Saudi Arabia’s Ministry of Investment (MISA) announced on Tuesday that 306 new international companies were granted investor licences in the third quarter of 2020, up 96 percent quarter-on-quarter as the economy showed signs of recovery from the coronavirus pandemic.
The ministry said the latest figures marked a swift rebound in investor activity after an unprecedented slowdown in Q2, which saw a 47 percent year-on-year decline in the number of licences awarded due to the impact of Covid-19.
It added that the contraction began to reverse in June as the kingdom began to lift lockdown restrictions and scale up economic activity.
Major sources of new foreign investment projects in the third quarter continued to represent a diverse range of global markets and sectors.
Leading growth markets such as India and Egypt (with 30 companies each) and long-term economic partners such as the UK (with 16 companies) were the principal sources of new foreign investors.
Growth in the number of licences throughout the third quarter continued the recovery trend, with each month witnessing a steady year-on-year increase. The highest volume of new licences was recorded in September, which accounted for nearly 40 percent of all licences issued in the quarter.
Over the first three quarters of 2020, MISA issued more than 800 licences, only 3 percent lower than the same period in 2019 and 60 percent higher than the first three quarters of 2018.
Khalid Al Falih (pictured above), Minister of Investment of Saudi Arabia, said: “These latest figures demonstrate that Saudi Arabia retains the long-term confidence of the global investor community into the second half of this year and is achieving steady and positive economic recovery, despite the ongoing impact of the Covid-19 pandemic on the global economy.
“Resilience against a backdrop of global uncertainty is a clear sign that the Saudi opportunity has not changed. We look forward to continuing our support of foreign investors as they access and enjoy the benefits of the kingdom’s emerging opportunities.”
The figures from MISA also revealed a 19 percent surge in manufacturing activities at the end of Q2 as the kingdom’s Industrial Production Index climbed to 118 in July following a downturn of 99 in April.
Point-of-sales data provided by the Saudi Central Bank for Q3 also mirrored the quarterly upswing seen in other areas, with transactions continuing on a positive trajectory and recording a 40 percent year-on-year growth increase despite an overall decline compared to the previous three-month period.
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