Saudi Arabia maintained its third-place ranking in attracting foreign direct investment projects in the Middle East with 75 projects, behind the United Arab Emirates, which ranked first with 302 projects, and South Africa with 116 projects.
The UAE Is the Largest Source of Foreign Investment
This was reported in a 2015 FDI Intelligence report on foreign direct investment. In terms of outbound investment, the UAE emerged as the largest source of foreign direct investment projects in the Middle East and Africa in 2014, with 243 projects, followed by South Africa with 74 projects, while Saudi Arabia ranked third with 30 projects.
Asia-Pacific Most Attractive to Projects
Meanwhile, the Asia-Pacific region—according to the report—as the most attractive destination for foreign direct investment projects, attracting 4,153 projects, representing 34.41% of the total projects, with a total value of $250 billion. The report noted a slight improvement of 1 percent in global capital investments, which reached $649 billion in 2014 from $642 billion in 2013, despite a 1 percent decline in the number of foreign direct investment projects to 12,069.
China Is the Largest Recipient of Capital
China emerged as the largest recipient of capital investments, which totaled $75 billion, representing 11.55% of total investments, while the United States attracted the largest number of foreign direct investment projects, totaling 1,577 projects, representing 13.07% of the total projects.
Saudi Arabia Awaits Global Investments
Given these figures, the Kingdom is expected to attract many global companies over the coming year, particularly in the retail sector, as the General Investment Authority announced this month that it has begun accepting applications from global companies to engage in wholesale and retail trade of their products in the Kingdom at a rate of 100%. In recent days, a joint working group comprising the General Investment Authority, the Ministry of Commerce and Industry, and the Ministry of Labor was formed to implement the decision of the Custodian of the Two Holy Mosques, who directed that foreign companies be allowed to invest in the wholesale and retail trade sector with full ownership, in accordance with conditions and regulations to be established by the relevant authorities.
Among the most important conditions set by the Kingdom for international companies wishing to benefit from the decision is the requirement that investment applications include a detailed proposal for future manufacturing plans with specific timelines, as well as training and Saudization programs and measures to improve the level of services provided tothe public in general.
The measures also include extending investment licenses for up to 15 years, renewable, to support the stability of licensed investment companies in the Kingdom and to enhance opportunities for the localization of these investments, making them a key pillar in achieving the Kingdom’s development goals.
