‘Saudi Arabia moving fast toward achieving its Vision 2030 goals’

The Saudi economy is standing strong and it is supported by a competitive environment, said a senior official of the Saudi Arabian General Investment Authority (SAGIA).

Dr. Ayedh bin Hadi Al-Otaibi, deputy governor of investment climate, was speaking at the Sixth Saudi Trade Finance Summit, which began on Wednesday in Riyadh.

Al- Otaibi delivered a speech on “Unlocking the potential of the Arab world’s largest economy” in which he reviewed the objectives and role of SAGIA with a particular reference to Vision 2030.

The SAGIA official also highlighted the recently introduced reforms in the investment environment to support the business sector in the Kingdom.

Al- Otaibi said Saudi Arabia is moving rapidly toward achieving its goals as envisaged in Vision 2030. The goals, he added, include an increase in foreign direct investment in the Kingdom, diversification of sources of income and leveraging its unique attributes as the heart of the Islamic world and the link between three continents.

The official said the Kingdom is taking all steps to make small and medium enterprises ( SMEs) the main engine for economic development in the Kingdom.

Due to the recent measures and reforms the SMEs in the Kingdom are witnessing a spurt in growth and job creation, he added.

SMEs are considered a key partner in the development of Saudi Arabia.

One of the important actions in supporting these companies is the establishment of the General Authority for SMEs (Monshaat), which aims to increase the contribution of such businesses in the economy. Monshaat aspires to contribute to innovation, facilitate funding and create jobs for Saudi males and females.

The government has put in place stimulus packages of up to SR200 billion ($53 billion) until 2020 under the Fiscal Balance Program, one of the central initiatives for realizing the Kingdom’s Vision 2030 reforms.

The PIF, the Kingdom’s sovereign wealth fund, has also supported the sector by setting up a SR4 billion fund ($1 billion) that will give SMEs access to capital. The “fund of funds,” as it is known, will invest in venture capital and private equity funds targeting the SME sector.

A privatization program also encourages the private sector to own or manage state-owned assets and to take over public services currently provided directly by the government.