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Saudi Arabia: USD 43b Foreign Investments in 4 Years

Saudi Arabia: USD 43b Foreign Investments in 4 Years

Friday, 8 February, 2019 - 11:45
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Riyadh- Fateh al-Rahman Youssef
A recent study by the Chamber of Commerce and Industry in Riyadh has unveiled 493 investment ventures in the country between 2013-2017 worth USD43.3 billion and led by 361 foreign investment firms.

The study on motives and challenges of foreign investment in the kingdom has affirmed that the economic transformation and national income sources diversification stand on luring more foreign investments, urging local investments and reinforcing the partnership between public and private sectors.

Foreign investment has several features mainly transferring the modern technology to productive economic sectors, enhancing the efficiency of technical and administrative skills of human resources, providing capital especially in the low-local-income states, and preparing direct and indirect job opportunities, according to the study.

Features of foreign investments also include progressing with citizens’ affluence by providing several world-class alternatives, increasing the competitiveness of national products and encouraging spending on research and development.

The study noted that the Saudi Vision 2030 aims to increase foreign investment to 5.7 percent of the country’s GDP from 3.8 percent and to rise from the current position of 25 to the top 10 countries on the Global Competitiveness Index.

It hailed incentives of direct foreign investment in the kingdom, including security and political stability, economic openness in addition to legislative and taxation incentives for foreign investors. Taxation privileges were granted for the less developed regions for a period of 10 years to seek more investments.

As for indirect secondary incentives, they were represented in the rise of purchasing power, providing economic, humanitarian ad demographic resources and services, as well as the essential infrastructure and the issuance of several decisions from the state to bolster the role of revision and internal supervision.

Economy expert Fadl al-Buainain told Asharq Al-Awsat newspaper that the Saudi economy is now more open to change and diversification, especially with the Saudi Vision 2030 that focuses on localization and reinforcing local content.

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