Saudi Investment Minister: We Aspire to Become a Global Investment Hub

Saudi Arabia underscored on Monday its ambition to position itself as a global hub for logistics, finance, and industry.

Saudi Minister of Investment Khalid al-Falih stressed that the Kingdom strives to become a leading destination for sustainable investment.

He announced a collaboration with a Swiss fund to launch financing initiatives in the debt market. The partnership is set to mobilize billions of euros, showcasing Saudi Arabia's commitment to becoming a leading destination for sustainable investment.

The Saudi-Swiss roundtable met in Riyadh and was attended by notable figures, including Swiss Federal Councillor Guy Bernard Parmelin and Saudi Minister of Industry and Mineral Resources Bandar AlKhorayef.

Saudi investment plan

Saudi Arabia has plans for mega projects, with over $3.3 trillion earmarked for various sectors, including airports, factories, and green energy networks, announced al-Falih.

A substantial portion of this investment, approximately $1.8 trillion, is anticipated to be financed through bids to attract global investors from Switzerland and beyond, ensuring the highest quality standards for these projects.

According to the Minister, the Kingdom allocated $60 million annually to healthcare and life sciences, anticipating the active participation of Swiss companies in developing healthcare solutions.

He underlined Saudi Arabia’s ambition to becoming a global hub for added value in healthcare investments, supply chains, industrial development, energy transition, green energy, and other fields.

The Kingdom has devoted its efforts to increase the private sector's contribution to 65 percent, said al-Falih.

Saudi Arabia and Switzerland enjoy strong economic partnerships and deep-rooted bilateral relations and are poised to celebrate a century of cooperation by 2027.

Switzerland is one of the European countries that maintains strong relations with the Kingdom, which were boosted by the meetings of the joint economic committee on the sidelines of the Saudi-Swiss Forum held last year in Zurich.

New investments

Al-Falih pointed out that Saudi Arabia’s Vision 2030 is working to add new investments, indicating that the Kingdom is setting ambitious targets, aiming for an investment volume of $3.3 trillion by 2030.

He explained that the Saudi policies from Vision 2030 pushed towards exceeding the annual investment target during the past three years, including direct internal and external investment.

Saudi Arabia ranked tenth in the world in direct investment, including all economic sectors with investment in traditional energy, oil, gas, and petrochemical industries.

In terms of financial services, the Kingdom has become a global center for exporting capital abroad, and one of the destinations is Switzerland, said al-Falih, adding that financial transactions will continue with central Swiss and international banks.

Saudi industrial strategy

For his part, AlKhorayef highlighted a strategy that enables the private sector to create the required momentum by focusing on the industrial and mining industries, which is one of the most important Vision 2030 pillars.

He cited four significant strategies that transform the industrial and mining sector into a repository of promising opportunities, making the Kingdom a global logistics center and energy source.

AlKhorayef highlighted the opportunities for future cooperation with Swiss sectors, emphasizing the Kingdom's role as a critical economic bridge linking the Middle East and Africa with neighboring countries.

Moreover, he outlined Saudi Arabia's strategy to diversify the economy across 12 industrial sectors, categorized into three main groups focusing on national security, maximizing natural resources, and pioneering future industries such as space and renewable energy.

He also expected a significant transformation in light of the introduction of several programs and initiatives, including the Human Capability Development Program, to maximize human capabilities, training, skills, and education headed by Prince Mohammed bin Salman, Crown Prince and Prime Minister.

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.

Saudi Investment Minister: We Aspire to Become a Global Investment Hub