Riyadh, The Minister of Investment Eng. Khalid bin Abdulaziz Al-Falih affirmed that investment is at the core of Vision 2030 and reflects the will and determination of the Kingdom under the leadership of the vision, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense to motivate the private sector to contribute to economic diversification and the development of the domestic product and achieving the goals of Vision 2030.
To mark an introductory meeting on the national investment strategy, Eng. Al-Falih addressed today a group of economists, specialists and media professionals saying that the Kingdom, since the launch of the vision has worked to implement fundamental reforms in the legislative and regulatory system to make the Kingdom’s economy more competitive and sustainable, and it has achieved tangible results through the largest historical transformation in the Saudi economy.
The Minister of Investment explained that the general goal of the National Investment Strategy is to increase the quality and volume of investments in the Kingdom, which contributes to advancing economic development and diversifying it within the framework of Vision 2030, as the Kingdom aspires to become one of the 15 largest economies in the world by increasing the Kingdom’s Gross Domestic Product (GDP) to 6.4 trillion riyals.
The strategy aims to achieve cumulative investments of more than 12 trillion riyals by 2030, including 5 trillion riyals from (Shareek) partner program initiatives and projects, 3 trillion riyals from the Public Investment Fund dedicated to local investments and 4 trillion riyals from investments by national and international companies diversified under the strategy’s umbrella.
Eng. Al-Falih explained that the strategy is based on a solid base for the Kingdom’s economy with its distinguished strategic location, rich natural resources, pioneering investment power and young human resources, as it is also based on a comprehensive analysis and diagnosis of investment conditions in the Kingdom.
He said that all these factors contributed to the crystallization of the strategy’s objectives of more than doubling the gross domestic investment in fixed capital formation to reach 1.65 trillion riyals, and raising net foreign direct investment flows to 388 billion riyals annually by 2030, an estimated increase of 20 times to reach to 5.7% of GDP.
Al-Falih pointed out that achieving these goals requires a comprehensive development package defined by the strategy, which is based on four essential pillars: developing investment opportunities, targeting different types of investors, diversifying financing options and enhancing competitiveness.
The Minister of Investment explained that given the current investment situation, it is planned to implement the national investment strategy through two tracks, the first includes short and medium-term initiatives to stimulate investment at a faster pace and address the most important challenges facing the investment environment, while the second track includes sustainable and long-term programs and initiatives focusing on reforms and the structural solutions to develop the investment system in the Kingdom and the economy in general in a way that supports the local and international investor and enhance the Kingdom’s competitiveness.
On the programs and initiatives related to the strategy, the Minister of Investment said that the number of initiatives and programs reaches 40 executive initiatives that provide qualitative investment opportunities for the private sector in a number of sectors and in all regions of the Kingdom and for all investors, including the initiative to accelerate priority investment deals, through providing appropriate incentives and accelerating partnership between the public and private sectors and privatization programs, in addition to launching a Supply Chain program, linking the investment platform to all investment opportunities in the Kingdom, along with launching special economic zones with appropriate and stimulating legislation and providing distinguished services to major strategic investors, including local and international ones, and establishing a regional center for start-up companies to promote entrepreneurship in the Kingdom.
Al-Falih stressed that the strategy represents a common link for a number of new initiatives with existing initiatives such as the Partner Program and the Program to attracting Regional Headquarters within a comprehensive plan between the investment system and all relevant government agencies.
On the supervision and implementation of the strategy and its initiatives, the Minister said that the Supreme National Investment Committee chaired by HRH the Crown is supervising the implementation of strategic programs and initiatives, pointing out that there are two committees affiliated to the Supreme Committee: the Committee for Inventory and Development of Investment Opportunities and the National Incentives Committee, in addition to the Investors Council, which aims at direct and institutional communication between investors and decision makers from government agencies.
The Minister of Investment concluded his speech during the meeting by emphasizing that increasing investments is a pillar to achieve the economic and social goals of Vision 2030, and the Kingdom is committed to carrying out all the necessary reforms to achieve its ambitious goals.
Source: Saudi Press Agency