Saudi Ministry of Investment to maintain records of private sector overseas investments
RIYADH: Saudi Arabia's business environment received a regulatory boost after the Saudi Ministry of Investment launched a new initiative to take stock of the private sector's direct foreign spending.
Some local newspapers have reported that the move is part of a broader effort to help investors and companies expand globally, particularly in signing bilateral investment treaties.
Investment Minister Khalid al-Falih said his ministry focuses on regulating and developing domestic and foreign investments, promoting their components and protecting investors.
“The Ministry will do what is necessary to achieve its objectives, including establishing a database of investments and their indicators in the Kingdom as a unified platform and primary reference material, without compromising the capacities and responsibilities of other institutions. “We have the right to do whatever it takes to seek information related to the Ministry's capacity to provide relevant information, data and reports in coordination with relevant authorities with the aim of providing the necessary support to investors.” Al-Fariha said.
He emphasized the important role of private sector participation in this study, noting that private sector involvement will help shape future policies, identify opportunities, and strengthen Saudi Arabia's position as a global economic power. .
As part of this effort, the ministry has developed a detailed questionnaire to record foreign direct investment by private companies.
The survey asks for information on various aspects, such as company name, year in which the investment was initiated, country and city of investment, sector name, investment amount in dollars, partnership or ownership percentage, and other notes. . foreign investment.
This strategic move by the ministry is part of Saudi Arabia's broader efforts to diversify its economy and strengthen its presence in the global economy.
It aims to strengthen Saudi efforts to enable the private sector to explore and exploit international investment opportunities, in line with broader economic goals and vision.
The Ministry has demonstrated a strong obligation to strengthen the Saudi business environment through various initiatives. One of its most notable efforts was the initiative to establish regional headquarters, which failed to achieve its goals.
In an interview with Bloomberg in November 2023, Al-Falih said that the number of licenses issued to companies for the establishment of regional headquarters has exceeded the Saudi target of 160 by the end of the year.
He added that more than 200 international companies from various sectors such as energy, technology, healthcare and hospitality are currently based in Riyadh.
Prominent companies that have moved to Saudi Arabia include Northern Trust, Bechtel and PepsiCo from the US, and IHG Hotels and Resorts, PwC and Deloitte from the UK.
