Wondering what is the National Investment Strategy Saudi Arabia? In our blog series on various government initiatives in Saudi Arabia, the next one is Saudi National Investment Strategy. Curious to know what the Saudi Arabia National Investment Strategy is? Read the blog to know further. Happy reading!
What is the National Investment Strategy?
National Investment Strategy (NIS), is an initiative of the Kingdom of Saudi Arabia to increase the quality and quantity of investment in the country thus boosting economic development in Saudi Arabia and achieve Vision 2030 goals, across priority sectors like domestic and international sectors.
The main goal of the National Investment Strategy Saudi Arabia is to boost the economic growth of the country, thus driving more job opportunities for Saudi citizens, and reducing Saudi Arabia’s dependence on oil exports and oil revenues.
The major aim of this program is to triple the investment in Saudi Arabia from 2019 to 2030 by increasing the investment from 22% of GDP in 2019 to 30% in 2030. The program also plans to boost FDI from 20x in 2019 from SAR 17bn to 388bn in 2030 and drive new investments in emerging sectors.
What is the Main Entity Responsible for Implementing the Saudi National Investment Strategy?
The Ministry of Investment is the main entity in Saudi Arabia responsible for implementing the National Investment Strategy Saudi Arabia. Various government institutions work together to achieve intended coordination between various entities to make the kingdom of Saudi Arabia an investment friendly nation.
NIS and Vision 2030
The Saudi National Investment Strategy is combined with various other Vision Realization Programs along with other national strategies, like:
- Quality of Life Program
- Privatization Program
- Financial Sector Development Program
- The Public Investment Fund Program
- The National industrial Development and Logistics program
Sectors To Gain from National Investment Strategy Saudi Arabia
Saudi Arabia National Investment Strategy, is a comprehensive plan to leverage the economic growth of the country. Though NIS plans for an overall financial growth of the country, there are some main sectors that will get exclusive benefit from the ambitious Saudi National Investment Strategy. They are:
- Manufacturing
- Tourism
- Renewable Energy
- Digital Infrastructure
- Transport and Logistics
- Healthcare
Four Pillars of National Investment Strategy Saudi Arabia
The National Investment Strategy Saudi Arabia has four pillars, and each one has independent goals under which many programmes and
Initiatives are planned. As there are differences between investment opportunities in Saudi Arabia and required reforms to implement the same, the NIS is delivered in 2 tracks. The first includes short to medium term initiatives, and the second one focuses on sustainable and long term initiatives.
The major 4 pillars of Saudi Arabia National Investment Strategy are:
Investment Opportunities
Develop and accelerate investment opportunities in all economic sectors in the country, by launching Supply Chain Attraction Program, finding investment opportunities for each sector and connecting with Invest Saudi.
Investors
Increase the participation of investors in the investment system, by engaging with private sectors and increasing the scope of Shareek program by enhancing the cooperation of large Saudi companies in achieving national investment objectives.
Financing
The major objective of this strategic pillar is to remove financial barriers to investment options for investors and diversify their scope. This is tried to achieve by expanding the scope of financial partnership between the government and the private sector companies.
Competitiveness and Enablers
This pillar aims to create an attractive investment environment for local and foreign investors. The major initiatives planned to achieve this is by launching four to five Special Economic Zones, thus establishing Saudi Arabia’s capability as a strong investment destination.
Excellence of Saudi Arabia on Main Global Indicators
Rank 1 – Depth of Credit Information Index
Rank 1 – Education quality Index
Rank 1 – Edelman Trust Index 2021
Rank 3 – Protecting Minority Investors Index 2020
Rank 21 – World Happiness Report
30 Minutes – The time required for establishing companies
With the launch of Vision 2030, a significant rise in kingdom’s performance is seen in the following global economic indicators:
- Compared to SAR 570 billion in 2015, 1.5 trillion SAR PIF assets under management in 2020.
- An increase of 9.1% monthly supply in Q2 2021, compared to 2% in 2015
- In Q2 2021, 264% investment licences growth rate, compared to same period in 2015
- Compared to 50% in 2015, 60% of Saudi families own home ownership
- In 2021, a strategic increase of 34% of female participation in workforce, compared to 19% in 2016
- 15.7% of private sector growth rate, in Q2 2021, compared to the percentage of 10 in 2015
- 60% costumes clearance terms
- 54% dwell times of import
Analytix: Your Perfect Business Partner for Investment in Saudi Arabia
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Conclusion
Clear with what is the National Investment Strategy Saudi Arabia?
We hope this blog provided you with a comprehensive answer on Saudi National Investment strategy and how it will attract and help investors for Saudi Arabia.
As a business setup company in the heart of Saudi Arabia for more than a decade, we are well aware of the new government initiatives and what this means for local peoples.
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