The Kingdom of Saudi Arabia (Saudi Arabia) is becoming a thriving international business center as the new investment law recently announced by Saudi Arabia’s Ministry of Investment is expected to increase international trade by 50%.
The appeal of the law, which declares that local and foreign investment will receive equal treatment, was reinforced by Saudi Arabia’s recent award-winning presence at Expo 2020 Dubai, which demonstrated the global value of the dynamic economy of the Kingdom. As the country seeks to diversify away from oil exports, more than $936 million in funds was recently announced at the 2022 World Entrepreneurship Congress to facilitate international companies’ access to Saudi markets.
Prior to the announcement of the new investment law, official World Bank data predicted that the country’s GDP would reach $820 billion by the end of 2022, up from $700 billion in 2020. However, this Recent developments, which will see foreign investors given neutral treatment without any discrimination, could see KSA’s business activity spike significantly to shatter World Bank projections.
The new Saudi investment law is expected to increase the attractiveness of doing business in the Kingdom, as it removes any commercial advantage previously granted to Saudi companies. Accordingly, the law will grant foreign investors the freedom to manage, sell and dispose of their economic projects, as well as to own all the necessary properties that will ensure the smooth running of business. They will also be able to conclude commercial contracts with the full support of all competent authorities. In addition, local and foreign investors will be subject to the same sectoral approval requirements for licensing and registration, as well as approvals or permits for certain economic activities or special economic zones.
Interest in new businesses entering the Kingdom has been catalyzed by the country’s recent participation in Expo 2020 Dubai, which highlighted the Saudi Vision 2030 and an ambitious economic growth agenda. Serving as a window into the country’s youthful ambition, the Saudi pavilion recorded nearly five million visitors (which accounted for almost 25% of the total number of attendees at the six-month-long global event) and illustrated the country’s growing potential as a leading business center.
Paul Arnold, Managing Director of Sovereign Saudi Arabia commented saying, “The KSA pavilion has created new awareness of Saudi Arabia’s business potential with more than 4.6 million visitors and this new investment law only adds momentum to further strengthen Saudi Arabia’s position. KSA as one of the most attractive places to do business globally.
by applying the principle of competitive neutrality to both public and private investors, this removes all previous trade barriers to entry. Whether you are looking to expand your business presence or launch your brand for the first time, if you have a contract in hand, now has never been a better time to enter and invest in the Saudi market.
With unemployment falling and solid non-oil diversification steadily advancing, the Kingdom’s economy is expected to more than double in the coming years as Saudi Vision 2030 materializes. As Saudi Arabia continues to restructure and adapt rapidly, it demonstrates that the observed optimism is warranted.