In an effort to develop the investment environment in Saudi Arabia, Governor of the General Authority for Investment (SAGIA) Ibrahim Al Omar revealed that the “Taysir Committee”, which includes 39 government entities, is currently following up more than 450 recommendations to address the challenges facing the private sector.
He also noted that SAGIA has removed more than 4,000 foreign investments during the past five years, “either due to violations or to the lack of benefit to the Saudi economy.”
“We no longer want unfavorable investments for the country. Focusing on the sectors that matter to us and the systems we have developed, we have made it easier for us to access major companies,” he stated.
Al Omar’s statements came during the first session of the Small and Medium Enterprises Forum on Thursday, organized by Al-Sharqiya Chamber in Al-Khobar and inaugurated by Prince Saud Bin Nayef, Prince of the Eastern Region.
He said that small and medium enterprises accounted for 95 percent of the total number of commercial and investment establishments in Saudi Arabia, while their contribution to GDP was only 20 percent. He stressed, however, that this sector was the most important driver of economic growth and jobs creation, but its contribution to the Kingdom’s GDP was below expectations, compared to developed economies.
Al Omar emphasized the need to support the private sector, create a suitable environment to promote innovation and improve efficiency, and increase the sector’s contribution to GDP from 40 percent to 65 percent, based on Vision 2030.
In addition, the governor of SAGIA said efforts were underway to increase the percentage of Saudis’ spending on culture and entertainment from 2.9% to 6%, which he described as a “fertile ground to create more opportunities and investment areas, and open new horizons for the private sector in the Kingdom.”
