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Home - February 2020

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ECONOMIC TRENDS

New projects worth billions of dollars have made the kingdom an attractive destination for investors.


MINIING

The country, which has an abundance of untapped natural resources, will introduce new initiatives to make investing in the sector more enticing.


RETAIL

The industry shows immense growth potential, as it courts investors, promotes economic activity and generates jobs for nationals.



FOOD MANUFACTURING

A rapidly expanding population and growing demand for halal products have boosted the country’s potential to produce and export food.



SME

Fresh capital continues to pour into the country’s promising entrepreneurs and small business owners.



TRANSPORT

Authorities are putting their foot on the accelerator, as they push ahead with plans to privatise the country’s transportation sector.


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 IN THIS EDITION

New business-friendly policies and a spate of fresh infrastructure developments have boosted investor sentiment in the country.

The pace of development and changes taking place in Saudi Arabia has been breathtaking. New reforms, businesses and projects are being announced, proposed and advanced as authorities seek to achieve the goals and targets set out in Saudi Vision 2030.

Much of it will be driven by the private sector and international companies attracted to the country’s changing business environment.

Apart from hosting the G20 Summit in November, the kingdom is also looking to host the first ever global Foreign Direct Investment Summit in Riyadh in October 2020 in collaboration with the UN Conference on Trade and Development (UNCTAD).

The conference, attracting some of the world’s biggest investment institutions, will allow Saudi Arabia to highlight the reforms and investment opportunities on its shores.

The kingdom rose 30 places in the World Bank’s annual survey of business competitiveness among 190 countries, and was the top reforming country – the highest ranking since the bank launched the survey two decades ago.

Not surprisingly, Saudi business executives remain in an upbeat mood, despite the coronavirus threat, regional tensions and moderate global economic growth.

A new survey by management consultancy KPMG Al Fozan & Partners finds Saudi CEOs confident about their country, industry, and their businesses, as they adapt to three avenues for growth: expanding in emerging markets, promoting a culture of innovation, and investing in technology.

An overwhelming 98% of Saudi CEOs surveyed said they were confident about their company’s growth prospects, compared to 92% in the previous year. And at least 80% of the CEOs were looking to increase their workforce by up to 5% over the next three years.

As many as 72% of CEOs (up from 52% in 2018) believe that their organisation is actively disrupting the sector in which they operate, rather than waiting to be disrupted by the competitors, while 66% of the chief executives agree that their growth will depend on their ability to challenge and disrupt the sector.

“The global economy has become more uncertain and fragile… It is understandable that confidence in the global economy has dropped with the CEOs. Domestically, on the other hand, the Saudi government continues its effort to implement [several reforms],” Dr. Hussain Abusaaq, chief economist and head of research at KPMG Saudi Arabia, said in the report.
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