Saudi Arabia has revamped over half of the 400 foreign direct investment (FDI) regulations, as foreign investment rose in 2020 compared to 2019, said Minister of Investment Khalid bin Abdulaziz Al-Falih.
“We have performed better than most, and ultimately, investors trust a government that provides security to them and the population. Saudi Arabia handled it better than most, as investors want to trust governments that look after them. Saudi Arabia, through our leadership, has shown that,” he stated during the panel discussion at the Future Investment Initiative 2021.
Al-Falih noted that the Kingdom leapfrogged its position globally and many of the FDI indices, emphasizing the focus is now on tomorrow’s sectors and technology such as biotechnology, information, and logistics.
The minister pointed out that digital infrastructure is more important than physical infrastructure, therefore regulating it is the ministry’s number one priority.
Al Rumayyan said: “This is not a normal event, but it is the opportunity to open a new chapter for humanity — the neo-renaissance,” which is the theme of the two-day gathering.
The PIF boss and other investment experts talked enthusiastically about the range of potential investments in the Kingdom under the second phase of the Vision 2030 strategy, but also warned that the global economic situation remained uncertain.
Al-Rumayyan said the division between “those with funds waiting on the sidelines and the working class” was a potential risk for economic recovery in 2021.
That caution was echoed by one of the big investment heavyweights at the opening session, the founder of investment firm Bridgewater Associates, Ray Dalio, who said: “I don’t think equities will be as ebullient as last year.”
Khalid Al-Falih, the Saudi investment minister, was more optimistic, pointing out that foreign investment had risen in the Kingdom in 2020 despite the economic recession caused by the virus.
He called on governments to take on more of the risk of setting up business, as the Saudi government has done. “We have looked at 400 different investment regulations and half of them have been revamped,” he said.
A major theme of the opening day, reinforced by virtually every speaker, was the move toward more sustainable investment, especially in the crucial energy sector.
Prince Abdul Aziz bin Salman, the Saudi energy minister, predicted that the Kingdom would make more progress in tackling climate change in the next decades than many other countries.
“We will enjoy being looked at as a reasonable and responsible international citizen because we will be doing more than most European countries by 2030,” he said.
Arab News