IBDE

The constitution of Saudi Arabia derives in its entirety from two fundamental sources, the Quran and Sunnah. All legislative regulations are thus fundamentally rooted within this context. The symbolic significance of Saudi Arabia to the Islamic religion is reflected in its holy city, Mekah, considered home by Muslims worldwide. From a financial perspective Saudi Arabia has the capability to become a home for investors in search of exciting opportunities abroad. The fast-growing economy presents a vast array of opportunities for investors as Saudi Arabia moves towards a diverse economy away from the dominant sectors, namely oil and gas. The economic reform along with market liberalisation and a growing private sector make will make Saudi Arabia as one of the most lucrative markets for strategic investment.

Investment Climate

Saudi Arabia is one of the 25 largest economies in the world with around 28 million people within its borders. It has been designated as a ‘High Growth Market’ by UK Trade & Investment and remains the United Kingdom’s largest trading partner in the Middle East. The World’s Bank “Doing Business” report ranked Saudi Arabia 13th out of 189 countries in terms of the overall ease with which business may be conducted making it an attractive prospect for future investors.

Saudi Arabia is renowned for having one of the most stable currencies in the world, the Saudi Riyal. This coupled with one of the most rewarding tax systems in the world, a ‘free labour market’, areas in which Saudi Arabia ranked 7th in the world according to the World Economic Forum, and low inflation rates make investment opportunities in this country all the more appealing. In addition to this the government in Saudi Arabia has spent an enormous $385 billion (USD) on developing its infrastructure over the next 5 years providing further opportunities for foreign investors.

Saudi Arabia and the United Kingdom

Investment opportunities in Saudi Arabia are particularly lucrative for those wishing to support the growth of their businesses in the UK. The UK is the second largest investor in Saudi Arabia after the United States of America. The Saudi government is thus particularly dedicated to ensuring the growth of businesses in the UK through investments in targeted areas of growth. Thus it provides a platform for British investors looking to diversify and expand their business portfolios into foreign markets particularly since Saudi Arabia has over 27 million increasingly affluent consumers.

Investment Sectors

As an emerging powerhouse of the Middle East Saudi Arabia presents investment opportunities in a variety of key sectors including:

·                     Energy

·                     Transport and Logistics

·                     Education

·                     Health

·                     ICT

·                     Life Sciences

The establishment of the Saudi Arabian General Investment Authority (SAGIA) aims to support foreign investors with the application and approval process for investing in the Kingdom. It is the first point of contact for investors looking for further information on what Saudi Arabia has to offer and simply wish to understand more about the process involved but also for those who need further support having decided to invest in the Kingdom.

As an emerging powerhouse in the Middle East, Saudi Arabia provides the perfect opportunity for both experienced foreign investors and those looking to invest abroad for the first time. Its massive spending on the development of infrastructures shows the Kingdom’s intentions to both diversify and expand its economy. The country is thus at the early stages of growth and certainly seems to be heading towards poll position in its aim to become a robust economy that is both stable and attractive to foreign investors.