Saudi Arabia Records Highest Int’l Investments in 10 Years

Invest Saudi logo (SAGIA)
Invest Saudi logo (SAGIA)
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Saudi Arabia Records Highest Int’l Investments in 10 Years

Invest Saudi logo (SAGIA)
Invest Saudi logo (SAGIA)

Foreign investments in Saudi Arabia saw a 54 percent increase in 2019, compared to the number of licenses issued in 2018, after registering 1,130 new international companies in 2019, announced Saudi Arabia General Investment Authority (SAGIA).

SAGIA issued a report on investment developments in the Kingdom, coinciding with the launch of the World Economic Forum’s (WEF) activities in Davos between January 21 and 24.

India, US, China, UK, France, Egypt, and Jordan were among the top countries investing in Saudi Arabia in 2019.

Leading growth sectors include construction, manufacturing and ICT, especially that demand increased in these industries alongside infrastructural development, driven by the development seen in the Kingdom in line with Vision 2030.

During 2019, investors established 193 new construction, 190 manufacturing, and 178 ICT companies.

Reports showed 100 new UK companies and 82 US companies were set up in Saudi Arabia compared to 24 for both countries in 2018.

India’s share of the market increased dramatically from 30 companies established in 2018 to 140 in 2019.

The last quarter of 2019 was the most active during the year, as the number of new international companies that started investing in Saudi Arabia increased to 305, compared to 238 companies during the same period in 2018.

SAGIA governor Ibrahim al-Omar said the country is undergoing a remarkable economic transformation that attracts investors and empowers the private sector, noting that the positive growth seen in 2019 is a significant milestone towards Vision 2030.

Regarding local and international partnerships, Omar revealed that one of the Authority's most important goals in attracting foreign investments is the localization of technology, knowledge transfer, and job creation.

The Kingdom’s growing foreign investment results from the sweeping economic and social reforms made throughout 2019, aimed at improving the business climate and attracting investment.

The World Bank recently praised the impact of these reforms on an international level, placing Saudi Arabia as the world’s top reformer after it jumped 30 places in its “Doing Business 2020” report.

The Authority launched a marketing and media campaign “Invest Saudi” to introduce investment opportunities and reforms of the Saudi investment environment, as part of the activities of the World Economic Forum.

Events organized by the authority in cooperation with its public and private partners in Saudi Arabia include a business dinner in which more than 100 decision-makers and major international investors meet with their Saudi counterparts to discuss investment opportunities in the Kingdom.

They will also review developments in the investment environment and related reforms, as well as campaigns to promote investment in Saudi Arabia through the major advertising platforms in Davos.



Saudi PIF Completes $7 bln Inaugural Murabaha Credit Facility

The Public Investment Fund (PIF) logo
The Public Investment Fund (PIF) logo
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Saudi PIF Completes $7 bln Inaugural Murabaha Credit Facility

The Public Investment Fund (PIF) logo
The Public Investment Fund (PIF) logo

Saudi Arabia's Public Investment Fund (PIF) completed on Monday a $7 billion inaugural murabaha credit facility.
In a statement, PIF said the credit facility is supported by a syndicate of 20 international and regional financial institutions.
PIF head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division Fahad AlSaif said: “This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia”, the Saudi Press Agency reported on Monday.
This financing complements PIF’s successful sukuk issuances over the past two years, the statement added. It also underpins PIF’s strong financial position, as well as its best-practice approach to debt financing.
PIF is rated Aa3 by Moody’s with stable outlook and A+ by Fitch with stable outlook. PIF has four main sources of funding: capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments.