The Saudi Press Agency announced the approval of a new Updated Investment Law, published on 11 August 2024.

Set to come into effect in early 2025, the law aims to attract foreign investors, enhance the competitiveness of the investment environment, support economic diversification, and create job opportunities, all in alignment with Vision 2030 and the goals of the national strategy.

Saudi Investment Minister Khalid Al-Falih stated, “The law underscores Saudi Arabia’s commitment to fostering a welcoming and secure environment for investors, driving economic growth, and strengthening the Kingdom’s position as a leading global investment destination.”

“The policy direction set by Vision 2030 enables investors to invest with certainty and grow with confidence, especially at a time when many other markets are facing significant volatility,” he added.

The updated investment system, approved by the Council of Ministers, is a key component of the National Investment Strategy, aimed at diversifying the local economy and attracting over USD 100 billion in foreign direct investment annually by 2030.

Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail emphasised that the updated Investment Law will bolster the creation of a competitive investment environment, reinforcing Saudi Arabia’s status as a premier global destination and supporting the Kingdom’s future vision.

“The law will help realise the government’s ambitions to develop smart and prosperous cities by streamlining investments to deliver comprehensive services in the municipal and housing sectors.”

The new Investment Law will take effect 180 days after its publication, with the executive regulations for its implementation also to be issued within this 180-day period.

The law also seeks to create a competitive market environment by encouraging fair competition and ensuring equal treatment for both domestic and international investors.

These reforms have driven rapid investment growth, with gross fixed capital formation rising by 74% from 2017 to nearly USD 300 billion in 2023. Additionally, FDI stock increased by 61% from 2017 to 2023, reaching nearly USD 215 billion in 2023, and FDI inflows surged by 158%, growing from USD 7.5 billion in 2017 to USD 19.3 billion in 2023. These initiatives, along with incentives, facilities, and enablers, have encouraged investors to seek a positive, supportive, and stable investment environment.