Saudi Arabia Aims to Attract $24 Billion in FDI with Updated Investment Law
Saudi Arabia is on track to achieve its goal of attracting foreign direct investments (FDI) worth $24 billion this year, thanks to the implementation of an updated investment law and a series of recent reforms, according to a report by Standard Chartered.
Driving Economic Growth
Standard Chartered’s latest analysis predicts that the Kingdom’s future economic growth will be fueled by increasing FDI inflow, investments in public capital expenditure, and the private sector. Saudi Arabia is also targeting $100 billion in FDI by the end of the decade as part of its economic diversification efforts.
Boosting Transparency and Protections
The recently approved investment law aims to elevate FDI in the nation by enhancing transparency and simplifying the investment process. The law also provides better protections for investors, ensuring adherence to the rule of law, fair treatment, property rights, intellectual property safeguards, and smooth fund transfers.
Positive Outlook for Investment
Standard Chartered expressed confidence in Saudi Arabia’s ability to reach its $24 billion FDI target for 2024, despite the larger goal of $100 billion by 2030. The financial institution highlighted the impact of recent reforms in attracting both domestic and foreign investors.
Continued Investment Landscape
The report noted that Saudi Arabia’s investment landscape remains strong, with a focus on driving economic growth through investment. The Kingdom’s high level of capital expenditure, budgeted at $50.4 billion with a significant portion already realized, is expected to support economic development.
Opportunities for Investors
Saudi Arabia’s Assistant Minister of Investment, Ibrahim Al-Mubarak, emphasized the country’s commitment to attracting more FDI from Europe and Asia. He highlighted the opportunities in the Kingdom’s financial sector, citing a strong debt capital market and low debt to GDP ratio as attractive factors for investors.