Riyadh city
Saudi Arabia’s Ministry of Investment issued 3,386 new investment licenses to foreign companies in the second half of 2021, a rise of 348% year-on-year (YoY).
The number of foreign investment licenses increased by 358% YoY to 2,056 in Q4 2021, the sixth consecutive quarterly increase.
In its report, the ministry said that this increase is due to several factors, which includes the government's efforts to improve the investment environment and enhance investor confidence as the global economies recover from the repercussions of the COVID-19. In addition, a high number of companies that have chosen to move their regional headquarters to Riyadh and the government-led campaign to support small companies and institutions.
The following table illustrates the number of foreign investment licenses issued since early 2016:
|
Foreign Investment Licenses in Saudi Arabia |
||
|
Period |
No. |
YoY change |
|
Q1 2020 |
352 |
+21% |
|
Q2 2020 |
158 |
(46%) |
|
Q3 2020 |
307 |
+21% |
|
Q4 2020 |
449 |
+54% |
|
Q1 2021 |
478 |
+36% |
|
Q2 2021 |
575 |
+264% |
|
Q3 2021 |
1,330 |
+333% |
|
Q4 2021 |
2,056 |
+358% |
The highest number of foreign investment licenses in the second half of the year was granted in the wholesale and retail sector (1,481) followed by manufacturing industries (536).
|
New Foreign Investment Projects by Sector in H2 2021 |
|
|
Sector |
No. |
|
Wholesale and Retail |
1481 |
|
Manufacturing Industries |
536 |
|
Building & Construction |
491 |
|
Hotels & Restaurants |
274 |
|
Academic & Professional Activities |
147 |
|
ICT |
133 |
|
Other Services |
57 |
|
Administrative & Support Services |
51 |
|
Transport & Logistics |
41 |
|
Health and Social Work |
24 |
|
Water Supplies |
23 |
|
Education |
21 |
|
Finance & Insurance Services |
18 |
|
Real Estate Activities |
15 |
|
Arts, Entertainment & Recreation |
14 |
|
Mining & Minerals |
13 |
|
Agriculture, Forests & Fishing |
10 |
|
Electricity & Power |
7 |
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