Crown Prince launches National Investment Strategy

Crown Prince Mohammed bin Salman

Crown Prince Mohammed bin Salman launched today, Oct. 11, the National Investment Strategy (NIS) – a key enabler of the Vision 2030 objectives. 

The NIS is a catalyst to deliver the Kingdom’s Vision 2030 objectives, which was outlined by the Crown Prince at the launch, when he said: “Our country holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues.” 

The Kingdom also seeks to harness its strengths: the strategic geographical position, investment power and place at the center of Arab and Islamic worlds, he added. 

The strategy will contribute to the Kingdom’s economic growth and diversification, in line with Vision 2030 objectives, including raising the private sector contribution to gross domestic product (GDP) to 65%. 

It also aims to increase foreign direct investments, to 5.7% of GDP and raise non-oil exports to 50% from 16% of total non-oil GDP. 

Moreover, the new strategy seeks to cut the unemployment rate to 7% and advance the Kingdom to the top 10 countries on the Global Competitiveness Index by 2030. 

"Today, the Kingdom embarks on a new investment era to empower Saudi and international private-sector investors with more and better opportunities,” the Crown Prince said. 

“Investment is without a doubt one of the main routes for us to achieve the ambitions and aspirations of the Vision 2030. Among them are economic development, diversification and sustainability; technology transfer and localization; 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 strategy also focuses on enabling investors, providing investment opportunities and financing solutions, as well as enhancing competitiveness.

It will also strengthen the effectiveness of the public-private sector partnership, the Crown Prince said. 

The next phase of the strategy will focus on developing detailed investment plans for various sectors, including the industrial sector, renewables, transport and logistic services, tourism, digital infrastructure and healthcare. 

The strategy seeks to raise net foreign direct investment to SAR 388 billion annually and boost local investment to SAR 1.7 trillion annually by 2030. Having realized these objectives, the ratio of investment to the Kingdom’s GDP is expected to rise from 22% in 2019 to 30% in 2030, which, in turn, will support Saudi Arabia’s economic growth to rank among the largest 15 economies worldwide. 

Additionally, the Crown Prince affirmed the importance of investment in driving the economic growth and sustainable development targeted under Vision 2030.  

He added that more than SAR 12 trillion worth of investments will be injected in the Saudi economy through 2030, including SAR 3 trillion from the Public Investment Fund (PIF), SAR 5 trillion through the Shareek program and SAR 4 trillion from international and national companies.  

Further, the economy will receive SAR 10 trillion through government spending during the next decade and a further SAR 5 trillion from private consumption spending in the same period.

This represents a total injection of SAR 27 trillion ($7 trillion) in the next decade. 

“Today, we are proud of the remarkable achievements made in the ‘Kingdom of Opportunities’ during the first phase of the Vision 2030, under the leadership of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud,” the Crown Prince said. 

“We will continue our work to pave the way towards a bright future, enriched by a diversified and sustainable economy.

This strategy is one means to achieve this goal, and we are confident in our abilities to reach our ambitious targets and meet the aspirations of our great people,” he added. 

The NIS complements the investment strategies of various Vision Realization Programs such as the Public Investment Fund (PIF) Program, the National Industrial Development and Logistics Program, the Privatization Program, the Financial Sector Development Program and the Quality of Life Program, in addition to other national strategies. 

A comprehensive governance framework will ensure the implementation of the strategy through oversight from a new Supreme National Investment Committee chaired by the Crown Prince that will set and approve incentive packages for superior investments and develop investment opportunities. 

The strategy includes several initiatives such as establishing special economic zones with competitive regulations and incentives that attract investments in priority sectors and a program to transfer strategic supply chains to Saudi Arabia and acquire a market share in supply chain components. 

It also includes initiatives such as diversifying funding options, which include developing new financing solutions for the private sector to promote capital formation, as well as the enhancement of “Invest Saudi” as the national platform for presenting and marketing investment opportunities in Saudi Arabia.