The Ministry of Investment in Saudi Arabia has issued around 348 licences to foreign investors in the country during the first quarter of this year, the media reported.
When compared to the same period of the previous year, we see an increase of 19 percent. Its also a 20 percent increase when compared to the last quarter of 2019, ending December 31st.
Around 126 licences were granted to foreign investors by Saudi Arabia in the month of January, 121 in February and 101 in the month of March.
Saudi Arabia awarded licences to 37 companies from the US and 32 from the United Kingdom.
Khalid Al Falih, who serves as the minister of investment told the media, “The first quarter of 2020 was Saudi Arabia’s strongest period for investor interest in ten years. However, the economic effects of COVID-19 began to be felt worldwide towards the end of this period, and this becomes evident when we compare the rate of new investment on a month-by-month basis.”
He added, “Despite the cautious nature of economic activity, we can see that 73 percent of all new investments in Q1 2020 were for full foreign ownership and 27 percent were joint ventures with local Saudi partners. As we look toward a post-COVID-19 future, this is a reassuring show of confidence from the world’s investors in the Kingdom’s long-term prospects as an attractive investment destination.”
The first quarter of 2020 also marks the strongest quarter in the last 10 years, when it comes to investor’s interest in the kingdom of Saudi Arabia.
“We are confident that businesses will keep coming to the Kingdom as investor activity gains momentum and adapts to the post-COVID-19 era,” Al Falih added.