Retail sector continues to dominate foreign investment licences issued in Saudi Arabia

The number represents a 347.9 percent annual increase compared to the same period in 2020.

Against a favourable economic backdrop and the Saudi government’s ongoing diversification efforts, the ministry said the wholesale and retail sector continued to dominate foreign investment licence issuances (1,481).

The manufacturing and construction sectors claimed the second-and third-highest number of new licences in H2 2021, with 536 and 491, respectively while the accommodation and food sector and professional and scientific sector received 274 and 147 new licences.

MISA said FDI growth has maintained positive momentum, following a record-breaking rise during the second quarter of 2021, with a 23.7 percent year-on-year gain in H2.

It added that the increase in foreign capital inflows illustrates the “growing attractiveness” of the kingdom as an investment destination.

Saudi Arabia’s National Investment Strategy, launched in October 2021, outlines several measures, including creating special economic zones and sector-focused investor incentives, that aims to transform the kingdom into an investment powerhouse and global hub for business and talent.

Khalid Al Falih, Minister of Investment, said: “Global competition for investment is intense – everyone wants to attract the world’s most innovative and entrepreneurial enterprises. To ensure we remain an attractive destination, we intend to establish Saudi Arabia as one of the top ten economies in the World Economic Forum’s Global Competitiveness Index by 2030.

“The private sector will benefit from these measures’ regulatory and legislative reform. It will also benefit from new incentive packages for selected projects, government assistance in connecting with investment opportunities, and increased support with placing products and services in regional and global markets.”