Saudi based Swedish companies aim to increase investments
26/11/24
Saudi Arabian based Swedish companies intend to boost their investments in the Kingdom over the next year according to a recent report from Business Sweden.
Sweden's is Saudi Arabias largest trading partner in the Middle East and North Africa (MENA), with trade volumes increasing by 72% since 2018. This robust trade relationship is highlighted at key events like the Saudi-Swedish Joint Committee meeting, which coincided with the Future Investment Initiative (FII) in Riyadh.
Currently, around 60 Swedish companies are active in Saudi Arabia, with 77% of them planning to expand their investments in the country. Notably, all small and medium-sized enterprises (SMEs) surveyed expressed intentions to increase their investment, underscoring the optimism and long-term commitment Swedish firms have toward the Saudi market. Moreover, Swedish companies have a long-standing presence in the Kingdom, with some having operated there since the 1950s.
Around 40% of Swedish firms in Saudi Arabia have either established or are planning to establish regional offices in the country, signaling the Kingdom’s growing role as a hub for regional business activities. The ongoing economic reforms under Saudi Arabia’s Vision 2030 are creating favourable conditions for foreign direct investment (FDI), which has made the EU the largest source of FDI into the Kingdom, accounting for 66% of total foreign investments in 2022.
Both Saudi Arabia and Sweden are keen to strengthen cooperation, particularly in supporting small and medium-sized enterprises (SMEs) and fostering innovation. Swedish incubators, in collaboration with their Saudi counterparts, are focusing on nurturing young entrepreneurs and transforming innovative startup ideas into successful commercial ventures.
These efforts not only reinforce the bilateral trade relationship but also highlight the growing potential for strategic partnerships between Swedish and Saudi businesses, driven by mutual goals of economic diversification and sustainable growth.
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