A look at the number of foreign investment licenses issued in Saudi Arabia in 9M 2019

The Future Investment Initiative (FII) started its third annual edition on Tuesday and is being attended by thousands of delegates from all over the world who have gathered to discuss on a range of rich agenda and issues focusing on the future of global investment.

This year’s three-day event will draw more than 6,000 participants from more than 30 countries, compared with 3,500 participants from 88 countries at FII in 2018. This year’s participants include nearly 300 speakers from 30 countries.

Saudi Arabia is keen to improve the business environment so that private sector could thrive in an attractive investment climate. The Kingdom has launched 13 programs in line with Saudi Vision 2030, in addition to a fiscal reform plan, of which 62 percent has been implemented.

As the FII 2019 kicks off, Argaam takes a look at the foreign investment licenses issued in the Kingdom for the first nine months of 2019 as per the official data available.

According to Saudi Arabian General Investment Authority (SAGIA), Saudi Arabia issued 808 licenses to foreign investors for the first nine months of 2019, up by 64 percent year-on-year (YoY).

Investments which are fully owned by foreign investors accounted for 66 percent of total licenses, while 34 percent went to partnerships with local investors.

The telecommunication and information segment controlled a total of 145 investment licenses during the nine-month period, while the construction sector accounted for 141 licenses.

In January, Saudi Arabia’s King Salman approved the Kingdom’s investment policy principles - based on international best practices – in line with Vision 2030.

The new seven principles aim to boost local, foreign investments, gross domestic product (GDP) and achieve the target economic diversification. 

The investment principles are:

1) Ensure equality between Saudi and foreign investors;

2) Ensure protection of investments;

3) Enhance investment sustainability through clear and transparent procedures to address investor complaints;

4) Provide equal investment incentives, enhance transparency and grant investment incentives on an equal basis;

5) Keep social and environmental standards and ensure investor compliance with Saudi environment, health and safety (EHS) regulations;

6) Facilitate access of foreign technicians, administration employees and their families to foreign investment-related activities;

7) Transfer the knowledge and technology acquired from foreign direct investment (FDI)