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Saudi Arabia Signs 100 Investment Deals Worth $4Bn during Q1

Investments increase in Saudi Arabia amid foreigners' interest in the market (Asharq Al-Awsat)
Investments increase in Saudi Arabia amid foreigners' interest in the market (Asharq Al-Awsat)
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Saudi Arabia Signs 100 Investment Deals Worth $4Bn during Q1

Investments increase in Saudi Arabia amid foreigners' interest in the market (Asharq Al-Awsat)
Investments increase in Saudi Arabia amid foreigners' interest in the market (Asharq Al-Awsat)

Saudi Arabia has signed 101 investment deals during the first quarter of this year, amounting to $4 billion.

Supervised by the Ministry of Investment, the deals are expected to provide more than 5,000 new job opportunities.

The Kingdom is the sixth among the G20 economies with the highest foreign exchange reserve.

A recent report issued by the Ministry, a copy of which was obtained by Asharq Al-Awsat, said the Kingdom has one of the fastest recovering economies from the effects of the pandemic, with a 9.6 percent growth in gross domestic product during the first quarter of 2022 compared to the same quarter of 2021.

The report indicated that the Kingdom provided opportunities for investors, making it easier to access untapped sectors by providing an attractive investment environment.

Foreign direct investment (FDI) in Saudi Arabia grew by 257.2 percent to reach $19.3 billion in 2021.

The Kingdom's industrial production index (IPI) continued to rise for the eleventh consecutive month, with a 24.8 percent increase in March, compared to 2021, the highest growth in the past three years.

The report indicated that the IPI increase was primarily driven by a 26.6 percent increase in mining activity after the Kingdom increased its oil production to more than 10 million barrels per day in March.

Foreign exchange reserves maintained their strength during Q1, reaching $45.7 billion in April, making Saudi Arabia the sixth-highest foreign exchange reserves among G20 economies.

The interest of foreign investors in the Kingdom rose to historical levels in the first quarter, with 9,383 new licenses.

This significant increase is due to the Kingdom's efforts to improve the investment environment and increase investor confidence after the global economic recovery in the post-COVID-19 era.

The number of companies that decided to open their regional headquarters in Riyadh has increased, and several small foreign-owned enterprises and institutions want to regulate their commercial status within the anti-concealment law in the Kingdom.

The Ministry of Investment added that after revoking the company licenses that regulated their status, it issued 1.2 thousand investment licenses in the first quarter of this year, a 153.7 percent growth compared to the same period in 2021.

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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.