Saudi Arabia: A promising destination for foreign investors

15 February 2024 Consultancy-me.com 2 min. read

Saudi Arabia's continued journey towards economic growth presents unparalleled opportunities for investors worldwide. Raid Abdulmajeed from Frost & Sullivan provides his insights into the Kingdom’s investment landscape and the potential for market-leading returns.

The journey of Saudi Arabia over the past years has been impressive. Since the launch of its Vision 2030 program, the Kingdom has added more than $500 billion in gross domestic output (GDP) to its coffers. That has seen Saudi Arabia become the 19th economy worldwide, with a further number of positions expected to be gained in the coming years.

While Saudi Arabia’s remarkable economic growth hinges to a large extent on its oil production, the country is investing heavily in the diversification of its economy.  

“Saudi Arabia’s growth is increasingly being driven by growth in non-oil services and products, fueled by private consumption and investment in sectors such as wholesale, retail trade, construction, and transport,” said Raid Abdulmajeed, Principal Consultant in the Growth Strategy and Implementation practice of Frost & Sullivan.

Alongside a massive chest of internal funds (for example: Public Investment Fund), Saudi Arabia is gaining ground on the worldwide investor map. Foreign direct investment (FDI) into Saudi Arabia saw an uptick in recent years, reaching 8.1 billion Saudi Riyals in the first quarter of 2023, a significant increase on the same period the year previous.

“FDI investments are expected to contribute to the localization of 57% of the local market, create 2.1 million jobs, and boost non-oil exports to SAR 580 billion by 2030,” said Abdulmajeed.

The burgeoning economy is not the only eye-catcher of Saudi Arabia. The country has established a stable political environment and an investor-friendly landscape, key pillars of investment decisions.

Abdulmajeed: “The Saudi Government's commitment to investor-friendly reforms are paying dividends. These reforms aim to reduce bureaucracy, offer incentives to investors, and simplify licensing procedures, making it easier for businesses to operate in the country. Initiatives like the Saudi Business Center further facilitate investment procedures for both local and foreign investors.”

“In today's ever-evolving global market, Saudi Arabia offers a fertile ground for investors. At Frost & Sullivan, we are delighted to play our part in helping companies identify promising investment opportunities and with bringing their plans to life.”