Saudi Arabia is emerging as a global hub for business, and the Ministry of Investment’s recent initiative to revamp the country’s legal system for foreign investors could result in an increase in international businesses by over 50 percent, Sovereign Saudi Arabia said in a statement on Monday.
The appeal of the law states that both foreign and local investment will receive equal treatment as the Kingdom looks to diversify its economy from oil exportation. Over $936 million in funds was recently announced at the Global entrepreneurship Congress 2022 in March to facilitate the access for international companies needed to enter the Saudi market.
Prior to the announcement of the new investment law, the World Bank forecasted that the Kingdom’s GDP would reach $820 billion by the end of 2022, a significant increase when compared to 2020’s forecast of $700 billion.
However, this new investment law will see more foreign investors come into Saudi Arabia and enjoy neutral treatment, leading to an expected spike in business activity that could top the World Bank’s projections, Sovereign Saudi Arabia, an organization with experts in foreign direct investment, said.
This was further solidified during Expo 2020 Dubai, a six-month mega event which brought countries together to showcase the best they had to offer.
Interest in new businesses entering the Kingdom has been catalyzed by the country’s participation in the Expo, which highlighted and consolidated the Saudi 2030 Vision and ambitious economic growth agenda.
“The KSA Pavilion created a new awareness of Saudi Arabia’s business potential to more than 4.6 million visitors and this new Investment Law only adds to the momentum to further reinforce KSA’s position as one of the most globally appealing places to conduct business,” the Managing Director of Sovereign Saudi Arabia Paul Arnold was quoted as saying.
“By legally enforcing the principle of competitive neutrality to public and private investors, this removes any previous commercial barriers-to-entry. Whether you’re looking to expand your company’s presence or launch your brand for the first time, if you have a contract in-hand, it has never been a better time to enter and invest in the Saudi market,” he added.
The new law will grant foreign investors the freedom to manage, sell, and dispose of their economic projects and own any necessary properties, ensuring smoother business operations. It will give both local and foreign investors the full support of all competent government authorities and will ensure that both are subject to the same sectoral approval requirements for registration, licenses, and approvals for permits needed for specific economic activities or zones.