Saudi Arabia stands to be the most populous and one of the wealthiest nations in the Middle East, it is the core of the Islamic and the Arab world, and it produces the world’s finest quality oil, making it the biggest oil producing nation! Let’s see the factors of how to invest money in Saudi Arabia.
Its location is in the curve of Europe, Asia, and Africa, making it a natural bridge. The Kingdom of Saudi Arabia links the people and products around the globe.
The Kingdom is fully committed to developing the investment environment and is encouraging private sector growth, as a way of reducing the country’s dependence on oil and increasing employment opportunities for the country’s booming population.
The Saudi government offers various incentives to foreign investors eager to know that how to invest money in Saudi Arabia and below are 5 attractive opportunities.
The technological modernization is becoming an important area of attention for foreigner investors in Saudi Arabia. Companies like Google, Apple and Snap are interested in having platforms in Saudi Arabia. The kingdom is very committed to getting the benefits from technology in areas like education and in projects such as NEOM – a five hundred billion US dollar technology-focused megacity.
The country is looking to expand its existing economic sectors and create new ones, and there is a selection of large-scale projects launched and progressing this year, both the public and private sectors are driving major schemes in the kingdom.
“The Kingdom of Saudi Arabia is second to the UAE now, in terms of the number of constructions done in the area of the country, expected in the middle east region this year, with Saudi Arabia believed to attain the score of approximately 27% of all regional construction agreements in 2018”, as stated to a paper published last month by Dubai research house, Ventures Onsite.
We know that Saudi Arabia is a desert and it is dependent on imports to meet 70% of its food requirements and in the past, the agriculture of Saudi Arabia has drastically deteriorated.
The government has taken actions in aiding for the process of conversion of large deserted areas into agricultural fields. Not just that, but also, the government has come up with major irrigation projects, and has replaced the human labor with industrial mechanical powers which help in progressing the country in the agricultural field, making all the previously barren areas cultivatable land!
The Saudi Arabian General Investment Authority (SAGIA) announced that foreigners can set up and own a 100% engineering businesses. The requirements are limited to only two conditions: The foreign entity must have a 10-year track record in business, and it must already have a presence in at least four other countries, so this means only established multinationals can apply, and this is a sensible measure designed to provide high-quality engineering firms in the Kingdom.
The population in KSA is expected to grow significantly over time. As a result, it is foreseen that health care spending will increase dramatically with the demand for more hospital beds. Saudis who are working in the private sector can no longer have access to free treatment in government hospitals, and they must have private health insurance which is provided for by their employers. This applies for expatriate workers, whose employers also provide private health insurance for them and their dependents in KSA.
There is a high demand for healthcare services, and it is continuously increasing in KSA, which is largely due to many reasons such as a fast-growing population, rising life expectancies, increasing per capita incomes; and a high incidence of lifestyle-related diseases.
Trading in Foreign Exchange
Tadawul which is the only securities exchange in the country and is supervised by the Capital Market Authority has opened its doors to foreign investees. Qualified Foreign Institutions (QFI) scheme, which allows foreign institutions to buy stocks directly. Also, direct foreign access is available through exchange-traded funds and swaps via member trading firms. The above-mentioned explanation might have answered the question of how to invest money in Saudi Arabia.
In conclusion, now is a good time to start exploring for the ways of how to invest money in Saudi Arabia as the country is targeting to reach the world’s top 10 most competitive nations, attracting more international investors.
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