Riyadh: The latest developments in Saudi Arabia’s far-reaching efforts to boost inflows and expand foreign ownership in key sectors of the economy is explored by Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority, in a wide-ranging interview he gave recently to the global research and advisory company Oxford Business Group (OBG).
The interview appears in The Report: Saudi Arabia 2019, OBG’s latest publication on the Kingdom’s economic development and investment opportunities.
Al Omar highlighted the raft of measures that the Kingdom has implemented to enhance its business climate, which include speeding up Customs clearance times from two weeks to 24 hours, introducing an insolvency law and facilitating the issuance of business visas within 24 hours.
He also noted the key role that the new Invest Saudi portal is playing in attracting and retaining investment in the non-oil sectors. “Prior to setting up a business, investors are provided with intelligence reports and meetings with local stakeholders are facilitated,” he said. “Particular support is given to financial institutions and businesses with government licences.”
Al Omar told OBG that the decision to open up key sectors of the economy to accommodate expected growth would present a wide range of opportunities for international investors, especially in health care and education. He noted that the health care sector is expected to grow at an annual rate of 5.5%, while forecasts indicate that the number of students in the Kingdom will rise from 7.4m to 10.5m by 2030, providing plenty of room for private sector growth.
“Health care, education, retail, military industries and real estate brokerage are just some of the sectors that we have recently opened to 100% foreign ownership,” he said. “We want them [investors] to help us meet growing demand through public-private partnerships.”
Figures released by SAGIA in a special report published in April to mark the third anniversary of the launch of Vision 2030 – Saudi Arabia’s ambitious social, cultural and economic transformation plan – show that the Kingdom’s ambitious reforms are delivering results. The number of new international companies founded in the country reached 267 in the first quarter of 2019, up by 70% on the same period last year and marking the highest number of new foreign investor licences awarded in a single quarter since 2010. Of these firms, 70% are 100% owned by foreign entities.
Commenting in the report, Al Omar said these and other results confirmed that the market was responding well to national efforts to enhance Saudi Arabia’s business environment, while also indicating a continuing positive trend in investor activity. FDI was up by 127% in 2018 on volumes the previous year, while the number of foreign investment licences issued rose by 96% over the same period. In addition, the Kingdom awarded 67 foreign entrepreneur licences in 2018.
“Today, Saudi Arabia is a strategically located G20 economy with favourable fundamentals, an increasingly attractive business environment and access to a host of greenfield markets and innovative projects that are hard to rival globally,” he said.
The Report: Saudi Arabia 2019 is a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication contains a detailed, sector-by-sector guide for investors, alongsidecontributions from leading personalities. The Report: Saudi Arabia 2019 has been produced with King Abdullah City for Science and Technology and Riyadh Chamber of Commerce and Industry. It is available online and in print.
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About Oxford Business Group
Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, from the Middle East, Africa and Asia to the Americas. A distinctive and respected provider of on-the-ground intelligence on the world’s fastest growing markets for sound investment opportunities and business decisions.
Through its range of products - Economic News and Views, OBG Business Barometer - CEO Survey, OBG Events and Conferences, Global Platform - exclusive video interviews, The Report publications - and its Consultancy division, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments.
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