The “Summer 2021” Investment Brief, released by the Ministry of Investment, highlighted a rise in the number of investment licenses issued in the second quarter of 2021, with approximately 575 new licenses issued, Joint ventures with Saudi companies accounted for the largest share of licenses in the second quarter, accounting for 46% of all new licenses, which led to a year-over-year increase in new investments in the Kingdom of 20% for the second quarter of 2021 compared to the same period last year.
Updates on the Transportation and Logistics Sector
The report highlighted the most significant developments in the transportation and logistics sector, which is a key component of the Kingdom’s journey toward achieving Vision 2030, based on the Kingdom’s regional and global role as a hub connecting international trade routes due to its strategic location at the crossroads of three continents, as well as investment opportunities in the transportation and logistics sector.
The report addressed investment opportunities in the transportation and logistics sector, including: the development of a complex of temperature-controlled warehouses in the Second and Third Industrial Cities in Jeddah, and the development of a facility for manufacturing railroad tracks and wheels to meet the growing demand for the Kingdom’s rail system, noting that the Kingdom is distinguished by its exceptional geographic location at the crossroads of the three continents—Asia, Europe, and Africa—which grants it strategic advantages, particularly in the transportation and logistics sector, leading to easy access to markets.
$12.4 billion infrastructure deal
The report covered the most significant investor developments across various sectors, highlighted new foreign investment projects, and showcased investment opportunities on the “Invest in Saudi Arabia” platform.
The second-quarter 2021 report highlighted investors" achievements, most notably Saudi Aramco’s signing of a $12.4 billion infrastructure deal with an international consortium of investors, as well as major investment projects in the tourism, energy, entertainment, industry and manufacturing, mining and minerals, education, financial services, food and beverage, healthcare and life sciences, entrepreneurship and innovation, and retail sectors.
Highlights of Major Projects
The report outlined the following major projects: NEOM and King Abdullah University of Science and Technology (KAUST) are entering into a joint venture to create the world’s largest coral reef park; NEOM and Tabuk Fisheries have signed a memorandum of understanding to develop the largest fish farm in the Middle East and North Africa region; Red Sea Development Company secures a $3.76 billion loan and the first green credit facility denominated in Saudi riyals, and the Al-Ula Master Plan offers $15 billion in investment opportunities.
The report highlighted investment opportunities in the Kingdom, including: a $117 million seaside tourist resort in the ”Tourism and Quality of Life“ sector, a video game development studio with an investment of $17 million in the ”Information and Communications Technology“ sector, and a silicon smelter with an investment of $140 million in the ”Mining and Metals" sector.
The Intersection of Investment with Vital Sectors
The report began with an opening address by His Excellency the Minister of Transportation and Logistics, Engineer Saleh bin Nasser Al-Jasser, in which he emphasized that the Kingdom of Saudi Arabia places the transportation and logistics sector at the heart of its efforts to achieve Vision 2030, as the Kingdom’s wise leadership recognizes the importance of this sector and its intersection with numerous other fields, From Hajj and Umrah to tourism, through industry and trade, and connecting the Kingdom’s major and mega-projects with one another, the transportation and logistics sector plays numerous roles.
