image description
image description
Tell A Friend

FinancialNews


  • 16-04-23

    Foreign Investments in Saudi Arabia Grew by 2 Percent in 2022

    (MENAFN) The Saudi Central Bank, also known as SAMA, reported that foreign investments in Saudi Arabia grew by 2 percent in 2022 to reach SR2.4 trillion (USD640 billion) compared to SR2.36 trillion in 2021. The SAMA report revealed that foreign direct investments accounted for 42 percent of the total foreign inflow in the Kingdom, equivalent to SR 1.01 trillion. Meanwhile, portfolio investments constituted SR822.8 billion in 2022, while others stood at SR572.3 billion.

    The Kingdom has been witnessing a steady rise in foreign investments since the launch of Vision 2030 in 2016, a program aimed at diversifying the Kingdom's economy, which has been dependent on oil for several decades. In 2016, foreign investments in the Kingdom were worth SR1.26 trillion, and within six years, the figure has almost doubled, indicating the growing investor appetite in the Kingdom.

    Earlier this month, Kearney released the 2023 Foreign Direct Investment Confidence Index, where Saudi Arabia ranked third in the Middle East and sixth globally in the Emerging Markets ranking, affirming high investor confidence in the Kingdom. The study noted that the Kingdom procured good scores in the index due to its strong and growing technological and innovation capabilities, a highly collaborative approach to public-private investment, the sustained fiscal windfall from solid oil revenue, and the recovery of the tourism sector following the significant pandemic-induced disruption.

    In March, Saudi Arabia's Minister of Investment, Khalid Al-Falih, stated that multinational companies relocating their headquarters to Saudi Arabia in 2023 to secure government contracts could get tax exemptions. He further clarified that the operations of multinational firms outside Saudi Arabia would be taxed in those entities' country of operations and would not be intermingled or mixed with the regional headquarters in the Kingdom. Al-Falih said, "We realized that we had to do everything we can through policy and regulation to ensure that the companies will not incur additional risks or costs from the alternative jurisdictions for managing their regional operations, and the biggest one, of course, is taxation."

    The steady growth in foreign investments in Saudi Arabia is a result of the government's efforts to diversify the economy and attract foreign investors. The Kingdom's commitment to improving its business environment and encouraging foreign investment has been evident in the various initiatives launched under Vision 2030. With the positive outlook for the Kingdom's economy and the government's support for foreign investors, Saudi Arabia is likely to remain an attractive destination for foreign investment in the coming years.

    MENAFN16042023000045014228ID1106019330

Follow us

RSS
Terms & Conditions  |  Privacy & Security  |  Contact Us  | Sitemap
© 2024 BBK  |  All Rights Reserved