Growing Saudi market will strengthen Middle Eastern economy
The Saudi market continues to rise and grow quarter-on-quarter. On top of being the largest economy in the Middle East, the Saudi market is consistently appearing as one of the fastest growing in both the Middle East and the world. There are a number of factors that are affecting this growth, and consequentially this growth is strengthening the Middle Eastern economy as a whole.
Aside from Saudi’s geographical location, with its easy access to Africa, Asia, and Europe, there are plenty of government initiatives driving business into the Kingdom. The government’s launch of its Vision 2030 initiative in 2016, for one example, is set to attract foreign investment into the Kingdom, in turn improving the Kingdom’s investment climate, and encouraging domestic and international participation in its economy.
As part of the Vision 2030 initiative, the Kingdom has outlined key business incentives and opportunities, which include tax incentives for underdeveloped KSA provinces; rights to buy property and allow sponsorship of employees; and minimal income tax. These incentives and opportunities of the Vision 2030 initiative should continue to attract investment, as they seek to boost their private sector contribution from 40% to 65% of their GDP.
Historically, Saudi’s economic boom, like much of the Middle East, has been heavily due to its oil and energy industry. The Kingdom possesses a large percentage of the global petroleum reserves, is one of the largest net exporters of petroleum, and has one of the largest oil reserves in the world. However, due to the Kingdom’s drive to attract business, foreign investment, and tourism, there has also been significant growth and contribution to its GDP from non-oil industries. Saudi’s non-oil sectors have seen significant growth in recent years as a result of its current business environment and market reforms.
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The steps the Kingdom has taken in reforming its logistics and infrastructure, bolstered by its geography and links to surrounding Gulf nations, and those nations’ own capabilities, have enabled Saudi to emerge as a global hub for a wider range of business activities. Investment into Saudi comes from across the globe, including the United Kingdom as the highest investor country in the saudi Kingdom. Investment from countries such as the UK is an indicator of the blooming market Saudi has to offer and is an example of the confidence and security that the market has. The industries and sectors that are seeing investment and development in Saudi are diverse and varied; from transport and logistics; to tourism, culture, and entertainment.
An ongoing number of projects in Saudi that are aiding investment into multiple sectors within the Kingdom are the mega projects that are due to be completed coinciding with Vision2030. These mega projects will undoubtedly attract plenty of attention to the Kingdom, as they include the construction of the world’s next tallest building, an amusement park, a nature reserve, NEOM – the high-tech city, and Qiddiya – the Kingdom’s ‘capital of entertainment’, to name a few. These projects are all underway in terms of their construction and are set to change the face of the Kingdom.
It is apparent that the foreseeable future of the Kingdom’s industries and economy will continue its positive upwards trajectory.
PRO Partner Group is physically located in the Kingdom along with regional presence across the Gulf – including Dubai, Abu Dhabi, Bahrain, Doha, and Muscat, not to mention a global office network spanning Europe, Asia, and Africa. It can assist businesses from five continents in setting up and delivering on their commercial plans in Saudi and GCC markets.
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