Abdullah Al Alami*
June 30, 2021
The global economy welcomed Saudi Arabia's initiative for foreigners to own 100% of in Kingdome companies' shares. Investment licenses are issued in line with Saudi Vision 2030 to diversify the economy and strengthen the private sector. Perhaps the next step is to attract expertise and support new investment initiatives in the country.
The Saudi economy has maintained its strength and has proven confidence and resilience. Foreign investors no longer need to partner with a Saudi national to invest or establish a company in Saudi Arabia. The United Nations Conference on Trade praised the increase in foreign investments in the Kingdom during 2020.
Riyadh established an Integrated Logistics Zone to attract foreign investors and establish multinational companies. Global economic reports attest to the Kingdom's success in encouraging multinational investments.
Foreign investment licenses in Saudi Arabia are limited to certain sectors, but guarantee the protection of foreign employees as well their transfer to other jobs. In addition, the Saudi chambers of commerce welcome foreign investors to become board members.
Saudi Arabia recorded a rise in the number of licenses granted to foreign investors in the fourth quarter of 2020 where investment flow grew by more than 20% during 2020. This encourages foreign investors to recycle their savings and establish new projects, which enhance the value of their financial holdings.
