Saudi Arabia has recently unveiled a series of new business regulations designed to enhance transparency and simplify the investment process within the kingdom. These changes are part of the country’s broader efforts to attract significant foreign direct investment (FDI) as it diversifies its economy.
The updated investment law strengthens investor rights, ensuring the rule of law, equitable treatment, and the freedom to transfer funds without delays. The Ministry of Investment announced that existing licenses for foreign investors will be abolished, replaced by a streamlined registration procedure.
“The law reaffirms Saudi Arabia’s commitment to creating a favorable and secure environment for investors,” stated Minister of Investment Khalid Al-Falih.
Set to be implemented at the beginning of 2025, these reforms aim to draw over $100 billion in annual FDI by 2030, supporting the development of new industries across the kingdom.
In 2023, FDI inflows reached just over $19 billion, exceeding the average annual figure of $17 billion recorded between 2017 and 2022, though falling short of last year’s target of $22 billion. During the first quarter of 2024, the kingdom attracted $4.5 billion and is now targeting $29 billion for the entire year.