The Kingdom of Saudi Arabia seeks to increase the value of foreign direct investment to 388 billion riyals (106 billion USD) by 2030, compared to approximately 19.7 billion riyals last year, indicating a target to multiply the value by about 20 times over the decade. Today, the Kingdom unveiled its targets as part of the launch by Crown Prince Mohammed bin Salman of the National Investment Strategy, which the Kingdom considers one of the key enablers to achieve Vision 2030.
The Crown Prince stated that the Kingdom aims to reach the list of the world's top 15 economies and increase domestic investment to 1.7 trillion riyals annually by 2030, according to the official news agency of the country. Net foreign direct investment in Saudi Arabia amounted to approximately 15.6 billion dollars (57 billion riyals) in the first half of 2021, compared to about 2.4 billion dollars in the first half of 2020. It stood at around 5.4 billion dollars in 2020 and 4.6 billion dollars in 2019.
The Crown Prince added, "By achieving these targets, the investment-to-GDP ratio in the Kingdom is expected to rise from 22% in 2019 to 30% by 2030, which will contribute to the Saudi economy joining the ranks of the major global economies."
Investment Injection
Crown Prince Mohammed bin Salman emphasized the Kingdom's plan announced in April to inject more than 12 trillion riyals into the local economy by 2030, which includes 5 trillion riyals from initiatives and projects under the Partner Program, 3 trillion riyals from the Investment Fund allocated for local investments, and 4 trillion riyals from corporate investments under the National Investment Strategy.
He added that, in addition to that, the economy will receive an injection of about 10 trillion riyals from government spending through the state's general budget over the next ten years, and another 5 trillion riyals from private consumption spending for the same period, amounting to approximately 27 trillion riyals by 2030.
Public-Private Partnership Programs
Crown Prince Mohammed bin Salman, who is also the Deputy Prime Minister and head of the Council of Economic and Development Affairs, launched in April the program to enhance partnership with the private sector dedicated to local companies, aiming to develop the partnership between the public and private sectors called "Partner," with the goal of supporting local companies and enabling them to achieve a volume of local investments reaching 5 trillion riyals by the end of 2030.
He noted at the time that the Kingdom would witness a leap in investments in the coming years, amounting to 3 trillion riyals, injected by the Public Investment Fund by 2030, in addition to 4 trillion riyals to be injected under the National Investment Strategy.
