The Saudi Cabinet approved on Sunday an updated investment law, with the aim of attracting foreign investors, develop the competitiveness of its investment environment and contribute to supporting economic diversification.
The new system, which will enter into force in early 2025, includes many advantages, most notably enhancing investors’ rights through fair treatment, protecting intellectual property and freedom to manage investments and transfer funds smoothly, promoting transparency and clarity in procedures in line with leading practices, and contributing to creating a reliable investment environment.
Economic and academic analyst at King Faisal University Dr. Mohammad bin Dalim Al-Qahtani told Asharq Al-Awsat that the updated investment system comes after more than 800 economic reforms and intensive workshops over the past six years.
He added that the system would constitute a model to be followed in the coming years by many countries, as it takes into account challenges facing foreign investments and the means to diversify processes and methods of attracting investments.
Al-Qahtani said the updated system includes protection for all intellectual, material and moral property, as required by the Kingdom’s regulations, in addition to removing obstacles facing investors.
The economic analyst stressed that Saudi Arabia offers many investment opportunities in the field of agriculture, industry, financial services, human capital, innovation, and environmental services, in addition to exploration in the fields of energy such as gold.
The Kingdom also seeks to attract investments that transform the country’s rich resources and energy into national industries, he remarked.
According to Al-Qahtani, the Saudi investment map features valuable opportunities estimated at USD3.3 trillion, equivalent to more than SAR 12trillion, distributed among 15 sectors.
He expected the opportunities, presented by the Saudi Ministry of Investment, to have an impact on the gross domestic product of more than USD7.5 trillion by the end of the current decade. It will also contribute to creating more than 3 million direct and qualitative job opportunities, in addition to about two million indirect job opportunities until 2030, he stated.
The economic analyst added that when the target of current investment opportunities is achieved, more than USD5 trillion in new openings will be generated during 2040.
