Saudi Arabia: SAGIA to Become an Independent Ministry
Transforming the Saudi General Investment Authority (SAGIA) into an independent ministry represents a fundamental shift in the national economy.
Such a move would diversify production and attract qualitative investments, according to an economist and member of the Saudi Shura Council.
Saudi Arabia announced Tuesday that SAGIA will become the Ministry of Investment, led by former Energy Minister Khalid al-Falih.
Shura member Saeed al-Sheikh told Asharq Al-Awsat that the decision to convert SAGIA into a ministry is important, strategic, and in line with the directions of Vision 2030. It will give the Authority additional powers enjoyed by ministries to increase its effectiveness in attracting local and international investments.
Sheikh believes that there is an urgent need for horizontal diversification in light of the information boom and the fourth industrial revolution, pointing out that transforming the authority into a ministry aims to attract more qualitative investments that achieve high added value and also create job opportunities.
In addition, the investment sector will be separated from the Ministry of Commerce in a step that confirms the seriousness of the Saudi objective to diversify the economy, involve the private sector in development, and attract more investments that add value to the national economy.
The step also comes within the framework of promoting the government’s performance and pushing it to achieve the goals and initiatives of Vision 2030.
Vision 2030 is based on three axes: A prosperous economy, an ambitious state, and a vibrant society, in order for Saudi Arabia to be a pioneer in investment.
SAGIA sought to attract and enable qualitative investments for sustainable development, as the authority worked to monitor and evaluate the performance of investments and overcome difficulties faced by investors. It has carried out studies, and presented and proposed implementation plans with a view to promoting investments within Saudi Arabia.