03/09/2014 00:57 AST
Amid Saudi Arabia’s strong economic growth, development diversification programs and attractive investment policies, the governor of Saudi Arabian General Investment Authority (SAGIA) has urged French investors to come and “succeed in their second home.”
Opening a Saudi investment exhibition in Paris on Tuesday, with the participation of 15 government agencies, SAGIA Governor Abdullatif A. Al-Othman said in his speech that “Saudi Arabia is of the top countries in the region that are witnessing a revolutionary era in the advancement, transparency, and efficiency of its e-government services. And on the light of this, we are, from our side at SAGIA, constantly working on the improvement of our value proposition to investors.”
He pointed out that the average transaction duration for new licenses at SAGIA is 16 days and 1 day for renewals – and has a fast track service of 5 days for processing of only three documents.
Moreover, citing the Kingdom’s investor-friendly policies, he noted that the “average time for industrial land handover ranges between one month to two months, and we are continually improving the visa process which now avails business visitors visas within 48 hours. And yet we are working together as governmental entities on utterly abolishing time and Inefficiency as barriers for businesses.”
As a proof of the Kingdom’s move to open up to foreign investors, Al-Othman highlighted the fact that in the region, Saudi Arabia is the only country “allowing 100 percent ownership in most businesses, free movement of capital, and a pro-investor legal system including recently established enforcement courts and the enactment of arbitration law.”
He said that ongoing global FDI (foreign direct investment) trend is that countries building strategies to attract FDI in additional to capital for reasons that are core for achieving economic development and growth. “But in the Kingdom, investment appears with a different scenario, for we look favorably on investments that contribute to our economy in terms of diversification, knowledge transfer, job creation and enhancing the competitiveness and integration of key sectors,” the SAGIA governor noted.
However, he added “it must be said that our recent reviews of our licenses and performance of investments have revealed some concerning facts. Ninety percent of FDI came from less than 5 percent of the licenses. Thirty five percent of the licenses are in contracting activities that do not seem to be sustainable. Therefore, in order for us to continue our journey of diversification and sustainable economic growth, we need partners and quality investors like you.”
The Kingdom is globally recognized for its continuous success in implementing sound policies and regulations that led to its sustained economic growth, as it is the third fastest growing economy in the G20, he said.
Over the past decade, the Saudi economy saw a growth rate in the average of 6.5 percent annually. Total investment is 21 percent of GDP 52 percent of which is by the private sector. The average annual capital expenditure in the Kingdom is approximately $67 billion, while the Saudi gross domestic product, which tripled over a decade only, is $745 billion. “This led to the Saudi economy being ranked as the 19th internationally according to World Bank, as well as to its improved standing in the international rankings,” Al-Othman said in an attempt to show the favorable investment climate of the Kingdom.
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