Saudi economy continues to improve, FDIs make up 3% of GDP: Al-Falih

Khalid Al-Falih, Minister of Investment

Minister of Investment, Khalid Al-Falih, said that Saudi Arabia’s economy is improving year after another, despite a decline in global economic growth. Foreign direct investments (FDIs) have become nearly 3% of the Kingdom’s gross domestic product (GDP), expecting these investments to reach 5.7% by 2030.

Al-Falih told Asharq Al-Awsat in an interview, on the sidelines of the World Economic Forum (WEF) in Davos, that efforts to diversify the economy are continuing in full swing. The Kingdom records unprecedented growth, as growth surpassed 10% in the first three quarters of the fiscal year. He expected very strong growth in the fourth quarter and the current fiscal year.

Saudi Arabia does not only focus on the size of investments, but also on their type. The Kingdom attracts investments to quality sectors that see high competition, which need an open economic and legislative system, an easy access to trained human cadres, as well as energy and power at affordable prices.

Al-Falih pointed to a large electric vehicles (EVs) complex in Saudi Arabia, including CEER and Lucid. He added that a third EV partnership project will be announced with a global firm in the first half of 2023.

The government works today with these firms to ensure competitiveness through supply chains, the minister added, stressing that the establishment of a special economic zone has reached advanced stages. This zone will be the main hub for EV manufacturers and the related supply chain.