Prime Highlights:
Saudi Arabia has issued over 36,000 investment licenses since the launch of Vision 2030, marking a five-fold increase compared to the pre-Vision 2030 period.
In 2024, there was an 118% growth in entrepreneurial licenses and a 123% increase in permits within the wholesale and retail trade sector.
The Kingdom updated its investment law in August 2024, enhancing protections for international investors, including property rights and intellectual property safeguards.
Key Background:
Saudi Arabia has issued over 36,000 investment licenses since the launch of its Vision 2030 initiative, marking a significant five-fold increase compared to the pre-Vision 2030 period. The development reflects the Kingdom’s growing appeal as a global investment hub, spurred by the government’s Invest Saudi platform, which aims to attract foreign direct investment (FDI) through regulatory reforms and incentives.
In 2024 alone, the Kingdom witnessed an 118% growth in the issuance of entrepreneurial licenses compared to the previous year. The wholesale and retail trade sector saw a remarkable 123% increase in permits during the same period. These figures highlight the growing confidence of both domestic and international investors in Saudi Arabia’s business environment.
A key component of the Kingdom’s efforts to attract investment was the update of its investment law in August 2024. The reforms provided enhanced protections for foreign investors, including guaranteed property rights, fair treatment, and safeguards for intellectual property. The law also ensures smoother fund transfers, boosting the Kingdom’s appeal as a destination for international capital.
Among the sectors driving investment growth are manufacturing, construction, professional services, scientific fields, and information and communication technology (ICT). Additionally, Invest Saudi confirmed that the Kingdom has surpassed its target for regional headquarters set by Vision 2030, with over 500 international companies now establishing their Middle Eastern headquarters in Saudi Arabia.
Notable companies such as Morgan Stanley, Citi Group, BlackRock, and PepsiCo are among those that have chosen Saudi Arabia as their regional base. As part of the initiative, international firms benefit from tax exemptions and other incentives, including a 30-year corporate tax holiday on headquarters activities. The ongoing success of the Invest Saudi initiative aligns with the Kingdom’s National Investment Strategy, which aims to boost FDI from SR17 billion ($4.5 billion) in 2019 to SR388 billion by 2030 and increase investment’s contribution to GDP from 22% in 2019 to 30% by the decade’s end.
