Saudi Arabia Simplifies Investment Rules to Attract More Foreign Capital
Saudi Arabia has announced new business rules aimed at increasing transparency and simplifying the process of investing in the kingdom, according to Bloomberg.
The updated investment law strengthens investors’ rights by guaranteeing the rule of law, fair treatment, and the freedom to transfer funds without delay. The country’s Investment Ministry stated that foreign investor licenses will be abolished and replaced with a streamlined registration process.
“The law confirms Saudi Arabia’s interest in creating a favorable and safe environment for investors,” said Investment Minister Khalid Al-Falih.
The reforms are expected to come into force in early 2025 and aim to attract more than $100 billion in foreign direct investment (FDI) annually by 2030 as part of efforts to develop new industries.
In 2023, FDI inflows totaled just over $19 billion, above the $17 billion average for 2017-2022 but below last year’s target of $22 billion. The kingdom attracted $4.5 billion in the first quarter of 2024 and is targeting $29 billion inflows for the full year.