DUBAI — Saudi Arabia stepped up its engagement with the global investor community on Monday with the visit to Dubai and keynote address of Prince Saud Bin Khalid Al-Faisal, Deputy Governor of the Saudi Arabian General Investment Authority (SAGIA), setting out Saudi Arabia's new strategic direction, investment fast-track program and key sector priorities. In his speech at the fifth Annual Investment Meeting (AIM), Prince Saud honored the event's patron and host, Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, as a visionary man of true leadership who has brought prosperity to his neighbors in the region and beyond. On behalf of Saudi Arabia – the Country of Honor at this year's AIM Conference – Deputy Governor Prince Saud called for regional cooperation at a crucial time for investment in the region, urging GCC countries to use the Gulf's remarkable achievements as a platform to re-energize investment in the region. “The Gulf found its voice in the world in just a few short decades … (now) we all must be doing everything we can to transform wherever we call home into the most attractive places to invest in the world.” Prince Saud's address is part of a nation-wide drive to further diversify the region's largest economy and increase its competitiveness for foreign direct investment through major reforms like the opening of the Saudi Stock Exchange, massive public investments in infrastructure and human capital, and key reforms to Saudi Arabia's investment environment delivered through the Unified Investment Plan (UIP). The UIP will enable investors to capitalize on the major commitments of government spending in key sectors, and will build long-term partnerships that are both rewarding for investors and also add value to the Saudi economy. Prince Saud reviewed the first three investment sectors to be prioritized by Saudi Arabia – transport, healthcare, and industrial equipment. $140 billion worth of individual investment opportunities have already been identified in the transport and healthcare sectors, with this portion of the UIP to be launched in May. These opportunities will be open to all investors, and will also be actively presented to individual investing entities through an innovative global ‘match-making service' in the period ahead. Through the UIP, Saudi Arabia is developing a database to help investors make informed decisions to maximize their investment returns, as well as an app listing all investment opportunities in Saudi Arabia, in coordination with other Saudi ministries. Also central among its investor reforms is Saudi Arabia's new “fast-track” procedure, guaranteeing new investors will have their investment licenses processed within five days, which Governor Abdullatif discussed at the AIM Conference today. Pro-investment initiatives like these build on Saudi Arabia's existing strengths at a time when global investors are increasingly seeking new markets with both strong growth prospects and stability: • Saudi Arabia is the 3rd fastest growing economy in the G20, with 5% average annual growth over the past decade and the IMF projecting strong growth in the years ahead. • Last month (Feb 2015) Fitch affirmed Saudi Arabia's AA sovereign rating with a stable outlook, due to its fiscal position, stability, ongoing market reforms and anticipated oil price recovery. • More than 6,000 foreign companies have established operations in Saudi Arabia in the past decade as a result of economic and regulatory reforms. • Foreign and domestic investment combined has grown by 16% annually, on average, rising from $50 billion in 2005 to $180 billion in 2014. • Saudi Arabia offers foreign investors streamlined and duty free access to a market of 300 million people in the 17 Arab countries in the Greater Arab Trade Agreement. • Saudi Arabia has a young and tech-savvy population, and is making huge investments in human capital and healthcare – accounting for 40% of the national budget – including 35 universities, such as the King Abdullah University for Science and Technology. • Saudi Arabia has no income tax, no property tax, no sales tax, no value-added tax, and its company tax rate is 20%, with the ability to carry losses forward indefinitely to offset future tax liabilities. • Saudi Arabia allows 100% foreign ownership of businesses in key sectors. As part of Invest Saudi's delegation to the AIM Conference, several specific investment opportunities will be represented on-site and available for detailed consultations. Organizations participating in the Invest Saudi Pavilion at the AIM Conference include: the Royal Commission for Jubail and Yanbu, the Ministry of Health, Sadara Chemical Company, Jazan Economic City, Saudi Aramco, Saudi Export Development Authority, Modon, the Saline Water Conversion Corporation, the Saudi Industrial Development Fund, the Saudi Ports Authority, and the Economic Cities Authority. The AIM Conference is until March 1 at the Dubai International Convention and Exhibition Center. — SG
