In today’s world, Saudi Arabia is one of the world’s most attractive countries for the world’s leading investments. At the same time, it enjoys the confidence of many investors, who consider the Saudi economy one of the world’s most dynamic economies to overcome all market volatility.
The follower of economic affairs finds a package of evidence and proofs that confirm the depth and strength of the Saudi economy during the past few decades. However, the modern indicator is the announcement of the largest Saudi budget in the history of the country in 2018, which exceeds the volume of spending trillion riyals, The Kingdom is moving ahead with the realization of Vision 2030. Reducing dependence on oil as the country’s main source of income.
Speaking on investment incentives in Saudi Arabia, the Ministry of Trade and Investment (MTI), on its website, presents a package of reasons for investing in strategic sectors in which Saudi Arabia has a high comparative advantage, which is the heart of the Middle East and North Africa, with a population of 400 million.
The Kingdom ranks 23rd among the 25 largest economies in the world, ranking first in the Middle East and North Africa and ranks 11th in 181 countries in the world rankings in terms of ease of doing business according to the 2010 Doing Business report by the Finance Corporation International Bank of the World Bank.
Saudi Arabia is the largest free economic market in the Middle East, with 25 percent of the Arab GDP. It also has the world’s largest oil reserves, which account for 25 percent of global reserves. It also provides energy to investment projects at the lowest prices. The Kingdom is the ideal destination for energy-intensive projects, in addition to a number of promising natural resources in mining. The geographical location of the Kingdom makes it an easy outlet for the markets of Europe, Asia and Africa. Mechanism as evidenced by its domestic market expansion continues.
At the same time, Saudi Arabia is one of the fastest growing countries in the world, with per capita income expected to rise to $ 33,500 by 2020, from $ 20,700 in 2007.
The Saudi Riyal is considered one of the most stable currencies in the world. There has been no significant change in its value over the past three decades. There are no restrictions imposed on exchange, foreign exchange, capital transfer and profits abroad.
As for the inflation rates in Saudi Arabia is very low, and seeks to sign bilateral agreements with a number of countries in terms of the promotion and protection of investment, and the prevention of double taxation.
There are a number of financial incentives that support the national and foreign investments in the Kingdom, including: Human Resources Development Fund to support the activities related to the rehabilitation and training of Saudi cadres, as well as preferential quotas for natural gas, competitive prices for water, electricity and land services for commercial and industrial projects, And development at King Abdullah University of Science and Technology (KAUST) and King Abdulaziz City for Science and Technology (KACST).
There are also other sources of lending to industrial investments in Saudi Arabia through the Saudi Industrial Development Fund, which provides loans for industrial projects of up to 50% of the project capital, and the program of financing for small and medium enterprises, which follows the Saudi Industrial Development Fund. Small and Medium Enterprises (SMEs) and 75% of the loan amount.
Faced with these hoaxes, the Saudi Fund for Development provides export credit guarantee and insurance services to assist exporters, and the coverage of the document is 90 percent of the value of credit. The Agricultural Development Fund, the Saudi Credit and Savings Bank and local banks have concessional financing programs.
With regard to industrial incentives in Saudi Arabia, this is related to the provision of industrial lands, the provision of services at reduced prices, customs exemptions and other attractive incentives for investment capital.