Saudi Cabinet approves strategic framework to enhance FDI

12/11/24

Saudi Arabias government cabinet has approved a comprehensive national framework designed to stimulate foreign direct investment (FDI). The strategic move lays foundations for increased economic collaboration with global businesses and international organisations. It further aligns with the Kingdom’s long term Vision 2030 objectives, which prioritise economic diversification and sustainable growth.

According to the Saudi Press Agency, the Kingdoms FDI inflows reached a record SAR 96 billion (USD 25.6 billion) in 2023, marking a 50% year-over-year increase. This surge highlights its growing appeal as a leading investment destination.

In addition to FDI initiatives, the Cabinet further discussed recent diplomatic efforts, including engagements with global leaders aimed at reinforcing economic and sectoral cooperation. Among the notable decisions was Saudi Arabia's accession to the Cement and Concrete Breakthrough Initiative, launched at the UN Climate Change Conference. This decision underscores the Kingdom’s commitment to sustainability and global climate goals, aligning with its broader environmental agenda.

On the technology and innovation front, an agreement was endorsed with America to advance cooperation in civil aviation navigation and the peaceful exploration of outer space. This partnership highlights Saudi Arabia's growing capabilities in high-tech industries and its commitment to international scientific collaboration.

In terms of regional diplomacy, the Cabinet reviewed progress in peace initiatives and global health efforts, particularly through the G20 platform. It also highlighted advancements in tourism, with Saudi Arabia climbing 15 places in the 2023 international tourist revenue rankings, confirming its position as a global leader in the tourism sector.

Furthermore, a new agreement with Qatar was announced to prevent double taxation and curb tax evasion, leading to enhanced economic ties within the Gulf region. This agreement is expected to facilitate smoother cross-border investments, positioning Saudi Arabia as a key hub for international trade.

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