Arab News
Arab News, Wed, Feb 05, 2025 | Shaaban 6, 1446
Saudi Arabia’s investment licenses jump 68% to over 14k
Saudi Arabia:
Saudi Arabia issued 14,321 investment
licenses in 2024, reflecting a 67.7 percent year-on-year increase and
underscoring the Kingdom’s growing appeal as a business hub.
A report from the Ministry of Investment showed
that 4,615 licenses were issued in the fourth quarter of 2024, marking a 59.9
percent increase compared to the same period the previous year.
According to the ministry, the surge highlights
Saudi Arabia’s position as a leading investment destination, offering
competitive advantages and a stable, supportive environment for businesses.
The report confirmed that this figure does not
include licenses granted under the Kingdom’s Tasattur anti-concealment
initiative.
Despite regional tensions, Saudi Arabia’s stable
political environment and proactive economic reforms continue to attract
investors.
The government’s commitment to economic
diversification and reducing dependence on oil revenues has been a key factor in
strengthening investor confidence.
The Ministry of Investment previously reported
that Gross Fixed Capital Formation — a key indicator of investment activity —
grew 7.4 percent year on year in the third quarter of 2024.
This increase was primarily driven by an 8.3
percent rise in fixed capital formation within the non-government sector, along
with a 2.3 percent uptick in government investment.
The consistent growth in private-sector investment
reflects rising confidence among multinational corporations, reinforcing Saudi
Arabia’s efforts to attract foreign direct investment and diversify its economy
as part of Vision 2030.
According to a previous Invest Saudi report, the
sectors with the highest number of licenses issued since the launch of Vision
2030 include manufacturing, construction, professional and scientific services,
as well as wholesale and retail trade, and information and communication
technology.
These industries have become key drivers of Saudi
Arabia’s economic diversification strategy, highlighting the success of ongoing
efforts to position the Kingdom as a regional hub for business and innovation.
Saudi Arabia has launched various initiatives to
attract investment and solidify its status as a regional business hub. A key
element of this strategy is the Regional Headquarters Program, which encourages
multinational companies to establish operations in the Kingdom.
The program provides 30 years of tax relief,
including zero percent corporate income and withholding tax on RHQ activities,
along with a 10-year exemption from Saudization requirements.
Additionally, the top three RHQ executives receive
premium residency at no cost, further enhancing Saudi Arabia’s appeal to global
corporations.
In October, Saudi Investment Minister Khalid Al-Falih
announced the Kingdom had already surpassed its Vision 2030 target of attracting
500 companies to Riyadh, with 540 making the city its regional base.
Beyond this program, the government has taken
steps to simplify investment processes. Initiatives include the Tourism
Development Fund, launched with an initial capital of $4 billion, and the
Kafalah program, which provides loan guarantees of up to $400 million.
These efforts aim to stimulate private investment
in tourism, entertainment, healthcare, science, technology, and renewable
energy.