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Saudi Arabia Establishes New Authorities to Support the Investment, Development System

Saudi Arabia announces the allocation of an independent authority to develop road networks infrastructure and increase its efficiency (SPA)
Saudi Arabia announces the allocation of an independent authority to develop road networks infrastructure and increase its efficiency (SPA)
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Saudi Arabia Establishes New Authorities to Support the Investment, Development System

Saudi Arabia announces the allocation of an independent authority to develop road networks infrastructure and increase its efficiency (SPA)
Saudi Arabia announces the allocation of an independent authority to develop road networks infrastructure and increase its efficiency (SPA)

Saudi Arabia continued exerting efforts to attract investments and expand the local development project, announcing the establishment of two independent bodies to promote investment and another for roads.

The Saudi cabinet approved the establishment of the Saudi Investment Promotion Authority (SIPA) to achieve cooperation among various parties and support all business and services related to investment marketing. It will also manage the unified national identity to market investments and attract them to the Kingdom.

The cabinet also issued a decision to establish the Public Authority for Roads.

Experts stressed to Asharq Al-Awsat the importance of establishing the new authority to focus on marketing investment, accelerating businesses, and attracting capital following the state's plans to reflect positively on the national economy.

They believe the authority will achieve the National Investment Strategy (NIS) objectives laid out by Crown Prince Mohammed bin Salman.

Supporting the System

Investment Minister Khalid al-Falih said that SIPA "will be a strong supporter of the investment system in its quest to achieve the objectives of the National Investment Strategy by attracting and developing national and foreign investments."

The minister continued that the cabinet's decision would enhance all activities and services related to investment promotion and further boost partnerships between local and foreign investors.

"The establishment of SIPA would also bring about an integrated approach to investment between government agencies," he said.

The minister noted that the launch of SIPA is made possible by the Kingdom's first National Investment Strategy, which seeks to unleash the potential of the Kingdom's strong market fundamentals and the breadth and depth of opportunities created by Vision 2030.

Attracting investments

Public policy expert Akram Jadawi explained that the decision to establish the new authority is a step that reflects the Saudi government's excellence in supporting NIS and achieving the goals of Vision 2030.

Jadawi told Asharq Al-Awsat that the decision came to achieve the future vision planned by the state in an important sector of the national economy.

He added that the government attaches great importance to the investment sector in attracting foreign investors and capital to the local market, which will be reflected in the growth and prosperity of the Saudi market.

Modifying the systems

Economist Fahd bin Jumaa told Asharq Al-Awsat that the establishment of SIPA came at a time when the country was experiencing a qualitative leap in all sectors and was modifying many of its systems to motivate foreigners to enter the local market.

Jumaa explained that this move promotes the Kingdom as an attractive destination for international brands.

The expert noted that the Kingdom markets itself and its investments globally to achieve its ambition based on Vision 2030.

The new authority aims to prepare plans and programs related to marketing locally and internationally to enhance the attractiveness of investment in the Kingdom and manage the "Invest Saudi" platform.

It also supports partnerships that achieve development goals between local and foreign investors and encourages the marketing the Kingdom's investments.

Investment Opportunities

The Saudi government's strategy will push investment forward at a higher and faster pace by improving the investment environment and increasing its attractiveness and competitiveness.

It will also implement fundamental corrective measures at the regulatory and legislative framework level, identifying and developing investment opportunities and providing incentives for quality investment projects.

The NIS will also drive investment in the Kingdom by enhancing the business environment, increasing investment attractiveness and competitiveness, instigating key regulatory and legislative measures, and connecting investors with investment opportunities.

It offers incentive packages for selected projects and attracts regional headquarters to the Kingdom, not to mention helping local companies position their products and services successfully in regional and global markets.

The NIS complements the investment strategies of various Vision Realization Programs such as the Public Investment Fund Program (PIF), the National Industrial Development and Logistics Program (NIDLP), the Privatization Program, the Financial Sector Development Program, and the Quality of Life Program.

Capital formation

A comprehensive governance framework will ensure the implementation of the strategy through oversight from a new Supreme National Investment Committee chaired by the Crown Prince that will set and approve incentive packages for best investments and develop investment opportunities.

The strategy includes several initiatives, such as establishing special economic zones with competitive regulations and incentives that attract investments in priority sectors.

It also includes a program to transfer strategic supply chains to Saudi Arabia and acquire a market share in supply chain components; diversifying funding options which include developing new financing solutions for the private sector to promote capital formation, as well as the enhancement of "Invest Saudi" as the national platform for presenting and marketing investment opportunities in Saudi Arabia.

Road network development

The cabinet also approved the Public Authority for Roads to enhance the development of road networks in the Kingdom, raise operational efficiency, and improve quality according to the highest technical specifications.

Minister of transport Saleh al-Jasser stressed that the decision enables the ministry to lead the transport and logistics system and supervise the implementation of the national strategy.

Jasser stated that the authority would work on the sustainability of the country's infrastructure and the provision of highly efficient road networks to achieve Saudi international leadership.

It also aims to place Saudi Arabia in sixth place on the quality of roads index, expand connectivity between cities, and facilitate the movement of individuals and goods according to safe and high standards, which contribute to strengthening the Quality of Life and ambitious goals of the strategy.

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COP29 President to Asharq Al-Awsat: We Aim for Fair Climate Ambitions, Value Saudi Efforts

Security personnel walk outside the venue of the COP29 conference. (AP)
Security personnel walk outside the venue of the COP29 conference. (AP)
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COP29 President to Asharq Al-Awsat: We Aim for Fair Climate Ambitions, Value Saudi Efforts

Security personnel walk outside the venue of the COP29 conference. (AP)
Security personnel walk outside the venue of the COP29 conference. (AP)

The appointed president of the UN Conference on Climate Change (COP29), Mukhtar Babayev, emphasized that the conference has a clear vision to advance ambition and empower action toward achieving the 1.5°C target.

“We aim for fair climate ambitions and sustainable financing,” he told Asharq Al-Awsat, pointing to Saudi Arabia’s efforts in addressing critical climate issues.

Azerbaijan will host COP29 starting Monday, with the conference running through November 22, to address the rising threats of climate change. The top priority will be reaching an agreement on a new climate finance target.

On the eve of the meeting, Babayev told Asharq Al-Awsat that the vision involves “enhancing ambition” by having parties submit Nationally Determined Contributions, National Adaptation Plans, and biennial transparency reports as signals of commitment and guidance on mutual support.

Babayev, who also serves as Azerbaijan’s Minister of Ecology and Natural Resources, added that empowering action requires increased climate financing from multiple sources to turn ambitions into concrete actions. Key goals include establishing a fair, ambitious climate finance target, finalizing Article 6 implementation, reforming multilateral development banks to address climate efforts more effectively, and mobilizing the private sector to play a key role, he underlined.

Article 6 is a core component of the Paris Agreement, focusing on the development of carbon markets, where countries, companies, and individuals can trade carbon credits.

Babayev also noted that COP29 has launched its action program, with initiatives to advance various issues beyond the formal negotiations.

“Much of our strategy builds on past progress and prior commitments, from the Paris Agreement to the global stocktake,” he said. “By working closely with parties, including Saudi Arabia, the Gulf Cooperation Council, and the Middle East and North Africa, we hope to make real strides this year.”

Geopolitical tensions

Babayev acknowledged that geopolitical tensions present ongoing challenges to global climate action.

However, he said COP29 provides an opportunity to unite countries around a shared goal: addressing climate change.

“As COP29 president, our strategy centers on diplomacy, inclusivity, and practical solutions to ensure that political issues do not hinder progress,” he explained. Climate change affects all countries, creating common ground for cooperation.

Vulnerable nations

Babayev highlighted the COP29 presidency’s commitment to prioritizing the needs of small island developing states and the least developed countries, as they are disproportionately affected by climate change despite contributing the least to global emissions.

“In COP29 presidency consultations, we presented a vision based on two parallel pillars: enhancing ambition and empowering action, with climate finance as a top priority. Reaching an agreement on a fair, ambitious new climate finance target, or the new collective quantified goal, is essential for addressing the severe climate impacts facing frontline communities, including small island developing states and the least developed countries,” he said.

Collective quantified goal

Babayev underscored the new collective quantified goal as a key priority at COP-29, saying: “The top negotiation priority for the COP29 presidency is reaching agreement on a fair and ambitious new climate finance target.”

He continued: “We know the needs are in the trillions, but perspectives differ on how to achieve this. Realistically, public sector contributions and mobilization appear to be in the hundreds of billions. The new target should also include detailed qualitative elements, and we’ve seen progress in terms of access, robust transparency arrangements, structure, and a ten-year framework.”

Upholding commitments

Ensuring that past commitments are honored is a top priority for the COP29 presidency, according to Babayev.

“Transparency is essential to mutual trust within the UNFCCC process, and the COP29 presidency has emphasized enhancing transparency, with biennial transparency reports crucial for tracking progress on commitments and assessing financial gaps and needs,” he explained.

Azerbaijan will lead by example by submitting its own biennial transparency reports ahead of COP29, and Babayev encouraged other parties to do the same. “We are creating a platform for parties to demonstrate their commitment to transparency and publish their biennial transparency reports on time,” he added.

Loss and damage fund and additional pledges

Recognizing COP29’s role in securing additional pledges and enhancing funds to better support vulnerable communities, Babayev stated: “The COP29 presidency is committed to addressing these concerns directly. We recently made substantial progress in Baku and are proud of the role we have played so far.”

He explained: “At the third meeting of the Loss and Damage Fund Board, held in Baku, we took significant steps to establish the financial groundwork for disbursements starting in 2025. Hundreds of millions already pledged will provide practical support to the most vulnerable communities, and we will use COP29 as a platform to call for additional contributions to further strengthen the fund.”

Babayev also acknowledged the contributions of Saudi Arabia and the Middle East and North Africa region, noting that Saudi Arabia has played a vital role through its leadership of the Arab negotiating group, representing the region’s views and priorities on the global stage.

“We appreciate the efforts of our partners in Saudi Arabia and the Middle East and North Africa in addressing the critical climate issues affecting us all,” he said.

Reflecting on his meeting with Saudi Energy Minister Prince Abdulaziz bin Salman in Jeddah earlier this year, Babayev noted: “We discussed opportunities for collaboration on climate action and how we can work together most effectively to achieve the goals and principles of the UNFCCC and the Paris Agreement.”

He welcomed Saudi Arabia’s initiatives to address climate change, including renewable energy use, emissions management, and carbon reduction and removal efforts such as the Saudi Green Initiative and the Middle East Green Initiative, along with circular carbon economy practices, technologies, and other national and regional programs.