Saudi Arabia issues 812 foreign investment licences in 9M 2020

22/12/2020 Argaam Special


Riyadh City


Saudi Arabia’s Ministry of Investment issued 812 new licenses to foreign companies in the first nine months of 2020, compared to 840 licenses a year earlier.

The number of foreign investment licenses rose 20% year-on-year (YoY) in Q1 2020 to 350 licenses, before falling by 47% YoY in Q2 2020 to 165 licenses – the first quarterly drop in three years. The number of licenses rose 20% YoY and 96% quarter-on-quarter (QoQ) in Q3 2020 to 306 licenses.

In Q3 2020, foreign investments with full ownership represented 68% of total license, while projects in participation with local investors accounted for 32%.

 

The ministry said, during the first nine months of 2020, the Saudi economy showed clear signs of resilience despite the challenges faced by the global economy since the outset of the COVID-19 pandemic.

 

It added that most economic indicators showed continued resilience of the Saudi investment environment.

 

Foreign Investment Licenses in Saudi Arabia

Period

Number

YoY Variation

Q1 2016

72

--

Q2 2016

54

--

Q3 2016

44

--

Q4 2016

86

--

Q1 2017

66

(8%)

Q2 2017

85

+57%

Q3 2017

84

+91%

Q4 2017

142

+65%

Q1 2018

157

+138%

Q2 2018

146

+72%

Q3 2018

197

+135%

Q4 2018

238

+68%

Q1 2019

292

+86%

Q2 2019

294

+101%

Q3 2019

254

+29%

Q4 2019

291

+22%

Q1 2020

350

+20%

Q2 2020

156

(47%)

Q3 2020

306

+20%

 
 

The highest number of foreign investment licenses in 9M 2020 were granted to emerging sectors, including education, financial services, and housing (282 licenses). The industrial and manufacturing sector came second with 155 licenses followed by the information and communication technology (ICT) with 99 licenses.

 

New Foreign Investments by Sector in 9M 2020

Sector

H1 2020

Q3 2020

Total (9M)

Emerging Sectors

172

110

282

Industrial & Manufacturing

102

53

155

ICT

73

26

99

Transport & Logistics

56

35

91

Retail & E-commerce

34

27

61

Tourism, Culture & Entertainment

26

16

42

Engineering Services

17

22

39

Energy & Water

12

2

14

Chemicals

8

6

14

Healthcare

4

9

13

Other

2

--

2

Total

506

306

812

 
 

India topped in terms of new foreign investment projects in the Kingdom with 79 projects. Egypt came second with 68 projects, followed by the US (64) and the UK (63).

 

New Foreign Investment Projects by Country in 9M 2020

Sector

Number of Licenses

(H1 2020)

Number of Licenses

(Q3 2020)

Total (9M 2020)

India

49

30

79

Egypt

38

30

68

US

54

10

64

UK

47

16

63

Lebanon

45

16

61

Yemen

21

15

36

Syria

18

15

33

Pakistan

17

15

32

Jordan

20

11

31

France

16

11

27

Other

181

137

318

Total

506

306

812

 

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