Saudi Ministry of Investment: Closing 49 deals worth $925 mln in 2Q

The Saudi Ministry of Investment announced the signing of a number of new investment deals in various sectors, such as the advanced industries sector, construction, real estate activities, information and communication technology, the tourism, the entertainment, and the sports sector. This reflects the success of the national investment strategy in attracting more investment flows to the Kingdom.

The second quarter of 2022 witnessed the signing of 49 investment deals worth more than $925 million, supported by the ambitious goals of the National Investment Strategy, and these deals are expected to create about 2,000 new job opportunities. These deals also include an agreement worth $133.3 million between the Saudi Ports Authority and “DB World” UAE, to establish a modern logistics zone in Jeddah Islamic Port, and a deal with investments estimated at $37 million, led by the global finance giant “MasterCard” in the Saudi e-commerce company “Hyperpay”, to expand the digital payment system in the Kingdom.

The “Investment Updates” report touched on other deals, the most important of which are strategic agreements with the Swiss pharmaceutical company, Novartis, to develop biotechnology in the Kingdom, and investments worth $50 million by the Saudi Aramco Center for Entrepreneurship “Wa’ed” for the “One” platform for Islamic financial technology. And a deal from Ma’aden to build the world’s largest solar-powered bauxite ore refining plant to extract alumina and support the aluminum industry. The report also analyzes macroeconomic indicators and highlights investment opportunities available to local and foreign investors.

Al-Falih, Minister of Investment, referred to the impact of government plans on investment deals and figures, saying: “The National Investment Strategy is an incentive to achieve the goals of Vision 2030, increase the contribution of the private sector to GDP by 65%, and increase foreign direct investment to 5.7% of GDP. Despite the current conditions the world is going through, we are seeing strong interest from global investors in various industries to partner with the Kingdom.”

The investment opportunities in the tourism sector, which is one of the fast-growing sectors in the Kingdom, were highlighted in the “Investment Updates” report for the second quarter, as well as the ambitions of the national tourism strategy. Al-Falih added that: “Cooperation between the National Investment Strategy and the National Tourism Strategy will see the development of a strong and attractive tourism product, and while the global tourism sector is still recovering, many investors in the tourism sector show a strong interest in the Kingdom’s potential.”

The tourism sector in the Kingdom is witnessing global interest, as a result of the opportunities available in mega and mega projects. The Red Sea Development Company signed deals in May with hospitality groups The Ritz-Carlton, Hyatt and Rosewood to develop luxury resorts. A number of major global investors in the field of hospitality, such as: “Radisson” and “Hilton”, announced their aspiration to open 20 and 59 new hotels in the Kingdom, respectively. Saudi Airlines announced that it will add 94 new destinations to attract visitors to the Kingdom.

In general, the “Investment Updates” report reviewed the economic diversification efforts in the Kingdom within the framework of Vision 2030, the reforms that the National Investment Strategy and the new corporate system worked on. Exclusive with His Excellency the Minister of Tourism Ahmed Al-Khatib, in addition to interviews with the largest entities in the tourism sector, which include: the Tourism Development Fund, the Saudi Airlines Group, the Red Sea Development Project, and the Diriyah Gate Development Authority. The report contains exclusive interviews with major investors and businessmen from the companies “MasterCard”, “Google Middle East” and “Khushaim and Partners”.