The Saudi Ministry of Investment (MISA) has released its Q2 Investment Highlights Report.
The report focusses on the deals that have been signed over the last quarter, placing them within the Kingdom’s broader economic context before homing in on Tourism as a particular area of growth.
Key macroeconomic indicators in Saudi Arabia remain positive. In Q2, the Kingdom recorded 11.8% year-on-year real GDP growth, 4.2% y-o-y increase in FX assets, and a 24% y-o-y increase in industrial production.
Investment markers are also positive with 24% increase y-o-y in FDI inflows and a 673.4% rise in foreign investment licenses issues when compared to Q2 2021. Within these licenses, wholesale and retail trade dominated the growth, seeing a 1450.3% increase in Q2 2022 when compared to Q2 2021.
The report then moves to tourism, highlighting the crucial role it will play in diversifying the Kingdom’s economy. An overview of some of Saudi Arabia’s ambitious projects are given, alongside progress updates. Key developments include 50% completion of the Red Sea development phase 1, a wide range of new air routes launching from Riyadh, and the success of the Future Hospitality Summit, held in Riyadh on 24th and 25th May.
Following is a summary of how the regulatory environment has shifted over the past quarter. Attention is rightly paid to the new Companies Law which offers new a new framework through which greatly simplifies the registration and administration of companies in the Kingdom, enhancing governance and streamlining routes to investment. Saudi Arabia’s rise in competitiveness is also highlighted, with the Kingdom now ranking 7th in the G20 and 24th globally, a rise of eight places from 2021.
Key deals underpin diversification in the Kingdom and the report therefore gives an overview of these, with a comprehensive overview of how the landscape has developed in the last quarter. These deals span all sectors, from agreements between the BBC and local TV producers to Mastercard’s significant leading role in the $36.7 million round in Saudi Fintech HyperPay. Importantly however, attention is drawn to how Saudi Arabia’s mega and giga projects are driving opportunities for SMEs.
Finally, the report reviews recent investment events in Saudi and across the world, before turning towards practical guidance on how to engage further in the country.
To read the full report, follow this attached link.
