Foreign investments in Saudi Arabia grew 2% to hit $640bn in 2022

Foreign investments in Saudi Arabia grew 2% to hit $640bn in 2022
Foreign direct investments accounted for 42 percent of the total foreign inflow in the Kingdom, equivalent to SR 1.01 trillion. (Shutterstock)
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Updated 13 April 2023
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Foreign investments in Saudi Arabia grew 2% to hit $640bn in 2022

Foreign investments in Saudi Arabia grew 2% to hit $640bn in 2022

RIYADH: Foreign investments in Saudi Arabia grew 2 percent in 2022 to SR2.4 trillion ($640 billion) compared to SR2.36 trillion in 2021, reported the Saudi Central Bank, also known as SAMA. 

The SAMA report pointed out that foreign direct investments accounted for 42 percent of the total foreign inflow in the Kingdom, equivalent to SR 1.01 trillion. 

It further revealed that portfolio investments constituted SR822.8 billion in 2022, while others stood at SR572.3 billion. 

The Kingdom has been witnessing a steady rise in foreign investments since the launch of Vision 2030 in 2016, a program aimed at diversifying the Kingdom’s economy which has been dependent on oil for several decades. 

In 2016, foreign investments in the Kingdom were worth SR1.26 trillion and within six years, the figure has almost doubled, which strongly indicates the growing investor appetite in the Kingdom. 

Earlier this month, Saudi Arabia bagged the third spot in the Middle East and sixth globally in the Emerging Markets ranking of the 2023 Foreign Direct Investment Confidence Index released by Kearney, affirming the high investor confidence in the Kingdom. 

The study noted that the Kingdom procured good scores in the index due to its strong and growing technological and innovation capabilities, a highly collaborative approach to public-private investment, the sustained fiscal windfall from solid oil revenue and the recovery of the tourism sector following the significant pandemic-induced disruption. 

In March, Saudi Arabia’s Minister of Investment Khalid Al-Falih said that multinational companies relocating their headquarters to Saudi Arabia in 2023 to secure government contracts could get tax exemptions. 

Al-Falih further clarified that the operations of multinational firms outside Saudi Arabia would be taxed in those entities’ country of operations and would not be intermingled or mixed with the regional headquarters in the Kingdom. 

“We realized that we had to do everything we can through policy and regulation to ensure that the companies will not incur additional risks or costs from the alternative jurisdictions for managing their regional operations and the biggest one, of course, is taxation,” he said.


Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit
Updated 1 min 45 sec ago
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Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

RIYADH: Abu Dhabi National Hotels is exploring expansion opportunities in North Africa and Europe, the company’s CEO revealed during the Future Hospitality Summit on Tuesday.

This development strategy points to the company’s growth ambitions, giving access to new customer segments and markets, Khalid Anib indicated.

The executive also emphasized ADNH’s commitment to environmental responsibility, stating: “As owners, we are embracing sustainability and are ready to enhance our buildings to be more sustainable.”

The Future Hospitality Summit, a gathering of industry figureheads and key stakeholders, witnessed prominent business leaders sharing their insights on expansion and ambitions for growth within the market. 

Adeeb Ahamed, the managing director of Lulu Financial Holdings & Twenty14 Holdings, addressed the hospitality industry’s pivotal role in job creation.

Ahamed stated: “One in 11 jobs are generated by the hospitality sector, making it a priority in every market.”

He stressed that despite technological advancements, the hospitality sector remains unique, with limited job displacement, as the human touch remains integral.

Ahamed also highlighted the growing appeal of the region as a tourist hot spot, drawing parallels with popular European destinations.

He noted: “The countries in the GCC (Gulf Cooperation Council) are becoming very attractive in terms of tourism, and this is very good news for the entire economy. Like in Europe where people visit multiple countries in one holiday, the GCC is creating something of that sort and this is where we like to capitalize, we like to see how we can do it in Oman, in Saudi Arabia, in Qatar. And this would give more reasons to travel here.”

In response to the rapid growth of the hospitality sector in neighboring Saudi Arabia, Ahamed commented: “I think Saudi Arabia is not a competition. It’s a combined effort that’s going to bring more confidence to investors to invest in the region, so more awakening done by neighboring countries is definitely going to boost the ecosystem.”


Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 
Updated 51 min 7 sec ago
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Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

RIYADH: Saudi Arabia’s sustainable transport plans are a vital part of the Kingdom’s drive to reduce global carbon emissions by 4 percent, said a government official on Tuesday. 

Speaking at the Global Sustainable Transport Forum held in Beijing from Sept. 25-26, the Saudi Transport and Logistics Services Minister Saleh bin Nasser Al-Jasser stressed that sustainability is a fundamental element of the Kingdom’s Vision 2030. 

Al-Jasser underscored that the Kingdom’s strong commitment to sustainability has been smoothly incorporated into the transport and logistics sector through the National Strategy for Transport and Logistics.  


Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 
Updated 53 min 54 sec ago
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Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

CAIRO: Egypt awarded on Tuesday four blocks in an oil and gas exploration bid round for concessions in the Mediterranean and Nile Delta to Italy’s Eni, BP, QatarEnergy, and Russia's Zarubezhneft, the petroleum ministry said. 

Eni would take two blocks by itself and a third in a coalition with BP and QatarEnergy, while Zarubezhneft was also awarded a block. 

This comes after Egypt’s petroleum ministry launched an international bidding round on Monday for exploration in 23 open blocks, with the offer deadline set for Feb. 25, according to Reuters. 

The round includes 10 areas in Egypt’s Western Desert, two in the Eastern Desert, seven in the Gulf of Suez and four in the Red Sea, the ministry said. 

Egypt, the most populous Arab country, has sought to position itself as a regional energy hub. 


Fitch upgrades Oman’s credit rating to BB+

Fitch upgrades Oman’s credit rating to BB+
Updated 56 min 29 sec ago
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Fitch upgrades Oman’s credit rating to BB+

Fitch upgrades Oman’s credit rating to BB+

RIYADH: Reflecting Oman’s commitment to fiscal stability, US-based Fitch Ratings upgraded the Gulf nation’s long-term foreign currency issuer default rating to “BB+” from “BB.”  

According to the agency, the Omani government’s dedication to implementing measures to maintain financial security was a key factor contributing to the advancement. 

This promise comes in response to the challenging scenario of the oil price’s breakeven point, which has declined from $80-90 per barrel between 2017 and 2019 to less than $70 per barrel in 2023. 

The agency also noted that the upgrade implied that the government would not backtrack on recent fiscal consolidation measures. 

“The reduction of Oman’s fiscal breakeven price to below $70 per barrel over our forecast horizon from $80-$90 over 2017-19 significantly reduces vulnerability to oil price swings, although risks remain,” said Fitch Ratings in its report.


Saudi Arabia, Singapore strengthen economic ties with business forum

Saudi Arabia, Singapore strengthen economic ties with business forum
Updated 26 September 2023
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Saudi Arabia, Singapore strengthen economic ties with business forum

Saudi Arabia, Singapore strengthen economic ties with business forum

RIYADH: In a move poised to bolster economic ties between Saudi Arabia and Singapore, the Kingdom’s Minister of Commerce, Majid Al-Qasabi, led a delegation of 36 officials on a working visit to the Southeast Asian country on Tuesday to explore potential bilateral agreements.

This visit, which extends until Sept. 27, is a key part of the Saudi-Singaporean Business Forum, focused on boosting trade in goods and services. The forum aims to foster collaboration in emerging industries, enhance digital literacy, and promote entrepreneurship, as reported by the Saudi Press Agency. 

The first day of the forum featured crucial discussions covering the Singaporean education system, cooperation in endowments, and opportunities for student skill development.