Saudi Launches its National Investment Strategy

Today, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister, and Chairman of the Council for Economic and Development Affairs, announced the launch of the National Investment Strategy (NIS), a crucial enabler for achieving Vision 2030. The NIS will play a pivotal role in the Kingdom's economic transformation plan, as envisioned by His Royal Highness five years ago during its initial introduction. He stated, "Our country holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues." Additionally, His Royal Highness emphasized that the Kingdom aims to leverage its strategic geographical position, investment power, and central position in the Arab and Islamic worlds.

The NIS is expected to drive the growth and diversification of the Kingdom's economy, working towards several of Vision 2030's goals. These include increasing the private sector's contribution to GDP to 65%, raising the contribution of Foreign Direct Investment (FDI) to GDP to 5.7%, increasing the contribution of non-oil exports to GDP from 16% to 50%, reducing the unemployment rate to 7%, and positioning the Kingdom among the top ten economies in the Global Competitiveness Index by 2030.

During the launch of the National Investment Strategy, His Royal Highness Prince Mohammed bin Salman stated that the Kingdom is embarking on a new investment era, offering more and better opportunities for Saudi and international private-sector investors. He emphasized that investment is a key pathway to achieving the ambitions and aspirations of Vision 2030, including economic development, diversification, sustainability, technology transfer, localization, infrastructure development, improved quality of life, job opportunities, and upskilling of the human resources.

His Royal Highness added that the National Investment Strategy is designed to empower investors, provide investment opportunities and financing solutions, enhance competitiveness, and clarify the partnership between the public and private sectors. The NIS will establish comprehensive investment plans for various sectors, including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare.

To achieve the ambitious investment goals, His Royal Highness highlighted the combined efforts of entities such as the Public Investment Fund and large Saudi companies through the Shareek Program, along with further domestic and international investments.

Looking back at the achievements made during the first phase of Vision 2030, His Royal Highness expressed pride in the progress made and reaffirmed the commitment to pave the way for a bright future with a diversified and sustainable economy. The NIS is seen as a means to realize these objectives, and His Royal Highness is confident in the ability to reach the ambitious targets and meet the aspirations of the people.

The announcement concluded with an emphasis on the importance of investment in driving economic growth and sustainable development under Vision 2030. It was stated that more than $3.19 trillion will be injected into the national economy through investment activity by 2030, with the Shareek program initiatives contributing $1.3+ trillion, the Public Investment Fund providing $799+ billion, and the remaining $1+ trillion generated by investments facilitated by the NIS. Additionally, $2.6+ trillion is expected from government spending and $1.3+ trillion from private consumption spending during the next decade, resulting in a total injection of $7.1+ trillion in the next ten years.

As a result of these efforts, the investment contribution to GDP is projected to increase from 22% in 2019 to 30% by 2030, propelling the KSA's economy to become one of the 15 largest in the world. Furthermore, the NIS is expected to boost annual FDI flows to $103+ billion and increase annual domestic investment to $453+ billion by 2030.

The NIS will also enhance the business environment and increase investment attractiveness and competitiveness in the Kingdom. It will achieve this by implementing key regulatory and legislative measures, connecting investors with investment opportunities, providing incentive packages for selected projects, and attracting regional headquarters to the Kingdom. Moreover, it will aid local companies in successfully positioning their products and services in regional and global markets.

The National Investment Strategy complements the investment strategies of various Vision Realization Programs, including the Public Investment Fund Program, the National Industrial Development and Logistics Program, the Privatization Program, the Financial Sector Development Program, the Quality of Life Program, and other national strategies.

To ensure the successful implementation of the strategy, a comprehensive governance framework will be established with oversight from a new Supreme National Investment Committee, chaired by His Royal Highness the Crown Prince. This committee will be responsible for setting and approving incentive packages for superior investments and developing investment opportunities.

The strategy includes several initiatives, such as establishing special economic zones with competitive regulations and incentives to attract investments in priority sectors, transferring strategic supply chains to KSA, and diversifying funding options by developing new financing solutions for the private sector to promote capital formation. Additionally, the "Invest Saudi" platform will be enhanced to serve as the national platform for presenting and marketing investment opportunities in Saudi Arabia.


Business & Economy