The Saudi Arabian General Investment Authority (SAGIA) issued inward investment licenses worth 42.465 billion Saudi riyals ($11.32 billion) for 905 projects over the past two years, confirmed an official release.
Projects involving American investors or partners accounted for SR17.92 billion of the total, making up the single largest bloc, followed by Japan, Germany, the United Kingdom and India. Industrial ventures accounted for 58 percent of the total, with SR 24.66 billion and non-industrial sector accounted for SR 17.78 billion, reported SAGIA's Chairman and Governor, Prince Abdullah bin Faisal Bin Turki Al-Saud.
Experts are predicting a return to the trend of increasing foreign direct investment FDI (Foreign Direct Investment) flow from 2003 after the decline last year, which was precipitated by a slowdown of mergers and acquisition.
Based on the resilience demonstrated by the forces of globalization in the aftermath of September 11, 2001 and the ongoing deregulatory and legislative measures in many countries, the Economist Intelligence Unit (EIU) predicted that FDI flows over the "next five-year period will exceed that of the past five-year period.”
"Our first priority at home was to create a mechanism to issue licenses within 30 days from the date of application. Internationally, we worked to create greater awareness of Saudi Arabia's commitment to continuously improve the investment climate and the increasing investment opportunities in the Kingdom," added Prince Abdullah.
Prince Abdullah explained that SAGIA's efforts to define and recommend measures to improve Saudi Arabia's investment climate covered all major areas of the economy and related government ministries.
The main Investor Service Center in Riyadh has been functioning for nearly two years during which additional centers have been opened in Jeddah, Dammam, Jubail, Yanbu and Medinah. New centers are being established in cooperation with the Chambers of Commerce and other bodies such as the Governor’s Office in Medinah and the Royal Commission for Jubail and Yanbu.
SAGIA is currently in discussions with the Chambers of Commerce to open four more Investor Service Centers in the Kingdom of Abha, Hail, Al-Gurayat and in Al-Qaseem. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
