Why Saudi Arabia

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Meet the Kingdom

 

Saudi Arabia is one of the most populous and richest nations in the Middle East, the heart of the Islamic and Arab world.

 

Located at the convergence of Europe, Asia and Africa, the Kingdom is a natural bridge connecting people and goods around the world, representing a crucial logistic hub for both global trade routes and for business expansions.

 

The Saudi economy has experienced an annual average growth rate of 4% over the past 7 years, supported by a pro-business environment that quickly moves the investors to the heart of the Arabic market .

 

The kingdom  is fully committed to develop the Kingdom's investment environment: tremendous efforts in advancing the business ecosystem have been already made, and new measures aimed at making it easier to do business are already planned  .

When numbers talk

Total Population
32.5 Million
Total Population
Percentage of Youth (Under 25)
Approx. 50%
Percentage of Youth (Under 25)
Population Growth Rate
2.5%
Population Growth Rate
Saudi labor force
5.7 Million
Saudi labor force
Normal GDP
$ 646 Bn
Normal GDP
GDP Per Capita
$ 19,858
GDP Per Capita
Internet Speed
6.7 Mbps
Internet Speed
FDI inward stock
$231 Bn
FDI inward stock

Why Saudi Arabia?

  • Saudi Arabia has launched the Vision 2030 aimed at enhancing its business environment and economic performance, by establishing clear priorities, solid alignment amongst all relevant
    stakeholders, and serious commitments in leveraging private investments

  • The implementation of the Kingdom’s project is detailed by 12 Vision Realisation Programs, acting as unique roadmap for the whole country

  • The new strategy and developments, as well as the positive fundamentals of the Saudi economy, set an unprecedented opportunity for the investors, willing to grow their assets and to succeed worldwide

  • Saudi Arabia’s multiple growing sectors such as entertainment, information technology, and financial services will open new challenges, promising high returns for all investors
  • The government has launched a major privatization program aimed at unlocking state-owned assets and at increasing private investors participation

  • The localization of the value chain, involving both local and international parties, is another building block of the Saudi Arabia's Vision 2030 offering huge opportunities to investors

  • Large-scale and complex projects, globally unique in scope and ambition, have been also launched, with the aim of transforming the Saudi economy and stimulating the growth of the country

  • Government initiatives across different areas such as ease of doing business, social and cultural participation, fiscal balance review show the undeniable commitment of the Kingdom in improving the whole business environment
  • Saudi Arabia enjoys a strategic natural location linking three different continents, creating a central focal point for all international investors

  • The largest Saudi seaport on the Red Sea, for example, captures 80% of maritime flows making the Kingdom a critical logistics hub for all global trades

  • Large efforts are already in place to optimize the transportation network, with the final goal of optimizing local facilities and cross-border interconnections, as well as ensuring the highest level of service for the whole logistics system

  • Key enabler for the realization of the Vision 2030 is the setup of an efficient digital IT infrastructure, which requires private sector collaboration on different areas such as telecommunications, cloud computing, high-speed broadband, and digital transformation
  • Investing in Saudi Arabia means also having the valuable opportunity to take advantage of more than 35 industrial and economic cities, strategically positioned and designed to provide operational competitive advantages such as production synergies, cluster benefits, and scale effects

  • Each city is a special zone operated by a master developer to maximize the investment potential and to deliver considerable supporting infrastructure such as shared services and on-site facilities to investors

  • The supply of industrial land, commercial real estate and utilities at very competitive price is considered a distinctive factor for the Kingdom, compared to other countries worldwide
  • 50% of Saudi Arabia population is under 30 years old.

  • Every year, 400 thousand young Saudis enter the labour market, contributing to strengthen the development, the capabilities and the effectiveness of the national workforce

  • Education is the Government’s second largest spending, confirming the Kingdom’s commitment in investing in the quality of its future leadership

  • The country's recent progress in scientific research is driven by major local universities whose leading approach is to link academic activities to the real needs and opportunities in the market
  • Saudi Arabia is amongst the countries with the lowest level of taxation; as a matter of fact, there is no individual income tax scheme in the country

  • The Kingdom has been ranked among the top safest places in the world, thanks to fewer natural disasters and to the constant efforts in ensuring information exchanges and comprehensive security solutions

  • Ranked number 26 worldwide for quality of the healthcare system, the country enjoys world-class facilities and services

  • New trends like women driving, tourism transformation and cultural expansion will disrupt the quality of life in the Kingdom, stimulating fresh market demand and growing the potential for local and international investment
  • Saudi Arabia enjoys a stable monetary system and a well-capitalized financial sector  (145% monetary total assets to national GDP in 2016 )

  • The average banking sector Tier 1 capital-to-risk-weighted-assets ratio is approx. 17.5% in 2016, characterizing one of the strongest system worldwide in terms of resilience and capital adequacy

  • The Saudi capital  market, Tadawul, is the largest capital segment in the MENA and Turkey region, with a market capitalization of approx. B451$ in 2017 and deep and liquid debt and equity securities

  • Specific regulations and initiatives have been recently implemented by Saudi regulatory entities such as : A) the settlement cycle amended from T+0 to T+2, with securities’ transactions completed after two business days following the transaction execution date, B) the opening of the domestic IPO market to qualified foreign investors, and c) the introduction of NOMU, a parallel equity market with lighter listing requirements serving as alternative platform for all companies to go public

  •  Saudi Arabia intends to expand its stock market to attract more foreign investors and seeks to become an international capital markets hub

 

 

 


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