https://arab.news/n9atm
RIYADH: Saudi Arabia issued 14,321 investment licenses in 2024, reflecting a 67.7 percent year-on-year increase and underscoring the Kingdom’s growing appeal as a business hub.
A report from the Ministry of Investment showed that 4,615 licenses were issued in the fourth quarter of 2024, marking a 59.9 percent increase compared to the same period the previous year.
According to the ministry, the surge highlights Saudi Arabia’s position as a leading investment destination, offering competitive advantages and a stable, supportive environment for businesses.
The report confirmed that this figure does not include licenses granted under the Kingdom’s Tasattur anti-concealment initiative.
Despite regional tensions, Saudi Arabia’s stable political environment and proactive economic reforms continue to attract investors.
The government’s commitment to economic diversification and reducing dependence on oil revenues has been a key factor in strengthening investor confidence.
The Ministry of Investment previously reported that Gross Fixed Capital Formation — a key indicator of investment activity — grew 7.4 percent year on year in the third quarter of 2024.
This increase was primarily driven by an 8.3 percent rise in fixed capital formation within the non-government sector, along with a 2.3 percent uptick in government investment.
The consistent growth in private-sector investment reflects rising confidence among multinational corporations, reinforcing Saudi Arabia’s efforts to attract foreign direct investment and diversify its economy as part of Vision 2030.
According to a previous Invest Saudi report, the sectors with the highest number of licenses issued since the launch of Vision 2030 include manufacturing, construction, professional and scientific services, as well as wholesale and retail trade, and information and communication technology.
These industries have become key drivers of Saudi Arabia’s economic diversification strategy, highlighting the success of ongoing efforts to position the Kingdom as a regional hub for business and innovation.
Saudi Arabia has launched various initiatives to attract investment and solidify its status as a regional business hub. A key element of this strategy is the Regional Headquarters Program, which encourages multinational companies to establish operations in the Kingdom.
The program provides 30 years of tax relief, including zero percent corporate income and withholding tax on RHQ activities, along with a 10-year exemption from Saudization requirements.
Additionally, the top three RHQ executives receive premium residency at no cost, further enhancing Saudi Arabia’s appeal to global corporations.
In October, Saudi Investment Minister Khalid Al-Falih announced the Kingdom had already surpassed its Vision 2030 target of attracting 500 companies to Riyadh, with 540 making the city its regional base.
Beyond this program, the government has taken steps to simplify investment processes. Initiatives include the Tourism Development Fund, launched with an initial capital of $4 billion, and the Kafalah program, which provides loan guarantees of up to $400 million.
These efforts aim to stimulate private investment in tourism, entertainment, healthcare, science, technology, and renewable energy.