KSA`s investment level reaches almost USD300bn in 2023

(MENAFN) Saudi Arabia has experienced a remarkable surge in investment, driven by recent pro-investment reforms and measures. In 2023, the country’s gross fixed capital formation reached nearly USD300 billion, reflecting a substantial 74 percent increase. Foreign Direct Investment (FDI) has also seen significant growth, with the total FDI stock rising by 61 percent from 2017 to 2023, reaching approximately USD215 billion. Additionally, FDI inflows have surged by 158 percent, climbing from USD7.5 billion in 2017 to USD19.3 billion in 2023.

Key to this investment boom are several major reforms introduced by Saudi Arabia, including the Civil Transactions Law, the Private Sector Participation Law, the Companies Law, the Bankruptcy Law, and the establishment of Special Economic Zones. According to Khalid Al-Falih, the Saudi Minister of Investment, these legislative changes are pivotal in shaping a favorable investment climate. They provide essential incentives, facilities, and enablers that attract investors looking for a stable and supportive environment.

“The new laws reaffirm Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a leading global investment destination,” Al-Falih stated. He emphasized that these reforms align with the strategic objectives outlined in Vision 2030, which aims to bolster investor confidence and promote growth despite global market fluctuations.

The executive regulations for these reforms are scheduled to take effect in 2025, marking a new phase in Saudi Arabia’s investment landscape. This policy direction aims to provide a robust framework that supports and stimulates both domestic and international investments, reinforcing the country’s role as a prominent player in the global investment arena.

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