Saudi Arabia has reported its highest rate of inward investment for four years, in figures just released covering the final quarter of 2020.
The Central Bank of Saudi Arabia revealed in its latest set of monthly statistics that the kingdom attracted $1.87 billion in foreign direct investment (FDI) in the fourth quarter of last year.
That was up 72% on the previous quarter and up 80% on the same period a year earlier. It also marked the highest level of quarterly FDI since Q4 2016, when the kingdom reported inflows of just over $2 billion.
The overall figure for 2020 reached $5.49 billion, some 20% higher than in 2019 and the highest full-year total since 2016, when it was $7.45 billion– the following year, investment levels collapsed to just $1.4 billion.
However, while the improved performance will be welcomed by Riyadh, it is still far short of the amount the country needs to fulfil the ambitious goals set by Crown Prince Mohammed Bin Salman in his plan to reshape the Saudi economy, known as the Vision 2030 strategy.
Among the targets is to increase FDI to 5.7% of Saudi Arabia’s gross domestic product (GDP) by 2030. However, even with the rise last year, it remains below 1% of GDP.
Foreign investors are also a key element of projects such as the $500 billion futuristic city of Neom in the sparsely-populated northwest of the country.
Foreign dollars are important because of the skills and technologies that generally accompany any commercial investment – both of which are vital if the country is to create the number of well-paying jobs needed to employ its large young population.
The government has been using a carrot and stick approach to persuade more companies to come to the kingdom. Last year it set up a new Minister of Investment to encourage more FDI, replacing the old General Investment Authority. In mid-February this year, the state-owned Saudi Press Agency cited an unnamed “official source” who vowed that, from January 2024, the government would not sign any new contracts with companies unless they had their regional headquarters in the kingdom. Investment Minister Khalid al-Falih subsequently added that companies would be expected to show a real commitment and not just open a ghost office while basing their senior staff elsewhere.
At this stage it is not clear what was behind the sharp rise in inward investment in the final months of last year. It also remains to be seen if the government can sustain or further increase the amount of investment coming into the country, particularly given the toxic reputation of the crown prince, wider concerns about human rights abuses in the kingdom and the brutal war Riyadh is waging in neighbouring Yemen.
A view of central Riyadh, Saudi Arabia on December 6, 2019 (Photo: Valery SharifulinTASS via Getty … [+] Images)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
