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Home - September 2019

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ECONOMIC TRENDS

 

Efforts to improve the business environment and develop industries outside the oil sector have bode well for the kingdom.

TRANSPORTATION

With the capacity to dramatically reduce travel time for passengers and cargoes, hyperloop has been envisioned as a new form of transportation.

VISION 2030

Leadership changes and new legislations are expected to help the country reach its economic diversification goals.

RENEWABLE ENERGY

Once operational, the project in Al Jawf province will have the capacity to supply electricity to around 70,000 homes.

SME

Government and venture capital initiatives are helping entrepreneurs overcome one of the most pressing challenges in starting a business.

TRADE

Sale of non-petroleum products overseas continues to rise, accounting for more than 20% of the country’s total annual exports.

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 IN THIS EDITION

Lifting the restrictions on company ownership and easing the business incorporation process have helped attract international capital.


News that the number of foreign investor licences doubled in the second quarter compared to the same period last year highlights Saudi Arabia’s plan to boost foreign investment and create a robust business destination.


The Saudi Arabian General Investment Authority said it had issued 291 new foreign investor licenses in the second quarter of 2019, more than double the number issued in the same period last year and the equivalent of five new licenses a day.


Construction licenses also led the issuances with 61 new international companies, followed by information and communications technology companies, which secured 51 licenses, and manufacturing companies with 45 licenses. British firms accounted for 45 licenses, Indian companies received 29 permits and American companies 23 issuances. Two thirds of the new foreign investor licenses during the period were for ventures with full foreign ownership, reflecting the impact of recent reforms on the kingdom’s business environment.


“Within two years, Saudi Arabia has implemented 55% of more than 300 economic reforms identified, such as opening up a wide range of economic sectors to foreign investment, including allowing 100% foreign ownership in a range of new sectors,” according to SAGIA.


Recent reforms have also simplified the investment process. Obtaining a foreign investor license from SAGIA now requires two documents and can be processed in three hours – reducing the requirement from 12 documents, which would take three days to process, the authority noted.


Saudi’s foreign direct investment last year more than doubled to USD 3.21 billion compared to the previous year, as the government liberalised the economy, according to UNCTAD data.


The appointment of new ministers and changes to the structures and boards of a number of other major institutions also signals a strong push to inject new ideas and accelerate the various Saudi Vision 2030 programmes.
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