Saudi Gazette report
RIYADH — Minister of Investment Khalid Al-Falih said that foreign direct investment (FDI) has quadrupled in the Kingdom, surpassing its targets. “Around 90 percent of foreign direct investment flowing into the Kingdom is concentrated in non-oil sectors, while other sectors represent only about 10 percent. Forty percent of the Kingdom's budget and expenditures are now financed by non-oil revenues,” he said while speaking at the ninth edition of the Future Investment Initiative (FII9) Conference in Riyadh on Tuesday.
Participating in a dialogue session titled "Leaders of Public-Private Alliances," Al-Falih asserted that Vision 2030 has proven to be a reality, not merely a dream. He also elaborated the Saudi economy's transition away from oil dependence. Al-Falih highlighted the substantial progress and transformation achieved across diverse, high-potential sectors, including advanced manufacturing, technology, tourism, entrepreneurship, deep technologies, and venture capital.
The minister stressed that the Kingdom’s large reserves and high stability have been key strengths, allowing it to successfully overcome significant global obstacles such as the COVID-19 pandemic, oil price declines, and regional tensions.
Al-Falih pointed out that the non-oil economy has grown by 5 percent, and that the past two years have yielded numerous new and promising investment opportunities, specifically artificial intelligence and the acceleration of digital transformation. He confirmed that major national projects are advancing, with some nearing their opening phases.
Al-Falih also underscored the Kingdom’s strong belief in fostering robust government-private sector partnerships and collaborations with foreign investors, emphasizing its commitment to reducing trade barriers.
According to Al-Falih, the Kingdom's GDP has doubled over the past ten years, mostly driven by the non-oil economy. “The Kingdom has already surpassed $1 billion in investments in the startup ecosystem, representing approximately 60 percent of non-governmental investments in the Middle East,” he said.
The minister emphasized that the Kingdom previously relied heavily on oil, “but today 40 percent of budget expenditures are financed by non-oil revenues, reflecting a true separation between the economy and its dependence on oil at the macro and financial levels.”
Al-Falih highlighted that the Kingdom enjoys excellent regulations that are constantly evolving, with the introduction of many modern systems. He explained that the country's geographical location represents a major competitive advantage, along with the strength of its human resources, its large financial reserves, its stable currency peg, and reserves that enable it to withstand shocks.
The minister revealed that the Kingdom possesses strong financial instruments, such as the Public Investment Fund and the National Development Fund, in addition to a strong banking system that provides liquidity and credit to investors. He noted that these competitive advantages come at a time of global uncertainty, while the Kingdom is steadily moving toward growth and economic stability.
Other speakers in the session noted that energy-related sectors are particularly promising and full of innovation that will build a better future for humanity. They affirmed that partnerships between the public and private sectors are crucial to achieving ambitious goals in a shorter timeframe. They emphasized the importance of harmonization between the two sectors to effectively confront challenges and shocks.
The speakers indicated that a high degree of flexibility and operational efficiency would create many promising investment opportunities, bringing balance to the overall market. They also underscored that governments must work to establish clear frameworks for the public and private sectors to pave the way for more cross-country investment opportunities.
