Innovation, business leads Saudi Arabia investment deals for Q1 2024

RIYADH: Innovation and entrepreneurs have attracted various investment partners to Saudi Arabia resulting in the completion of more than 53 percent of investment deals in the first quarter of 2024, official data showed.

A recent report issued by the Ministry of Investment showed that sports deals accounted for 19 percent of the 64 contracts during this period. Investors from the US and the UK topped the list with 11 and five deals respectively.

The Government’s strategic location and strong economy continue to attract foreign investors eager to support start-ups. In an interview with Arab News in April, Houssem Jemili of Bain and Co., said that the Government is leading in the use of technology in the Middle East and North Africa, with about 2.5 times more spending and these costs are are increasing every year.

Saudi Arabia has a growing and diverse set of financial partners, including government agencies such as the General Authority for Small and Medium Enterprises, known as Monsha’at, large investment funds , and venture capitalists, who provide direct and indirect funding to startups and entrepreneurs.

Furthermore, the Government’s significant investment in the sports industry is aligned with its Vision 2030 strategy, which aims to diversify the economy, strengthen private sector employment opportunities for citizens, and ensure a sustainable future. stable.

These efforts collectively improve the appeal of the Saudi market for sports investment.

The Ministry of Investment, working with other government agencies, also plays an important role in promoting investment opportunities through a number of initiatives.

These include organizing 13 local and international events in different sectors, such as sports, technology, and mining as well as real estate and manufacturing, during this quarter.

In addition, the ministry has participated in investment forums between Saudi Arabia and several countries, and also hosts special world events with international participation.

The initiative aims to attract foreign investment, strengthen bilateral relations with key trading partners, and strengthen long-term infrastructure for energy sectors in a rapidly changing global economy. , depending on the sector.

During the first quarter, the number of investment licenses reached 3,157, which is a 93 percent increase from the same quarter last year, excluding licenses issued as part of the anti-trafficking process. hide

The ministry issued the highest number of investment licenses to Egypt, which is 950, followed by Yemen at 346, India received 321, Syria received 180 licenses, and Pakistan received 159.

According to the department’s report, the construction and manufacturing sector is the leading sector with forty-seven percent of approvals.

The following are licenses for vocational and educational activities, information and communication technology and accommodation and food services as well as retail and retail trade and auto repair.

These sectors accounted for 81.8 percent of the total investment permits issued during this period.

On the other hand, the real estate industry experienced the largest annual growth in investment licenses, rising by 253.3 percent.

The Real Estate Future Forum, held in Riyadh earlier this year, saw the signing of agreements and memorandums of understanding worth more than SR100 billion ($26.6 billion).

This highlighted the confidence of investors who participated in the event, which attracted 300 speakers from 85 countries.

Among those present were government officials, representatives of private organizations, economists as well as local and global investors, decision makers and real estate experts.

In 2023, foreign investment in the Kingdom reached SR72 billion, showing a growth of 12.1% compared to 2022. This does not include the SR58.1 billion agreement of Aramco and the consortium led by BlackRock Real Assets and Hassana Investment Co., announced in February. 2022.

The stock of FDI, which represents the largest amount invested by foreign investors in the Kingdom, was SR808 billion in 2023, showing a growth of 6.1% compared to 2022. This growth highlights the positive impact of recent changes aimed at strengthening the investment environment, according to the ministry.

Saudi Arabia has shown impressive progress across several global indicators, achieving the top position in the Total Value of Venture Investment and Trust in Government Index and second place in the PCSI Consumer Sentiment Index and World Competitiveness Ranking for Cyber ​​Security.

These achievements highlight the Kingdom’s strong economic and investment environment.

Saudi Arabia’s key initiatives aimed at strengthening the investment environment include the launch of the Tourism Investment Program, which aims to boost tourism and hospitality services in targeted areas across the country.

This program aims to attract investments totaling SR42 billion and create up to 120,000 job opportunities by 2030. In addition, the Government has announced a new incentive package to support mineral exploration, in line with the objectives outlined in Saudi Vision 2030.

In addition, the Government has allocated substantial investments worth SR6.3 billion to support environmental projects and initiatives. These projects have shown promising results, recording SR295 million, or 6.6 percent, over the past year.

The initiative reflects Saudi Arabia’s commitment to promoting a favorable environment for investment and sustainable development, according to a ministry report.

Looking ahead, the Government aims to achieve an FDI inflow target of SR388 billion by 2030, equivalent to 5.7 percent of gross domestic product, while ranking among the 15 largest economies in the world.