Investment in Saudi Vision 2030 and Improving the
Business Environment
Presented by Saudi Arabian General Investment Authority “SAGIA”
© SAGIA 2017 │ Invest Saudi
EU-GCC Trade and Investment Dialogue
16-17 May 2017, Riyadh, KSA
Saudi Arabia at a glance
Total Population
GDP
31.7
$640
Million
Billion
Percentage of Youth
(Under 25)
Population Growth Rate
2.5%
50%
2
© SAGIA 2017 │ Invest Saudi
Source :
1) UNCTAD 2015
2) General Authority for Statistics Feb 2016
FDI Inward Stock
$224
Billion
The Saudi Arabian Economy
20th
Largest
Economy
3
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5th
Highest
Growth(G20)
* Source : IMF World Bank Data 2015
General Authority for Statistics
17th
29th
Largest
Exporter
Largest
Importer
Saudi Arabia Today
• Young, large and growing demography
• Rich cultural heritage
• Central location between Europe, Asia and Africa
• Bedrock of regional stability
• Energy resources
• Blessed with rich mineral resources
• Global leader in Petrochemicals
4
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5
© SAGIA 2017 │ Invest Saudi
Our Vision: Pillars
SAUDI ARABIA The heart of the Arab
and Muslim World
AN INVESTMENT Powerhouse
A HUB Connecting Three Continents
6
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Our Vision: Theme
A Vibrant Society
A Thriving Economy
An Ambitious Nation
7
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A Vibrant Society
80 years
6%
6%
10
3%
26
3%
74
Life Expectancy
8
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Disposable Income on
Entertainment & Leisure
OECD Social
Capital Index
A Thriving Economy
5.7%
65%
35%
3.8%
40%
20%
FDI’s Contribution
to GDP
9
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Private Sector
Contribution to GDP
SME Contribution to
GDP
Ambitious Nation
5
10
80 20
36
80
Improving our E-Government
Survey Index ranking
Improving our Government
Effectiveness Index ranking
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Empowering Localization
11
Defense & Military
Oil & Gas
50%
75%
2%
40%
Localizing Military Spending
Local Content Oil & Gas
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Connecting 3 Continents
A LOGISTICAL
LOCATION
25
10% of World Trade
passes by the Red Sea
Improving Governance
and Easing Trade
Movement
OUR
GEOGRAPHIC
POSITION
ENHANCES
OUR GLOBAL
TRADE
PROGRESS
49
Logistics Performance Index
WE HAVE
Top Infrastructure
OUR UPCOMING GOAL
1st in the GCC
12
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Clear Goals, Clear Roles
1. National Transformational Plan (NTP) 2020
2. Strategic Partnership Program
3. Privatization Program
4. Regulations Review Program
5. Fiscal Balance Program
6. Government Project Management Program
7. Saudi Aramco Strategic Transformation Program
8. Public Investment Fund Restructuring Program
9. Human Capital Program
10. Program for Strengthening Public Sector Governance
11. Performance Measurement Program
18
© SAGIA 2017 │ Invest Saudi
EXECUTIVE
PROGRAMS
SAGIA’s Core Business and role to achieve SV 2030
SAGIA’s Core Business
SAGIA
SAGIA undertakes multiple investment related activities including developing business opportunities, enhancing
investor services and proactively pursuing strategic initiatives
Investment
Regulation & Policy
Investment Promotion
Investors
Services
Fostering the business climate for
investment
Identifying market opportunities in a growing
and diversifying economy
Providing administrative and practical
support for investors
Institutionalizing Efforts Through Steering Committee
Council of Economic & Developmental Affairs (CEDA)
Ministerial Committee
Executive Committee for Improving
the Performance of the Private
Sector (“Tayseer”)
Global Benchmarks &
WB Committees
Ministerial
Partnerships
Specialized Working
Groups
11/12/2015
15/11/2016
04/08/2016
16/05/2016
16 Government
Entities
Competitiveness
Acceleration Program
CAP Program Overview
Convene Task Force
Review Initial
Diagnosis and Action
Plan
Align on Key
Issues &
Problems
Share & Develop
Potential
Solutions
Align on Actions
and KPIS
Finalize Action
Plan
Competitiveness Acceleration Program (CAP)
Enhancing Trade Across
Borders
Trading Across Borders
 Quality of Logistics
Infrastructure
 Importing Goods &
Equipment
 Exporting to Foreign Markets

Enhancing Commercial Law
Foundations
Enforcing Contracts
 Protecting Investors
 Resolving Insolvency
 Transparency of Legal
Framework

Ease of Starting a Business
Starting a Business (as a
Saudi)
 Foreign investment process &
regulations

Regulatory Transparency &
Stability

Improving Access to Markets &
Competition
Market Concentration &
Dominance by Large Firms
 Clarity of Investment
Opportunities

Transparency and
Consistency of Regulation
Foundations for Future
Competitiveness
Quality of Primary Education
 Innovation Ecosystem
 Quality of Infrastructure

Improving the Quality &
Availability of Labor
Efficient Use of Talent
 Quality of Labor Force
 Labor Market Flexibility
 Quality of Higher Education
 Ease of Hiring and Firing

Enforcing Gov’t Procurement &
Incentives
Aligning Procurement &
Incentives for Economic Impact
 Access to Government
Procurement
 Access to Government
Incentives

Ease of Doing Business Committees
H.E. Dr. Majed AlQassabi
Minister of Commerce and Investment
1
Starting a Business
KSA’s Ranking
Current
Ranking
94
2
Obtaining a Construction Permit
3
Getting Electricity
4
Registering Property
Total Actions
Completed
Actions
70
40
2020
Target
20
Worked closely with WB to develop the initiatives
5
Getting Credit
6
Protecting Minority Investors
7
Paying Taxes
8
Trading Across Borders
9
Enforcing Contracts
10
Dealing with Insolvency
Allocated resources from different government
entities to drive implementation
Each committee includes representatives from any
relevant government agency
Completed and Upcoming Actions
Completed
Upcoming
1 • Establishing the arbitration center
1 • New procurement law
2 • Decreasing the number of import/export documents needed
2 • New insolvency law
3 • Removing requirement for company seal
3 • Port community system to automate import / export processes
4 • Opening bank accounts in 24 hours
4 • Establishing independent commercial courts
5 • Issuing new rules for protecting minority investors
5 • National center for documents and archives
6 • Implementation of the unified ID number (the 700 #)
6 • Private sector participation in policy making
7 • Establishing 6 One Stop Shops
8 • Develop electronic case management tools for judges and lawyers
Thank you,
© SAGIA 2017 │ Invest Saudi