It’s time to rethink on investing in Saudi Arabia. In this Op-Ed, Wael Al-Nahedh, CEO at Spearvest provides insightful information on fast-changing Saudi Arabia, to be seen as a major investment opportunity for substantial return on investment.
The recent news that Saudi Arabia is planning to attract around $427 billion in investment into the industrial sector sends a positive signal to investors and the wider international business community. The programme is said to include 66 agreements in key sectors such as industry, mining, energy, and logistics services.
The announcement comes at a time of great social change and progress within the country, which has often found itself facing heavy criticism in the Western world. Despite this, social reforms are happening and progress is evident.
The fact remains that right now there are major economic changes in the Kingdom on all levels, enhancing Saudi Arabia’s position as a business-friendly economy that is increasingly open to entrepreneurs and keen to attract external investment partners.
The Saudi economy remains robust, with 2.21% growth in 2018, helped by strong oil sector growth. Increasingly, the country is seeing strong inward investment, with reports suggesting that foreign direct investment into Saudi Arabia reached $779 million in the third quarter of 2018.
As a provider of global financial services, specialising in wealth management, it’s easy to see why so many organisations and individuals view the Kingdom as a major investment opportunity. The recently announced projects (NIDLP) further demonstrates the country’s steady pace and direction towards its ambitious goals within the Vision 2030, something which presents tremendous market opportunities.
Investors can see that the Kingdom is opening up new ventures that can provide a substantial return on investment, with the right partner providing insights and support. There have been further innovations announced within the last few days, with a newly publicised proposal to develop an international energy exploration and production business for the first time, focusing on oil and gas. The country’s energy minister Khalid Al-Falih, chairman of Saudi Aramco told journalists that he believes overseas expansion is critical for the company’s future.
In comments which will delight investors, he said, “We are no longer going to be inward-looking and focused only on monetising the kingdom’s resources.” He added, “Going forward, the world is going to be Saudi Aramco’s playground.”
Additionally, the country has moved forward in its goal to become a major player in the logistics business, with the launch of the King Abdullah Port in Rabigh. The port has been described as a linking point of three continents, Asia, Europe and Africa.
Those who are hesitant about the opportunities on offer should think again. The Kingdom is changing at a rate nobody thought possible, providing exciting new investment opportunities and with it, increased social change.