Saudi Ministry of Investment: Investment licenses jump 673.4% in 2Q

The Saudi Ministry of Investment revealed a strong increase of 673.4% in the number of investment licenses issued during the second quarter of this year compared to the same period last year, reaching 4,455 licenses, compared to 576 licenses, in a new indication of the gradual recovery witnessed by the investment climate in the Kingdom.

In its semi-annual report, “Investment Updates” for the second quarter of this year, the ministry attributed the significant rise to the efforts made to promote foreign direct investment in the Kingdom, in addition to efforts to correct the situation of violators of the anti-commercial cover-up system.

According to the report, wholesale and retail trade came at the forefront of activities in terms of the number of licenses with a growth of 1459.3%, as the activity gained increasing interest from foreign investors to witness the issuance of 2,713 foreign licenses in the second quarter of this year, in line with the Kingdom’s increasing position as one of the most attractive investment destinations in addition to the increasing interest of investors in the activity of wholesale and retail trade, particularly e-commerce, which flourished as a result of enhancing consumer confidence and increasing purchasing power.

The construction activity also witnessed a significant growth of 514% in the number of licenses issued after it witnessed the issuance of about 528 licenses to foreign investors, and the manufacturing sector recorded a growth of 232.4% in the number of licenses, including about 349 foreign investment licenses in the second quarter of this year

The Ministry of Commerce had issued the anti-commercial concealment program within the National Transformation Program to eliminate commercial concealment and reduce the spread of commercial fraud in cooperation with 10 government agencies.

It is noteworthy that the Kingdom recorded unprecedented levels in FDI flows during the year 2021, achieving a growth of 257.2% on an annual basis, and it continued in the first quarter of this year to achieve FDI flows of about 1.97 billion dollars (7.37 billion riyals), recording a growth rate of 1.97 billion dollars. 9.5% on an annual basis.