RIYADH: Saudi Minister of Investment Khalid Al-Falih said the number of companies that have relocated their regional headquarters to Riyadh has exceeded 780, underscoring the Kingdom’s growing appeal as a global business hub, Al-Eqtisadiah reported.
Speaking during a panel session at the Future Investment Initiative in Riyadh, Al-Falih noted that investors in the Saudi Stock Exchange, or Tadawul, have achieved an annual compound return of 11 percent since the 1980s, calling it a key indicator for those seeking long-term investment opportunities in the Kingdom.
Private sector contribution
Al-Falih said Saudi Arabia aims to increase the private sector’s contribution to gross domestic product to 65 percent, highlighting a decline in the economy’s reliance on oil activities — from more than 90 percent in 2015 to 68 percent in 2024.
He emphasized that family businesses account for about 95 percent of the Saudi economy, adding that the Kingdom welcomes global family enterprises not only for their capital, but also for their innovative investment ideas and international networks.
On small and medium-sized enterprises, the minister said they currently contribute 20 percent to the Saudi economy, with a goal of reaching 35 percent, adding: “We have solutions to finance these companies.”
FDI growth and mega projects
Al-Falih reiterated that Saudi Arabia’s mega-projects are progressing rapidly, adding that foreign investment in the Kingdom has quadrupled since the launch of Vision 2030.
He said the Kingdom’s economic trajectory has become clearer under the Vision framework, with 90 percent of foreign investments now flowing into non-oil sectors, reflecting a decoupling of the economy from oil prices.
Source: www.arabnews.com