Saudi Crown Prince Launches National Investment Strategy, Key Catalyst to Achieve Vision 2030
The Crown Prince of Saudi Arabia, Deputy Prime Minister and Chairman of the Economic and Development Council, Prince Mohammed bin Salman bin Abdulaziz, on Monday announced the launch of the National Investment Strategy (NIS), a key tool to achieve Vision 2030.
The SNI is a catalyst for implementing the Kingdom Vision 2030 economic transformation plan, which was first defined by the Crown Prince when it was launched five years ago: “Our country has strong capacities to investment, which we will use to stimulate our economy and diversify our income. ”. The Crown Prince added that the Kingdom is also seeking to exploit its strengths: strategic geographical position, investment power and place at the center of the Arab and Islamic worlds.
The SNI will contribute to the growth and diversification of the Kingdom’s economy, which in turn will achieve many of the goals of Vision 2030, including increasing the private sector‘s contribution to GDP to 65%. ; increase the contribution of FDI to GDP to 5.7%; increasing the contribution of non-oil exports to GDP from 16% to 50%; reduce the unemployment rate to 7%; and position the Kingdom among the top ten economies in the global competitiveness index; by 2030.
Speaking at the launch of the National Investment Strategy, the Crown Prince said: “Today, the Kingdom embarks on a new era of investment to give Saudi and international private investors more and more opportunities and Investment is undoubtedly one of the main avenues for us to achieve the ambitions and aspirations of Vision 2030, which include economic development, diversification and sustainability; technology transfer and location, infrastructure development, better quality of life, employment opportunities and improving the skills of our human resources, leaving a legacy of prosperity for future generations. “
“The national investment strategy aims to empower investors, provide investment opportunities, provide financing solutions and improve competitiveness. It also clarifies the partnership between the public and private sectors, because our mission is now to open the door to the private sector and allow it to grow and prosper, ”he added.
The crown prince further said that the NIS will develop comprehensive investment plans for sectors such as manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure and healthcare.
He reiterated that Saudi Arabia’s ambitious investment goals will be achieved through the combined efforts of several entities such as the Public Investment Fund and large Saudi companies through the Shareek program, as well as other domestic investments and international.
“Today, we are proud of the remarkable achievements made in the ‘Kingdom of Opportunity’ during the first phase of Vision 2030, under the leadership of the Guardian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud. We will continue our work to pave the way for a bright future, enriched by a diverse and sustainable economy. This strategy is one of the means to achieve this goal, and we are confident in our ability to achieve our ambitious goals and meet the aspirations of our great people, ”said the Crown Prince.
He concluded his announcement by stressing the importance of the investment to stimulate economic growth and sustainable development targeted under Vision 2030. He also pointed out that more than 12 trillion SAR will be injected into the economy. national through investment activities by 2030: Shareek program initiatives will inject 5 trillion SAR, the Public Investment Fund is expected to contribute 3 trillion SAR and the remaining 4 trillion SAR will be generated by investments facilitated by the NEI.
In addition, the economy will receive SAR 10 trillion in public spending over the next 10 years and an additional SAR 5,000 billion in private consumer spending over the same period. This represents a total injection of SAR 27 trillion ($ 7 trillion) over the next decade.
By meeting these targets, the contribution of investment to GDP is expected to increase from 22% in 2019 to 30% by 2030, making Saudi Arabia’s economy one of the 15 largest in the world, and NIS should bring annual FDI flows to SAR 388 billion. and increase annual domestic investment to SAR 1.7 trillion by 2030.
The IRS will also stimulate investments in the Kingdom by improving the business environment, increasing the attractiveness and competitiveness of investments, putting in place key regulatory and legislative measures, putting investors in contact with business opportunities. investment, offering incentive programs for selected projects and attracting regional headquarters in the Kingdom, not to mention helping local businesses position their products and services successfully in regional and global markets.
The NIS complements the investment strategies of various vision realization programs such as the public investment fund program, the national industrial and logistics development program, the privatization program, the financial sector development program and the quality of life program, in addition to other national strategies.
A comprehensive governance framework will ensure the implementation of the strategy through the oversight of a new Supreme National Investment Committee chaired by the Crown Prince which will establish and approve incentive programs for higher investments and develop investment opportunities. ‘investment.
The strategy includes several initiatives such as the establishment of special economic zones with competitive regulations and incentives that attract investment in priority sectors; a program to transfer strategic supply chains to Saudi Arabia and acquire market share in supply chain components; diversify financing options, including the development of new financing solutions for the private sector to promote capital formation, as well as the enhancement of “Invest Saudi” as a national platform for presenting and marketing opportunities investment in Saudi Arabia.