Riyadh: Minister Emphasizes Global Investment Landscape Shifts
The global investment landscape is undergoing significant changes due to the ongoing energy transition, the rise of artificial intelligence, and geopolitical tensions, according to Saudi Arabia’s Minister of Economy and Planning, Faisal Al-Ibrahim.
Speaking at the Future Investment Initiative in Riyadh on Oct. 31, Al-Ibrahim highlighted the need for efficiency-seeking investments to enhance productivity and spur future growth.
Investment Shifts in Response to Megatrends
Al-Ibrahim emphasized that megatrends like the energy transition, artificial intelligence, and geoeconomic fragmentation are fundamentally reshaping investment strategies. He urged global stakeholders to invest in the future and seize opportunities arising from these paradigm shifts.
He stressed the importance of channeling funds effectively to ensure that investments lead to tangible growth outcomes, rather than just being financial transactions.
Public-Private Partnerships Vital for Future Investments
Al-Ibrahim underscored the role of public-private partnerships in meeting future investment demands. He emphasized the need for both sectors to evolve in tandem to align with the evolving economic landscape.
The minister highlighted Saudi Arabia’s achievements under Vision 2030, noting the significant contribution of the non-oil sector to economic development.
Saudi Arabia as an Investment Powerhouse
Al-Ibrahim praised Saudi Arabia’s progress in attracting investments focused on technology and innovation, positioning the nation as a key investment hub in the Middle East and North Africa region.
He highlighted regulatory reforms that have made the Kingdom a favorable destination for international investors, emphasizing the clarity and innovation in the business environment.
Surpassing Investment Targets
Saudi Arabia’s Minister of Investment, Khalid Al-Falih, announced that the Kingdom has exceeded its target of attracting regional headquarters, with 540 international companies establishing their base in Riyadh.
Notable firms like Northern Trust, Bechtel, PepsiCo, IHG Hotels and Resorts, PwC, and Deloitte have set up their regional headquarters in Saudi Arabia, benefiting from tax incentives and support services.
Capital Market Growth and Investment Goals
Mohammed El-Kuwaiz, chairman of Saudi Arabia’s Capital Market Authority, highlighted the simultaneous growth in the public and private markets, including venture capital firms.
El-Kuwaiz outlined the Kingdom’s goal of attracting $3 trillion in investments to achieve Vision 2030 objectives, emphasizing the need for both public and private capital to drive growth.
He also pointed out the increasing attractiveness of Saudi Arabia’s capital markets to international investors, with a significant rise in foreign investment in recent years.