British man captured while fighting with Ukraine    Far-right candidate takes shock lead in Romania presidential election    Indians risk it all to chase the American Dream    Ireland hardens illegal immigration response    Al Ittihad claims top spot in Saudi Pro League after victory over Al Fateh    Do cigarettes belong in a museum?    Saudi Arabia joins international partnership initiative to boost hydrogen economy    Riyadh Emir inaugurates International Conference on Conjoined Twins in Riyadh    Saudi delegation participates in the 7th U20 Deans Summit in Brazil    Al-Jubeir discusses with EU officials enhancing bilateral cooperation    GASTAT: Non-oil exports up 22.8% in September 2024    Saudi Arabia to host 28th Annual World Investment Conference in Riyadh    Saudi Arabia allows licensed flour milling companies to export flour    Al Khaleej stuns Al Hilal with 3-2 victory, ending 57-match unbeaten run    SFDA move to impose travel ban on workers of food outlets in the event of food poisoning    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Sitting too much linked to heart disease –– even if you work out    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Arabia Reports Record-High Foreign Investor Licenses in Q4 2020
Published in Saudi Press Agency on 31 - 03 - 2021

The Kingdom of Saudi Arabia has reported record-high foreign investor licenses in the fourth quarter of 2020. In light of exceptional circumstances during the year 2020 and the effects of the 'Covid-19' pandemic, the Saudi economy maintained its resilience and proved its flexibility in facing crises, and began to recover gradually during the second half of the year.
A set of indicators showed the strength of economic performance, as the Ministry of Investment of Saudi Arabia (MISA) published the foreign investor licenses for the 4th Quarter of 2020, where it recorded 466 registered licenses, the highest on record since data began in 2005. The figure represented a 52% rise compared to the previous quarter and a 60% increase over the same period in 2019. Also, December witnessed the highest number of licenses awarded at 189.
The results indicate a continued rebound in Foreign Direct Investment (FDI) that began in June as the Kingdom moved to boost economic activity and relax some lockdown measures. Saudi Arabia's annual results also suggest growth across its investment environment may be returning to pre-Covid levels with a total of 1,278 new foreign companies that obtained licenses in 2020, a 13% increase relative to 2019 and a 73% increase from the number seen in 2018.
Industrial and manufacturing, logistics, retail, e-commerce and ICT are among leading industries that attracted FDI in Q4 2020, as non-oil sectors showed momentum recently.
The announcement came as MISA released its Winter 2021 Investment Highlights report, which outlines the developments and pro-business reforms across the Saudi investment environment in Q4 2020. Reforms profiled include the Labor Reform Initiative (LRI), which ensures increased protection and mobility for foreign employees, and a new Chambers of Commerce regulation that allows foreign investors to become Board members of Saudi chambers.
Eng. Khalid Al Falih, Minister of Investment of Saudi Arabia, said: 'These figures indicate that the Saudi economy is maintaining resilience despite current challenging market conditions. It presents strong evidence that we can continue forward with determination and optimism. HRH Crown Prince has launched several major economic and investment initiatives and projects, such as: the Public Investment Fund Strategy, the Large Companies Investment Program, and other projects that support economic growth and sustainability. In addition, Saudi Arabia is launching its National Investment Strategy this year. As the world reopens, we are reiterating our commitment to providing investors with opportunities and support they need to identify and take advantage of emerging opportunities.'
The Minister continued: 'This quarter's results indicate that the growth of non-oil sectors is gaining momentum and Vision 2030 policies, such as digitization and infrastructure development, are having a positive, tangible impact. Investors remain confident in the long-term Saudi opportunity – demonstrated by the fact a diverse range of global markets, such as the US, UK, Egypt, and India and sectors are represented in these latest quarterly figures. Industry and manufacturing, alongside logistics, retail, e-commerce, and ICT, have also topped the list for the most attractive sectors for FDI for yet another quarter.'
Citing additional macro-economic indicators, which point to further signs of ongoing resilience, the report also revealed:
FDI inflows into Saudi Arabia reached almost $1.9bn in Q4, with a growth of 80% compared to the same period in 2019, and indicated an increase of nearly 20% for the entire year of 2020 ($5.5bn).
Investments in non-oil manufacturing facilities totaled $6.13bn in 2020, with Q4 seeing a 95% year-on-year increase compared to the same period in 2019.
Real GDP recovery is gaining pace, with official data showing a 5.9% quarter-on-quarter growth in Q4.
The report's findings correspond with trends indicated by recent UNCTAD data, which reported FDI into the Saudi economy would increase in 2020 despite a dramatic drop in global FDI. According to the trade agency, the Kingdom's policy interventions in investment promotion and economic diversification were a major factor in driving the upward growth trajectory.
The report also details recent progress made across the ICT ecosystem, which plays a vital role in the Vision 2030 transformation. The Kingdom prioritizes digitization of its infrastructure, economy, society, and financial and government services. Led by the Ministry of Communications and Information Technology (MCIT), the ICT industry is expected to increase its GDP contribution to $13.3bn and grow 50% in capacity by 2023. Saudi Arabia has long been an early adaptor of new technology thanks to its young, digitally savvy population. According to data in the latest Investment Highlights, the average Saudi consumes 920MB of data daily, triple the global average, and internet usage now numbered 96% from just 2% two decades ago.
The increasing demand for tech among Saudi consumers and businesses is opening up investment opportunities in a range of nascent sectors such as e-commerce and Industry 4.0, which are expected to witness a compound growth rate of 12% and 13% by 2030, respectively. Other digital industries gaining traction include cloud computing; global giants Alibaba Cloud and Google Cloud recently partnered with Saudi companies STC Group and Aramco to facilitate domestic cloud services investments.


Clic here to read the story from its source.