RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman on Monday launched the National Investment Strategy, which seeks to net 388 billion riyals ($103.47bn) in foreign direct investments annually, according to state-run Saudi News Agency.
The kingdom also expects to increase its domestic investment to about SAR 1.7 trillion by 2030 under the new strategy, which aims to further power the country’s economic diversification, report agencies.
“Our country has huge investment capabilities, and we will seek to be an engine for our economy and an additional resource for our country.”
Saudi Arabia, Opec’s top oil exporter, is focused on diversifying the economy under its Vision 2030 programme, which aims to cut its dependence on hydrocarbons and develop local industries and manufacturing capabilities.
The National Investment Strategy, which is one of the main pillars of the Vision 2030 programme, is expected to contribute to the growth of the local economy and diversification of its resources.
As per the strategy, Saudi Arabia’s aim to increase the contribution of the private sector to its gross domestic product to 65 per cent and increase FDI’s share to 5.7 per cent of its GDP.
The strategy also aims to increase the proportion of non-oil exports from 16 per cent to 50 per cent, reduce the unemployment rate to 7 per cent and advance the kingdom to one of the top 10 positions in the Global Competitiveness Index by 2030.
Saudi Arabia also plans to establish special economic zones with competitive regulations and incentives to attract investment in priority sectors. It will also form a programme to transfer strategic supply chains to the kingdom to acquire a market share in supply chain components and diversify funding options for the private sector.
As a result of the strategy, the investment-to-GDP ratio of the kingdom is expected to rise to 30 per cent in 2030, from 22 per cent in 2019. This is expected to help the Saudi economy become one of the 15 largest economies in the world, according to SPA. The next phase of the national investment strategy will include detailed investment plans for sectors, such as industry, renewable energy, transport and logistics, tourism, digital infrastructure and healthcare, the crown prince said.