Saudi Arabia has approved an updated investment law aimed at enhancing transparency and simplifying the investment process, as part of its Vision 2030 and National Investment Strategy reforms. The law is designed to attract more foreign capital to support the kingdom’s economic diversification efforts.
The Ministry of Investment announced that the revised law strengthens investor rights by ensuring the rule of law, fair treatment, protection of property and intellectual property, and the freedom to transfer funds without delay. It replaces the previous international investor licensing system with a streamlined registration process and establishes dedicated service centres to expedite government transactions and streamline investment procedures.
Saudi Arabia’s Investment Minister, Khalid Al-Falih, stated that the updated law reaffirms the kingdom’s commitment to creating a welcoming and secure environment for investors, promoting fair competition, and enhancing Saudi Arabia’s status as a global investment destination.
Recent efforts to attract foreign investment have included issuing investor visas, creating special economic zones with lower tax rates, and introducing new civil transaction and bankruptcy laws. These structural reforms have accelerated investment growth, with gross fixed capital formation increasing by 74% from 2017 to nearly $300 billion in 2023.
Saudi Arabia aims to attract over $100 billion in foreign direct investment (FDI) annually by 2030. FDI stock increased by 61% from 2017 to 2023, reaching nearly $215 billion, while FDI inflows surged by 158% to $19.3 billion in 2023. The kingdom secured $4.5 billion in the first quarter of 2024 and is targeting $29 billion in FDI flows for the year.
