Arab News, Thursday, Aug 18, 2022 | Muharram 20, 1444
Saudi Arabia issues over 4.4k licenses, attracting $932m investment in Q2
Saudi Arabia: Saudi Arabia has
recorded a massive jump of 673.4 percent in the number of investment licenses,
with 4,455 licenses issued in the second quarter of 2022 in comparison to 576 in
the same period last year, the latest government data showed.
The five leading sectors which accounted for most
of these licenses include wholesale and retail with 2,713, construction with
528, manufacturing with 349, accommodation and food services with 276, and
professional, scientific and technical services with 153 investment licenses,
reveals the Economic and Investment Monitor report by the Ministry of
Investment, known as MISA.
A company willing to engage in financial activity
within the country has to acquire an investment license, which is issued by the
state body of the country— the Saudi Arabian General Investment Authority, known
as SAGIA, in this case.
While Saudi Arabia is pumping huge investments
into the domestic economy from its state coffers, the Kingdom is also pushing to
attract more foreign direct investments and partnerships while enhancing the
business environment within the country as part of a wider diversification
strategy under Vision 2030.
These efforts have seen Saudi Arabia sealing 49
deals in the second quarter of 2022, up from 37 deals in the first quarter,
generating an additional SR3.5 billion ($932 million) in investments and
creating 2,000 new jobs.
When looking at the data, the sectors with the
highest closed deals were the entrepreneurship and innovation sector which had
34 deals to its name, followed by education and training with six deals. The
real estate sector followed that with four deals.
Among the top countries that are investing in
Saudi Arabia, the UK leads the list followed by the UAE, Jordan and the US.
The Kingdom has put forth many efforts to attract
investors to its highly competitive and safe business environment, and the goal
has been achieved, the report stated.
As part of the strategy to offer seamless services
to investors, MISA — since its establishment in February 2021 — has been
offering e-services which have gone up to 42,000 in the second quarter of this
year, up from 18,000 during the same period in 202O.
Moreover, MISA said it helped raise awareness and
draw investors to the diverse Saudi market through organizing and attending more
than 15 events in the second quarter.
Its efforts also included introducing and
incorporating new legislative laws, making Saudi Arabia a great place for
investments, the report added.
These efforts played a part in Saudi Arabia
claiming high ranks highly in various global indicators, such as Global
Innovation Index, Consumer Confidence Index, and Edelman Trust Index, the report
said.
While Saudi Arabia is growing at a massive pace,
it wants to achieve its goals in tandem with the 2030 Vision — the core of which
has been sustainability. The country is focusing on many sustainable and
environmental projects which will continue to attract investors from all over
the world, the MISA report said.
With projects such as the Green Riyadh, the water
desalination, and the Sakaka solar power plant on their way, the report projects
that the future of investments and growth in Saudi Arabia will be promising.