Investment Guide Saudi-Arabia

published on 26 May 2021

The desert state of Saudi Arabia was known in the past for having achieved its wealth mainly through oil production. Over the past few years, the Kingdom continuously develop in many sectors and has become a very attractive destination for foreign investors due to its steady economic growth, even during the covid-19 pandemic.

Despite a difficult year 2020, foreign investment in Saudi Arabia reached a new high since data collection began. A total of 1278 new licenses were issued, 13% more than in 2019 and 73% more than in 2018. The Kingdom owes that upswing particularly to the country's many mega-projects. In addition to the "Red Sea Project" and the tourism project "AMAALA", the construction of the planned city "NEOM" and the related "Saudi Vision 2030" should be highlighted. The aim of "Saudi Vision 2030" is to initiate even more (foreign) investment, expand market entry opportunities for the private sector and increase their contribution to the gross domestic product (GDP) from 40 % to 65 %. At the same time, achieving the goals of "Saudi Vision 2030" is intended to expand and attract the labor market, especially for Saudi Arabia's very young population.

Saudi Arabia's goals still go far beyond economic growth. Saudi Arabia is soon to become a popular destination for tourists. Visitors from 49 countries (including Germany) can obtain the new tourist visa online or upon arrival at the airport. It is an annual visa, which entitles to a total, not necessarily contiguous, stay of 90 days. In addition to the mega-projects already mentioned, other leisure and tourism projects are being planned, including major international sporting events and theme parks.

Overall the Kingdom of Saudi Arabia plans to modernize its business and economic sectors and attract corporations and foreign investors to the country thanks to the promising infrastructure already in place in Riyadh and the young, highly educated population. Some major companies, such as PepsiCo. or Tim Horton's, recognized the country's potential already and moved their regional headquarters to Riyadh.