The number of global companies establishing their regional headquarters in Saudi Arabia has increased to nearly 600. According to the Kingdom’s Minister of Investment, Eng. Khalid Al-Falih, the count of registered investment licenses skyrocketed from 4,000 in 2018 and 2019 to 40,000 currently. Total investments have also doubled to SAR1.2 trillion ($320 billion), representing 30 percent of the Saudi economy.
He stated, “Seventy-two percent of investments came from the private sector, while the Public Investment Fund’s (PIF) portfolio and companies accounted for only 13 percent. This underscores Saudi Arabia’s position as a strong global investment destination, thanks to its attractive economic environment and diverse investment opportunities across various sectors.” He further noted that economic reforms under Saudi Vision 2030 have boosted the competitiveness of the local market and attracted major international companies. The rapid growth in foreign direct investment flows reflects investor confidence in Saudi Arabia’s economy and stability.
Al-Falih shared his insights during a panel discussion titled “Ministerial Perspective on the Role of the Government to Enable the Private Sector,” part of the third edition of the two-day PIF Private Sector Forum held in Riyadh. He elaborated on the private sector’s role in driving national economic growth since the inception of Saudi Vision 2030 and highlighted the significant advancements in the investment environment.
Diversification of Saudi Arabia’s economy
The minister emphasized the notable diversification of Saudi Arabia’s economy, where non-oil economic activities now contribute to 52 percent of total GDP. He pointed out that even during phases of reduced oil activity due to the Kingdom’s production policies, the non-oil sector maintained a positive growth rate of 4 percent to 5 percent.
Al-Falih also noted that Saudi Arabia’s economy has surpassed SAR4 trillion (approximately $1.1 trillion), achieving unprecedented growth in foreign investment inflows. Since the launch of Saudi Vision 2030, the total foreign investment stock has doubled to SAR900 billion, reaffirming the Kingdom’s accelerated progress toward its investment and economic objectives.
