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Home - July 2019

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ECONOMIC TRENDS

Deep-pocketed investors could have greater economic freedom under the kingdom’s new residency scheme.


OIL AND GAS



The oil giant is casting its net wider with investment in global partnerships and innovative technologies.


HEALTHCARE

The government has committed to improving healthcare standards and facilities in the kingdom by liberalising the industry.


RETAIL



Despite the value added tax and other levies, consumer sentiment has been very positive in the first three months of the year.


MINING

The Mansourah & Massarah project will produce the most significant amount of yellow metal in the company’s history.


COMMODITIES



Interest rate cuts, falling oil stockpiles, and growing demand for gold have bolstered the market in June.


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 IN THIS EDITION

As many as four new foreign investors on average have set up companies every day in Saudi Arabia in the first quarter of 2019, according to latest data from the Saudi Arabian General Investment Authority (SAGIA).


The kingdom’s efforts to boost private sector and foreign direct investment is paying off as companies pour into the economy, eager to participate in a number of sectors.


SAGIA has revealed that 267 new foreign investors were issued licenses in the first quarter, permitting them to operate in the country – a 70% increase compared to the first quarter of 2018.


“Guided by Saudi Vision 2030, our country is undergoing a remarkable economic transformation. The continued prosperity of the kingdom depends on sparking innovation, attracting foreign investors and empowering the private sector,” said Eng. Ibrahim Al Omar, governor of SAGIA. “The positive growth numbers that we have seen in the first quarter of 2019 represents a significant milestone on the road to 2030.”


Investors are also drawn to the kingdom as it liberalised a number of sectors, such as education and healthcare, with 100% foreign ownership. Data shows nine education-focused companies were set up in the quarter, compared to just one during the same period last year.


Among other sectors, the construction industry witnessed 39 new foreign investors securing business licenses, compared to only 22 in Q1 2018. Mining and quarrying industry – another growth area – saw 11 new foreign companies receive licenses, compared to only three in the same quarter last year.


In addition, a record number of new foreign entrepreneur licenses issued in the quarter, with 45 new start-ups, compared to 13 in the same quarter in 2018.


As many as 30 companies that were granted licenses were from India, while 13 Chinese companies were also awarded the right to set up base in the kingdom. Companies originating from the United States and the United Kingdom, secured 24 licenses each, as interest remains high from both the developed and developing economies.


Surging interest from foreign investors bodes well for the Saudi economy, which is picking up steam, and generating much-needed jobs and revenues.
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