Saudi Arabia issues 812 foreign investment licences in 9M 2020

Riyadh City

Saudi Arabia’s Ministry of Investment issued 812 new licenses to foreign companies in the first nine months of 2020, compared to 840 licenses a year earlier.

The number of foreign investment licenses rose 20% year-on-year (YoY) in Q1 2020 to 350 licenses, before falling by 47% YoY in Q2 2020 to 165 licenses – the first quarterly drop in three years. The number of licenses rose 20% YoY and 96% quarter-on-quarter (QoQ) in Q3 2020 to 306 licenses.

In Q3 2020, foreign investments with full ownership represented 68% of total license, while projects in participation with local investors accounted for 32%.

The ministry said, during the first nine months of 2020, the Saudi economy showed clear signs of resilience despite the challenges faced by the global economy since the outset of the COVID-19 pandemic.

It added that most economic indicators showed continued resilience of the Saudi investment environment.

The highest number of foreign investment licenses in 9M 2020 were granted to emerging sectors, including education, financial services, and housing (282 licenses). The industrial and manufacturing sector came second with 155 licenses followed by the information and communication technology (ICT) with 99 licenses.

India topped in terms of new foreign investment projects in the Kingdom with 79 projects. Egypt came second with 68 projects, followed by the US (64) and the UK (63).

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