JEDDAH, 3 October — Saudi Arabia has attracted about $10 billion in foreign investment commitments since it introduced sweeping reforms last year, the country’s main investment body said yesterday.
But it was unclear how the Sept. 11 attacks on US landmarks would affect foreign inflows, Prince Abdullah ibn Faisal ibn Turki, chief executive of the General Investment Authority, told Reuters in an interview.
“We have received around $10 billion in pledges in the past year, mainly from foreigners,” he said. “Frankly, I don’t know what the impact (of the attacks) will be...we are working normally now, but this is worrying everyone,” he said.
GIA is spearheading reforms aimed at diversifying the economy away from its dependence on oil and attracting billions of dollars into the country over the next ten years.
As part of the process, laws were introduced in May 2000 allowing full foreign ownership in some sectors of the economy for the first time. Taxes on foreign corporate profits were also slashed to 30 percent from 45 percent.
Prince Abdullah said that GIA was pushing for even lower corporate taxes, and urging the government to open more sectors of the economy to foreign investors.
Figures published by GIA show that it received SR34.5 billion ($9.2 billion) in investment pledges and issued 430 licenses between June 2000 and Sept. 9, 2001. Ninety percent of the total is from foreigners.
More than half of that amount was pledged for industrial projects, mainly in areas such as textiles, furniture, and jewelry. “A new insurance law is being studied now. I hope it will allow the same opportunities for foreign ownership,” he said.
