Saudi Arabia Opens Door for Foreign Investors to Explore Emerging Opportunities

The Line project in NEOM (SPA)
The Line project in NEOM (SPA)
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Saudi Arabia Opens Door for Foreign Investors to Explore Emerging Opportunities

The Line project in NEOM (SPA)
The Line project in NEOM (SPA)

The Saudi Cabinet approved on Sunday an updated investment law, with the aim of attracting foreign investors, develop the competitiveness of its investment environment and contribute to supporting economic diversification.

The new system, which will enter into force in early 2025, includes many advantages, most notably enhancing investors’ rights through fair treatment, protecting intellectual property and freedom to manage investments and transfer funds smoothly, promoting transparency and clarity in procedures in line with leading practices, and contributing to creating a reliable investment environment.

Economic and academic analyst at King Faisal University Dr. Mohammad bin Dalim Al-Qahtani told Asharq Al-Awsat that the updated investment system comes after more than 800 economic reforms and intensive workshops over the past six years.

He added that the system would constitute a model to be followed in the coming years by many countries, as it takes into account challenges facing foreign investments and the means to diversify processes and methods of attracting investments.

Al-Qahtani said the updated system includes protection for all intellectual, material and moral property, as required by the Kingdom’s regulations, in addition to removing obstacles facing investors.

The economic analyst stressed that Saudi Arabia offers many investment opportunities in the field of agriculture, industry, financial services, human capital, innovation, and environmental services, in addition to exploration in the fields of energy such as gold.

The Kingdom also seeks to attract investments that transform the country’s rich resources and energy into national industries, he remarked.

According to Al-Qahtani, the Saudi investment map features valuable opportunities estimated at USD3.3 trillion, equivalent to more than SAR 12trillion, distributed among 15 sectors.

He expected the opportunities, presented by the Saudi Ministry of Investment, to have an impact on the gross domestic product of more than USD7.5 trillion by the end of the current decade. It will also contribute to creating more than 3 million direct and qualitative job opportunities, in addition to about two million indirect job opportunities until 2030, he stated.

The economic analyst added that when the target of current investment opportunities is achieved, more than USD5 trillion in new openings will be generated during 2040.



Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
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Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)

As Saudi Arabia experiences a surge in visitor numbers, there is a growing need to expand tourism infrastructure to keep up with demand.

In this context, the private facilities sector has emerged as a practical solution, contributing positively to increasing the income of local citizens who own these facilities.

This growth is reflected in the significant rise in the number of licenses granted by the Ministry of Tourism, which saw an increase of 333% in 2024 compared to the previous year.

In January, the Ministry of Tourism announced a new mandate requiring booking platforms and apps to exclude or refrain from listing unlicensed private hospitality facilities.

This move aims to ensure the quality of services provided to both local and international tourists across the Kingdom. The Ministry warned that any platforms violating this directive would face penalties.

This initiative is part of a campaign which seeks to enforce compliance with tourism licensing standards and regulations, ensuring facilities meet the criteria outlined in the Kingdom's Tourism Law and its accompanying regulations.

According to preliminary data from the Ministry of Tourism, the number of licenses issued for private hospitality facilities reached 8,357 last year, compared to 1,929 licenses in 2023.

Under the Kingdom’s Tourism Law, a private hospitality facility is defined as “any furnished and independent property unit, owned by an individual, licensed by the Ministry of Tourism, and offering daily accommodation services for a fee.”

Ministry spokesperson Mohammed Al Rasasimah emphasized that the growing number of licenses issued for private hospitality facilities reflects the ministry’s commitment to enabling individual investors in the hospitality sector to obtain the necessary operating licenses.

This initiative aims to enhance the quality of services provided.

He added that these efforts are part of the "Guests Are Our Priority" campaign, which seeks to strengthen compliance with licensing and classification standards and ensure facilities meet the conditions set out in the Tourism Law and its regulations.

Dr. Salem Baajajah, an economic expert and professor at King Abdulaziz University, told Asharq Al-Awsat that the significant growth in hospitality and tourism facilities is a result of the Ministry of Tourism's efforts to attract foreign investors.

He added that this expansion reflects a growing demand from international investors seeking to capitalize on opportunities in Saudi Arabia, aligned with the Kingdom’s Vision 2030 goal of increasing the number of tourists visiting Saudi Arabia.

He further explained that the tourism sector is experiencing notable growth, contributing to higher revenues for local citizens.