“If You Build It, They Will Come”: Prospects for Foreign Direct Investment in Saudi Arabia
Foreign direct investment flows into Saudi Arabia look set to pick up, but they are still likely to fall short of Vision 2030’s ambitious targets.
Foreign direct investment flows into Saudi Arabia look set to pick up, but they are still likely to fall short of Vision 2030’s ambitious targets.
While Gulf sovereign wealth funds have long invested in promising technology-focused firms, these investment vehicles are increasingly underpinning ambitious plans to reposition Gulf countries as global hubs for advanced technologies.
Aramco should be able to sustain its higher dividend payout through 2025, but beyond this it will be increasingly dependent on higher oil revenue.
The transfer of Saudi Aramco equity helps grow the PIF but could leave a hole in the 2024 government budget.
Saudi Arabia’s Public Investment Fund is likely to become the world’s largest sovereign wealth fund by the end of the decade, but raising the resources to fund its ambitious domestic investment program may increase economic and financial risks.
The combination of slowing growth trends and persistently ambitious development plans is likely to increase regional economic competition.
Riyadh has charged back into the development limelight in recent months, highlighting the capital’s central role in Saudi Arabia’s ambitious economic transformation agenda.
Amid a global financial slump, government reforms in the Gulf Arab states have helped stock markets achieve a remarkable boost in market capitalization.
For Saudi Arabia, PPPs represent a critical means to accelerate major projects and attract investment, but they may highlight weaknesses, such as workforce limitations and lack of expertise to execute certain goals.
Gulf Arab states are yet again watching on the sidelines as other powers shape their present and future strategic environment.
Learn MoreThrough its careful examination of the forces shaping the evolution of Gulf societies and the new generation of emerging leaders, AGSIW facilitates a richer understanding of the role the countries in this key geostrategic region can be expected to play in the 21st century.
Learn More