Saudi Arabia's Regional Business Hub Attraction: Over 780 Firms Move HQs to Riyadh
Riyadh surpasses expectations as a global business destination with significant foreign investment in non-oil sectors.
The Kingdom of Saudi Arabia continues to strengthen its position as a global business hub, with Saudi Minister of Investment Khalid Al-Falih announcing that more than 780 companies have relocated their regional headquarters to Riyadh.
This milestone underscores the growing appeal of Saudi Arabia for investors seeking long-term opportunities.
Speaking at the Future Investment Initiative in Riyadh, Al-Falih highlighted the consistent annual compound return achieved by investors on the Saudi Stock Exchange (Tadawul) since the 1980s, which serves as a key indicator of the Kingdom's potential for investment.
The focus on increasing the contribution of the private sector to the gross domestic product (GDP), aiming for 65 percent, reflects Saudi Arabia’s efforts to diversify its economy and reduce dependency on oil activities.
In 2015, oil constituted over 90 percent of the economic activity, which has now decreased to 68 percent by 2024.
Emphasizing the significance of family businesses in the Saudi economy, Al-Falih noted that they account for approximately 95 percent of the economic landscape and are pivotal to the Kingdom's growth.
Small and medium-sized enterprises (SMEs) currently contribute 20 percent to the Saudi economy, with ambitions to increase this share to 35 percent.
The Minister elaborated on initiatives aimed at financing these enterprises to fuel further economic development.
Foreign direct investment (FDI) has seen a significant surge in Saudi Arabia since the inception of Vision 2030.
Al-Falih stated that mega-projects within the Kingdom are advancing rapidly, and foreign investments have quadrupled.
This reflects the success of Vision 2030 in shaping a clearer economic trajectory for Saudi Arabia, with 90 percent of foreign investments now targeting non-oil sectors.
This decoupling from oil prices indicates a shift towards a more sustainable and diversified economy.
Saudi Arabia’s efforts to attract global family enterprises not only for their capital but also for innovative investment ideas and international networks further emphasize the Kingdom's commitment to fostering a robust business environment.
This milestone underscores the growing appeal of Saudi Arabia for investors seeking long-term opportunities.
Speaking at the Future Investment Initiative in Riyadh, Al-Falih highlighted the consistent annual compound return achieved by investors on the Saudi Stock Exchange (Tadawul) since the 1980s, which serves as a key indicator of the Kingdom's potential for investment.
The focus on increasing the contribution of the private sector to the gross domestic product (GDP), aiming for 65 percent, reflects Saudi Arabia’s efforts to diversify its economy and reduce dependency on oil activities.
In 2015, oil constituted over 90 percent of the economic activity, which has now decreased to 68 percent by 2024.
Emphasizing the significance of family businesses in the Saudi economy, Al-Falih noted that they account for approximately 95 percent of the economic landscape and are pivotal to the Kingdom's growth.
Small and medium-sized enterprises (SMEs) currently contribute 20 percent to the Saudi economy, with ambitions to increase this share to 35 percent.
The Minister elaborated on initiatives aimed at financing these enterprises to fuel further economic development.
Foreign direct investment (FDI) has seen a significant surge in Saudi Arabia since the inception of Vision 2030.
Al-Falih stated that mega-projects within the Kingdom are advancing rapidly, and foreign investments have quadrupled.
This reflects the success of Vision 2030 in shaping a clearer economic trajectory for Saudi Arabia, with 90 percent of foreign investments now targeting non-oil sectors.
This decoupling from oil prices indicates a shift towards a more sustainable and diversified economy.
Saudi Arabia’s efforts to attract global family enterprises not only for their capital but also for innovative investment ideas and international networks further emphasize the Kingdom's commitment to fostering a robust business environment.
