RIYADH — Saudi Minister of Investment Fahad Al-Saif stated that foreign direct investment in the Kingdom’s emerging economic sectors posted a surge of 162 percent over the past five years, while total fixed capital formation recorded a jump of 52 percent. Addressing the World Petroleum Congress in Riyadh on Monday, the minister emphasized that the next phase would focus on shifting from expanding investment volumes to enhancing investment quality and productivity, while strengthening the competitiveness of the economy.Attending a panel discussion titled “Saudi Ministerial Dialogue-Vision 2030: Economic transformation and global competitiveness” at WPC, the minister explained that the Kingdom aims to attract a diverse range of investors, whether seeking resources, markets, strategic assets, or greater efficiency and flexibility. This objective will be pursued by building interconnected economic ecosystems and deepening their integration with global value chains. Al-Saif noted that the energy sector accounted for more than 22 percent of total fixed capital formation in the Kingdom, while private-sector participation exceeded 75 percent of investments over the past five years. He pointed out that sectors witnessing accelerated foreign direct investment include tourism, travel and entertainment, advanced manufacturing, innovation and logistics, industry, renewable energy and water. He stressed that developing these sectors requires stronger integration with services, infrastructure and the financial sector. The minister stated that the Kingdom is working to establish integrated industrial clusters, citing the development of an automotive manufacturing cluster in the western region and an interconnected industrial ecosystem in the Eastern Province encompassing shipbuilding, petrochemical industries, ports, pipelines and logistics services. Al-Saif emphasized that boosting productivity and efficiency is a key pillar in strengthening the Kingdom’s global competitiveness in attracting investments. He explained that the infrastructure currently being developed would enhance the performance of both the public and private sectors and further reinforce their competitive edge. The minister underscored the importance of stable economic policies and the continuity of government initiatives in bolstering investor confidence, clarifying that the objectives of Vision 2030 represent a milestone in a long-term economic journey rather than the culmination of the transformation underway in the Kingdom.He pointed out that sustainable fiscal policies have helped strengthen investor confidence by providing a more predictable economic environment while preserving the flexibility needed to adapt to economic and geopolitical developments, trade disruptions and supply chain challenges.
