Saudi Arabia is actively seeking to boost foreign direct investment (FDI) from Asia and Europe as part of its broader economic diversification efforts. Ibrahim Al-Mubarak, the Kingdom's Assistant Minister of Investment, outlined the ambitious target of attracting $100 billion in FDI by 2030 during an interview with CNBC.
In August, Saudi Arabia introduced an updated investment law designed to enhance foreign funding inflows. The National Investment Strategy identifies key sectors for investment, including energy, construction, communication, finance, and transportation.
While China remains the largest trading partner of Saudi Arabia, Al-Mubarak noted that FDI from China has not yet reached its potential. The US also plays a significant role as an investor. Al-Mubarak emphasized the Kingdom's efforts to expand its investor base, highlighting growing interest from Asian and European countries.
The new investment law aims to increase FDI by offering better investor protections, including adherence to the rule of law, fair treatment, property rights, and intellectual property safeguards, along with facilitating smooth fund transfers.
Al-Mubarak also pointed out that Saudi Arabia's financial sector presents substantial opportunities for investors. The Kingdom has one of the lowest debt-to-GDP ratios in the G20, and the debt capital market remains underserved. With equity capital in Saudi Arabia representing 78% of the regional market and being the ninth largest globally, the financial sector is viewed as a key enabler for economic growth.