Prince Mohammed bin Salman bin Abdulaziz, Saudi Crown Prince, Deputy Prime Minister and chairman of the Council for Economic and Development Affairs, announced on Monday the launch of the National Investment Strategy (NIS), a key enabler to deliver on Vision 2030.
The NIS is a catalyst to deliver the kingdom’s economic transformation plan which was first outlined by the prince five years ago.
“Our country holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues,” he said in comments published by Saudi Press Agency.
He added that the kingdom also seeks to harness its strengths – the strategic geographical position, investment power and place at the centre of Arab and Islamic worlds.
According to Saudi Press Agency, the NIS will contribute to the growth and diversification of the economy, including raising the private sector’s contribution to GDP to 65 percent; increasing the contribution of FDI to GDP to 5.7 percent; increasing the contribution of non-oil exports to GDP from 16 percent to 50 percent and reducing the unemployment rate to 7 percent.
Prince Mohammed said at the launch: “Today, the kingdom embarks on a new investment era to empower Saudi and international private-sector investors with more and better opportunities. Investment is without a doubt one of the main routes for us to achieve the ambitions and aspirations of Vision 2030, among them economic development, diversification and sustainability; technology transfer and localisation; infrastructure development; better quality of life; job opportunities and the upskilling of our human resources, leaving a legacy of prosperity for future generations.”
He added: “The National Investment Strategy is all about empowering investors, offering investment opportunities, providing financing solutions and enhancing competitiveness. It also clarifies the partnership between the public and private sectors, as our mission is now to open the door to the private sector and allow it to grow and prosper.”
Comprehensive investment plans for sectors, including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare will be drawn up under the NIS.
The Crown Prince reiterated that Saudi Arabia’s ambitious investment goals will be achieved through the combined efforts of several entities such as the Public Investment Fund and large Saudi companies through the Shareek Program, as well as further domestic and international investments.
He highlighted that more than SR12 trillion will be injected into the national economy through investment activity by 2030 – the Shareek program initiatives will inject SR5 trillion, the Public Investment Fund is set to contribute SR3 trillion, and the remaining SR4 trillion will be generated by investments facilitated by the NIS.
The economy will also receive SR10 trillion through government spending during the next 10 years and a further SR5 trillion from private consumption spending in the same period.
The NIS will also aim to drive investment in the kingdom by enhancing the business environment, increasing investment attractiveness and competitiveness, instigating key regulatory and legislative measures, connecting investors with investment opportunities, offering incentive packages for selected projects and attracting regional headquarters to the kingdom.
A governance framework will ensure the implementation of the strategy through oversight from a new Supreme National Investment Committee chaired by the Crown Prince.
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