Global firms setting up Saudi HQ doubles to 600; nets $320bn FDI
RIYADH, 8 days ago
Saudi Arabia has announced tremendous response from global companies for its growth story with nearly 600 firms set to open their headquarters in the kingdom.
The number of registered investment licences surged from 4,000 in 2018-19 to 40,000 in 2024, while total investments have grown two-fold to a whopping SAR1.2 trillion ($320 billion), accounting for 30% of the Saudi economy, said Minister of Investment Engineer Khalid Al Falih.
He was speaking at a panel discussion titled 'Ministerial Perspective on the Role of the Government to Enable the Private Sector,' held as part of the third edition of the two-day PIF Private Sector Forum in Riyadh.
He elaborated on the private sector's role in driving national economic growth since the launch of Saudi Vision 2030 and highlighted significant progress in the investment environment.
"Around 72% of investments came from the private sector, while the Public Investment Fund's (PIF) portfolio and companies account for only 13%," stated Al Falih.
The minister said it underscores Saudi Arabia's position as a strong global investment destination, thanks to its attractive economic environment and diverse investment opportunities across various sectors.
He pointed out that the economic reforms under Saudi Vision 2030 have enhanced the competitiveness of the local market and attracted major international companies, with the rapid growth in foreign direct investment flows reflecting investor confidence in Saudi Arabia’s economy and stability.
The minister emphasised the notable diversification of Saudi Arabia’s economy, where non-oil economic activities now account for 52% of total GDP.
"Even during periods of reduced oil activity due to the kingdom’s production policies, the non-oil sector maintained a positive growth rate of 4% to 5%," noted Al Falih.
The minister pointed out that Saudi Arabia's economy had surpassed SAR4 trillion ($1.1 trillion) mark, achieving unprecedented growth in foreign investment inflows.
Since the launch of Saudi Vision 2030, the total foreign investment stock has doubled to SAR900 billion ($240 billion), reaffirming the kingdom’s accelerated progress toward its investment and economic goals.-TradeArabia News Service
