RIYADH: Saudi Arabia’s position as a significant destination for global investors was strengthened with the signing of 53 deals in the third quarter of 2022, according to the Ministry of Investment.
Deals were made across communications, energy and health industry sectors and have presented new opportunities in green energy, technology, healthcare, biotechnology, transport and logistics and innovative startups.
The Kingdom primarily brokered the ministry’s deals, and 21 of the 53 transactions were from Saudi Arabia. A total of 10 contracts were from the UAE, four from the Cayman Islands, and three each from the USA and British Virgin Islands.
Crown Prince Mohamed bin Salman paved the way for investment through deals, legislation and bilateral diplomacy with different regions of the world.
These include discussions with France concerning energy diversification, signing 18 investment agreements with the US during President Biden’s visit, and finalizing a deal with Greece to connect the Middle East and Europe with an undersea data cable.
Other agreements involve strengthening ties with Albania, Germany, Kazakhstan and Uzbekistan, besides establishing the Saudi Egyptian Investment Co., the Saudi Investment Promotion Agency, a Saudi hub for gaming and esports and the National Real Estate Registration Services Co.
“Our nation holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues,” the crown prince said in a statement.
Saudi Arabia also launched the Global Supply Chain Resilience Initiative to strengthen the country’s global networks while advancing production potential.
According to MISA’s report, the GSCRI is expected to attract $10.7 billion in foreign direct investment within the first two years and $2.7 billion worth of incentives to be disbursed through the initiative.
“By introducing GSCRI, Saudi Arabia looks to enhance the investment ecosystem further, integrating cost leadership with supply chain security and sustainability,” said Khalid Al-Fatih, the minister of investment, in a statement.
“GSCRI has been designed to bolster key export-oriented industrial sectors by incentivizing investment and guiding investors through their investment lifecycle, also aiding in tailoring specific incentives under the National Investment Strategy,” he added.
The report described 2022 as a turning point in the Kingdom’s economic history as vital economic sectors continue to grow.
According to the International Monetary Fund, Saudi Arabia is expected to take the lead as the fastest-growing economy in 2022.
The Kingdom’s real gross domestic product is forecast to grow by 7.6 percent at the end of this year; its non-oil sector real GDP to grow 4.2 percent, and its current account to witness a 17.2 percent surplus.
“The Kingdom’s transformation keeps unlocking the vast potential for investment in a market that is experiencing consistent growth and leading economic development among the G-20,” stated Al-Fatih.
