The Saudi Tadawul index crossed 12,000 points in January – yet another indicator that investors and businesses see incredible potential in the country’s non-oil economy. The kingdom’s corporate sector, of course, is in the midst of rapid growth, as a number of Saudi Vision 2030 opportunities beckon. The National Investment Strategy, Shareek Program Privatization Program, and the National Industrial Development and Logistics Program, among others which have been unveiled in recent years are designed to accelerate economic growth and deepen the country’s capabilities across a number of sectors. These projects are expected to raise investment levels and boost economic activity in the country. For example, the National Transport and Logistics Strategy (NTLS), launched in June 2021, aims to generate USD 12 billion of annual non-oil revenue in the sector ahead of 2030. All told, total spending in the kingdom will reach SAR 27 trillion by 2030, including investments of the Public Investment Fund. Indeed, foreign direct investment inflows witnessed a surge in the second quarter of 2021 (the latest available data), reaching the highest figure since late 2010, according to the Ministry of Investment (MISA). The total amount of FDI inflows during the period reached USD 13.8 billion, compared to an inflow of USD 1.8 billion in the previous quarter. Licenses issued for new foreign investment projects reached 575 in the second quarter, setting a new high for the third consecutive quarter, MISA noted The listing of new companies in the Tadawul over the past year also highlighted the attractiveness of the kingdom’s capital markets. The market saw nine listings on the main exchange and three in the Nomu-parallel market. The government is also looking beyond conventional sectors to boost investment and open up new avenues of growth. This includes NAFES, an online licensing platform launched by the Ministry of Sport to encourage global investors to participate in one of the world’s fastest growing sports markets. “Allowing global investors to take full foreign ownership of clubs, academies and centres across 27 of its most popular sports, NAFES is expected to boost competition among athletes,” according to MISA. This year promises to bring more economic activity in diverse sectors, which is actually the roadmap for Vision 2030. |