RIYADH - The Saudi Arabian General Investment Authority (SAGIA) has issued as many as 267 new licenses for foreign investors to operate in the Kingdom during the first quarter of 2019, marking an increase of 70 percent when compared to the same period last year. This number shows that more than four new companies are being set up in the country every day, thanks to SAGIA's accelerated efforts to promote a competitive business environment in the Kingdom. Eng. Ibrahim Al-Omar, governor of SAGIA, said: "Guided by Saudi Vision 2030, our country is undergoing a remarkable economic transformation. The continued prosperity of the Kingdom depends on sparking innovation, attracting foreign investors and empowering the private sector." He noted that the leading growth sectors include education and healthcare, following the recent lifting of foreign ownership restrictions in these industries. During Q1 2019, nine new education-related companies were established, compared to one in Q1 2018. "Q1 2019 also saw important milestones in the healthcare sector, such as Hassana Investment Company, the investment arm of the General Organization for Social Insurance (GOSI), forming a joint venture with UAE-based NMC Healthcare to acquire and develop a pan-Saudi network of healthcare facilities with a capacity of up to 3,000 beds and total investments up to SR6 billion over the next five years. Other sectors that witnessed strong growth in Q1 2019 include the construction industry, which saw 39 new foreign investors receive business licenses, compared to only 22 in Q1 2018. The mining and quarrying industry saw 11 new foreign companies receive licenses, compared to only three in Q1 2018. There were also a record number of new foreign entrepreneur licenses issued in Q1 2019, with 45 new startups setting up in the Kingdom, compared to 13 in the same period last year. "The goal of our reform program is to help realize the potential that Saudi Arabia holds for the benefit of Saudi nationals. The investment opportunities that the Kingdom offers foreign companies also offers opportunities for the transfer of skills, expertise and best practice to national communities, while providing new private sector job prospects for young Saudi men and women," Al-Omar said. "We consider foreign companies, which look to Saudi Arabia as our growth partners – whether they seek a joint-venture with Saudi companies or choose to set up on their own. They are integral to the success of our journey toward 2030." Al-Omar said that 24 companies each from the United Nations and the United Kingdom were established in Q1 2019. A total of 30 companies from India received licenses, compared to 14 in Q1 2018 while 13 Chinese companies also received licenses, compared to just seven during the same period last year. "We want to make it easier for foreign investors to do business in Saudi Arabia. We have taken global best practice models and combined them local knowledge and insights in order to eliminate unnecessary barriers to doing business, while making it easier for our new friends from abroad to understand our unique Saudi culture and customs and how they can better integrate and contribute," the SAGIA chief added. In recent months, SAGIA has launched high-profile campaigns at key global events such as the World Economic Forum in Davos to raise awareness of the valuable and diverse investment opportunities that Saudi Arabia offers. SAGIA has also facilitated a series of high-level investor forums in China and India to coincide with Saudi royal visits earlier this year. It has also led the National Licensing Reform Program and by which the number of licensing requirements in Saudi Arabia has been reduced by more than half. The World Bank recently ranked Saudi Arabia as the 4th largest reformer within the G20 and noted improvement across four key pillars in its latest Doing Business report.
