AWWAD AL-AWWAD Deputy Governor for Investment Affairs SAGIA

FDI levels grew an astounding 51 per cent in 2006
SAGIA

A good sign of a nation’s economic health is the amount of foreign investment it can attract. Saudi Arabia’s concerted efforts over the past few years to diversify away from oil and gas, to open up its markets to the private sector, and to create a safe, efficient, and productive investment environment have resulted in a remarkable increase in foreign investment flows.

According to statistics provided by the Saudi Arabian General Investment Authority (SAGIA), investment in 2006 totalled SR68.6 billion (£9.07 billion), up 51 per cent on the previous year. Other positive indicators are the fact that investment from countries other than the U.S., Europe and Japan has risen, and now accounts for nearly half of total figures, and that investment trends are shifting, with sectors such as finance and insurance enjoying a marked leap in foreign interest.

Dr Awwad Bin Saleh Al-Awwad, Deputy Governor of SAGIA, attributes these changes to the organisation’s unremitting implementation of its current goal, which is to make Saudi Arabia one of the top ten most competitive nations in the world by 2010. In his opinion, current FDI inflows are still below optimum targets, given the potential of the Saudi economy, and there is every indication that they will continue to grow over the next few years.

SAGIA already provides a one-stop-shop for potential investors, which in addition to licensing investment projects supplies facilities, information and support services, and acts as the link between businesses and government ministries and organisations. As a new development in its agenda, SAGIA has prepared a comprehensive study on the most competitive public and private investment opportunities available nationwide and across eight economic sectors. With this database providing summarised information on around 400 new openings, SAGIA aims to fulfil its role as matchmaker between opportunities and investors.

Perhaps the most ambitious project in SAGIA’s portfolio is the development of the new Economic Cities, each designed to provide a unique, business-friendly environment that maximises Saudi Arabia’s advantages, including low-cost energy and geographic location.