THE MINISTRY OF INVESTMENT OF SAUDI ARABIA (MISA)
The ongoing transformation of Saudi Arabia under the Vision 2030 plan is unlocking new opportunities at an unprecedented pace. The Ministry of Investment of Saudi Arabia (MISA) is facilitating access to these opportunities by developing a vibrant cross-government investment ecosystem, while supporting businesses throughout their investment journey.
Through a network of dynamic business centers across the Kingdom, MISA partners with local and international businesses of all scales and sizes—from startups to blue chip multinationals—to help make investing in the Kingdom as streamlined and simple as possible.
MISA takes a lead role in improving Saudi Arabia’s overall business environment, commissioning multiple market intelligence studies every year and developing local opportunities for joint ventures.
INVESTMENT MINISTRY STRATEGIC PRIORITIES
- Achieve a new benchmark in the Investment Environment.
- Unleash the Kingdom’s economic potential.
- Convey the Kingdom’s value proposition and foster strategic relations.
- Excellence in customer care.
- Excellence in performance.
SAUDI US TRADE AND INVESTMENT
- Saudi Arabia’s Vision 2030 lays out a path for increased trade and investment with the United States.
- Saudi Arabia is 12th largest trading partner of the U.S. while the U.S. is the second largest trading partner of Saudi Arabia.
- U.S. exports to Saudi Arabia in 2016 totaled $18 billion. Total bilateral trade between the two countries reached $35 billion in 2016.
- The U.S. has the highest share of FDI stock in Saudi Arabia.
- Approximately 10,400 jobs were created in the U.S. as a result of Saudi investments.
- In April 2017, the U.S. Chamber of Commerce hosted the U.S.-Saudi Arabia CEO Summit to facilitate discussions on a new partnership for job creation under Saudi Vision 2030.
WHY INVEST IN SAUDI ARABIA
There are many strategic benefits to establishing a presence within the Kingdom. Listed below are several key considerations that support the decision to establish a presence, ranging from market access through to positive regulatory environment.
.01
MARKET ACCESS
Saudi Arabia is one of the largest markets in the region with a population of 30.7 million (2014) and an annual population growth of 3.5 percent.
.02
INCENTIVES AND COMMITMENT
Access to industrial loans and equity partners such as the Public Investment Fund (PIF) and the Saudi Industrial Development Fund (SIDF) and the Saudi Industrial Investments Company.
.03
INFRASTRUCTURE
Supply of Industrial land, commercial real estate and utilities at very competitive prices, such as King Abdullah Economic City, MODON, Royal Commission, King Abdullah.
.04
EDUCATION AND RESEARCH
Supply of highly educated workforce – as part of the King Abdullah Foreign Scholarship Program, the government provides US$2.4b a year to fund students for foreign education.
.05
POSITIVE REGULATORY ENVIRONMENT
- 100% foreign ownership in key sectors .
- Exemption of customs duties between members of GAFTA .
- Rewarding tax system, 20% corporate tax with ability .
It is worth noting that, over the next 10 years, major investment opportunities in Saudi Arabia amount to $6 trillion, including $3 trillion investments in new projects that are within the framework of the opportunities provided by Vision 2030. The purpose is to unleash the Kingdom’s untapped capabilities and establish growth promising sectors. That 85% of the this huge economic program will be funded by the Public Investment Fund and the Saudi private sectors. It also ought to be noted that Saudi Arabia remains keen to international cooperation with business communities around the globe in these promising investment opportunities. After all, the Kingdom promises development, supports regional stability, preserves the energy market supply, keen to establish security and peace and enhance global economic cooperation.