Saudi Investment Minister Khalid Al-Falih confirmed that the Kingdom of Saudi Arabia has made unprecedented qualitative leaps in its investment environment, announcing that the value of foreign direct investments has increased fivefold since the launch of "Vision 2030", in a strong indicator of the success of the economic diversification plans led by the country.
Performance indicators comparable to global economies
Al-Falih's remarks came during a dialogue session held at the "Saudi House" on the sidelines of the World Economic Forum, where he revealed detailed statistics reflecting the strength of the Saudi economy. The minister explained that the Kingdom has not only attracted foreign capital but has also witnessed a doubling of domestic investment, reflecting the Saudi private sector's confidence in the new economic directions.
In comparison with major emerging economies, Al-Falih noted that Saudi Arabia has reached levels comparable to China and India in terms of "capital formation" as a percentage of GDP. This indicator is one of the most important economic benchmarks, reflecting the extent of additions to fixed assets in the economy, such as infrastructure, factories, and equipment, which lays the foundation for sustainable long-term growth.
Vision 2030: The Historic Turning Point
To understand the significance of these figures, one must consider the historical and economic context created by Vision 2030 since its launch in 2016. Prior to the Vision, the Saudi economy relied primarily on oil revenues and direct government spending. However, the National Investment Strategy, a key enabler of the Vision, has worked to liberalize the economy, modernize legislation, and establish special economic zones.
These structural reforms have made the Kingdom an attractive destination for global capital, as it transitioned from an oil-dependent economy to one of building a diversified and competitive economy. Initiatives such as the "Shareek" program and the Public Investment Fund have contributed to strengthening this investment environment.
safe haven for investment
Al-Falih concluded by emphasizing that Saudi Arabia is now one of the world's leading countries in providing optimal access to promising investment opportunities, coupled with a high capacity to manage and mitigate economic and geopolitical risks. This balance between "return and risk" is precisely what international investors seek amidst the volatility of the global economy, thus solidifying the Kingdom's position as a logistical and investment hub connecting three continents.
