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Saudi Investment Climate Draws 184 New Regional Headquarters

Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
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Saudi Investment Climate Draws 184 New Regional Headquarters

Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)

Saudi Arabia’s efforts to improve its investment climate are attracting more regional companies. In the second quarter of this year, 57 companies moved their regional offices to the Kingdom, an 84% increase compared to the same period in 2023.

This follows 127 licenses issued in the first quarter, bringing the total to about 184 for the first half of the year.

The Ministry of Investment processed 4,709 investor visit visa applications, allowing foreign investors to explore opportunities in Saudi Arabia. It also addressed 38 investor issues, including legal and procedural challenges.

The Ministry’s latest report shows a 49.6% rise in new investment licenses, with a total of 2,728 issued in the second quarter, up from 1,824 a year earlier (excluding licenses from the commercial concealment correction campaign).

Recent investment licenses have been largely focused on construction, manufacturing, professional services, education, information and communications, and the food and retail sectors.

Mining and quarrying saw the biggest growth in new licenses in the second quarter, up 209.1% from last year. This was followed by other services with a 110.5% increase and wholesale and retail trade with a 96.3% rise.

The report highlights two key investment initiatives for the second quarter of 2024.

The Ministry of Economy and Planning introduced the “Sustainability Pioneers” program in Riyadh.

This initiative promotes sustainability nationwide by encouraging collaboration among top companies in key sectors, supporting the Kingdom’s green economy goals under Vision 2030.

The program emphasizes the role of public-private partnerships in achieving sustainable development and environmental protection.

Additionally, the Fashion Commission launched "The Lab" in partnership with Mohammed bin Salman Nonprofit City (Misk City) in Riyadh.

This new studio aims to advance the fashion industry by offering designers training and resources to improve manufacturing. It also seeks to create investment opportunities and support the sector’s growth.

The report also touched on the initiatives of the Saudi-British Strategic Partnership Council, which was recently established to enhance the development of mutual economic partnership in 13 vital and promising sectors. It is a forum for exchanging qualitative expertise and reviewing the latest practices in priority activities.

The initiative contributes to enhancing the volume of trade exchange between the two countries, and is accompanied by events with the participation of the most creative and innovative companies to enhance partnership in promising and emerging fields between the two countries.

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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.