Saudi Arabia has witnessed a remarkable surge in global corporate interest, with nearly 600 firms planning to establish their headquarters within the Kingdom. This influx highlights the nation’s strong economic potential and investor appeal, particularly as the number of investment licenses registered has skyrocketed from 4,000 in 2018-19 to 40,000 by 2024. Importantly, total investments have doubled to SAR1.2 trillion (USD 320 billion), representing 30% of Saudi Arabia’s GDP.
Private Sector Growth
A recent panel at the PIF Private Sector Forum in Riyadh, titled “Ministerial Perspective on the Role of the Government to Enable the Private Sector,” highlighted the significant role the private sector plays in driving national economic growth. The panel also discussed the progress in the Kingdom’s investment climate.
It was noted that the private sector accounted for 72% of investments, while the Public Investment Fund (PIF) and state-owned enterprises represented 13%. These statistics reinforce Saudi Arabia’s growing stature as a leading global investment hub, driven by a robust economic environment and an array of diverse investment opportunities across several key sectors.
Saudi Emerging as Preferred Destination for Foreign Investment
Economic reforms under the Saudi Vision 2030 have bolstered the competitiveness of the local market, making it a preferred destination for international investors. As a result, the increase in foreign direct investment (FDI) flows reflects strong investor confidence in Saudi Arabia’s stable and dynamic economy.
Furthermore, Saudi Arabia’s ongoing diversification efforts have contributed significantly to its economic transformation, with non-oil sectors now accounting for 52% of the country’s total GDP. The Kingdom’s economy has surpassed the SAR 4 trillion (USD 1.1 trillion) mark, marking a historic leap in FDI inflows. Moreover, foreign investment stock has doubled to SAR 900 billion (USD 240 billion), signaling the kingdom’s accelerated progress towards achieving its economic and investment targets.
Establish Your Business in Saudi Arabia
Soutien Group offers a network of experts and specialists within the lifecycle of a business. We can offer expertise in Market Research and Assessment Saudi, Saudi Business Case, Saudi Business Model Development, Feasibility Study and Business Plan Saudi, Organizational and Operational Structuring Saudi, Saudi Sponsorship and Partnership, Company Formation Saudi among others.
Please click on the link to learn more about opportunities and possibilities in the Kingdom of Saudi Arabia as well as the initiatives of Soutien Group.
