Saudi Arabia’s Investment Minister Khalid Al-Falih speaks at the Bloomberg New Economy Forum in Singapore on Wednesday, November 8, 2023.
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Saudi Arabia’s Investment Minister Khalid al-Falih dismissed skepticism about the kingdom’s plans to diversify the economy, with Riyadh touting “green-backed” investment opportunities to attract foreign financing.
“Many people doubt that the vision, the ambition, the breadth, depth and comprehensiveness of it, and the development of a country like Saudi Arabia that has been so dependent on commodities businesses like oil for decades, can do it.” Saturday “What do we want to achieve with Vision 2030,” Falih told CNBC’s Steve Sedgwick at the Ambrosetti Forum in Cernobbio, Italy. “
As one of the Middle East’s largest economies and a key U.S. ally in the region, Saudi Arabia has been stepping up investments to realize Crown Prince Mohammed bin Salman’s 2030 economic diversification vision plan, which covers 14 mega projects, including the Neom Industrial Park.
Under the move, Riyadh seeks to transition away from its historical dependence on oil revenues – IMF see now rises until 2026, then begins to decline—and hope In 2030, attract capital flows to the domestic economy to exceed US$3 trillion and drive annual foreign domestic investment to US$100 billion.
Eight years after realizing Vision 2030, the kingdom is now “stronger and more committed” to the plan and has implemented or is on the verge of completing 87 percent of its targets, a Saudi minister said on Saturday. Critics of the plan have previously questioned Riyadh’s ability to successfully meet its goals by the deadline.
In recent years, Saudi Arabia has been working hard to open up its market and improve its business environment. reform its investment and labor laws – but also sets out less popular requirements for companies Establish regional headquarters Received government contracts in Saudi Arabia.
The number of foreign investment licenses issued by Saudi Arabia nearly doubled in 2023, the International Monetary Fund noted government data Net foreign direct investment flows increased by 5.6% year-on-year in the first quarter.
However, concerns remain about the potential uncertainty and unpredictability of Saudi Arabia’s foreign investment legal framework and its dispute resolution system. Falih insisted that Saudi Arabia enjoys predictability and domestic political and economic stability.
“Green support”
Saudi Arabia’s Investment Minister said part of Riyadh’s offer to foreign investors is Saudi Arabia’s “Green Support” initiative, which aims to decarbonize supply chains in the renewable energy region.
“Green underpinnings basically say you need more high-energy processing (and) value-added manufacturing in areas where materials and energy are located,” Falih said, adding that Saudi Arabia has already achieved this goal logistics, capital and infrastructure.
Under Vision 2030, the world’s largest oil exporter aims to achieve net-zero emissions by 2060. But questions remain about its decarbonization commitments.
Riyadh and other members of the OPEC oil alliance have repeatedly called for the use of both hydrocarbons and green resources to avoid energy shortages during the global transition to net-zero emissions.
Some climate activists also critical Saudi Arabia promotes solutions such as carbon capture and storage (CCS) technology as a smokescreen to boost its lucrative oil business.
As part of its “green backstop,” Saudi Arabia sets out to “address global supply chain resiliency” and “build a new global economy, as we bring copper, lithium, cobalt, and semiconductors,” Falih stressed. Shortage, in the process of green fertilizers and green chemicals, we also need to pay attention to other key materials, namely rare earth metals.
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