UAE-based companies set to benefit from Saudi Arabia’s Vision 2030 Economic Diversification Plan

Investors based in the UAE are set to benefit from Saudi Arabia’s (KSA) diversification and privatisation programmes. According to the Saudi Arabian General Investment Authority, KSA aims to double annual inflows of foreign direct investment over the next 10 years by focusing on new sectors such as mining, healthcare and information technology.

The Government’s National Transformation Plan also stated that the non-oil exports would climb to SR 330 billion from SR 185 billion by 2020 and foreign direct investment (FDI) would rise to SR 70 billion from SR 30 billion. Considering that KSA is the United Arab Emirates’ (UAE) top Gulf Cooperation Council non-oil trade partner, the country presents attractive opportunities for investors.

KSA is also at a different stage of maturity when it comes to its economic diversification programmes, with the UAE being arguably more advanced. While both countries present attractive FDI opportunities, it may be the case that there are more green field projects in the Kingdom while the UAE presents other investment opportunities. Both will attract different types of investors.

Article by Links Group on Jul 28th 2016

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