Investments in the Kingdom

Investments in the Kingdom of Saudi Arabia refer to the investment opportunities offered by the Kingdom across multiple sectors. The Kingdom aims to transform itself into a leading global investment destination, with prominent sectors including the industrial sector, the chemical industry, the minerals and mining sector, the communications and information technology sector, the tourism, culture, and entertainment sector, and the health sector.

Saudi Vision 2030 provides unprecedented investment opportunities in the Kingdom of Saudi Arabia. The Ministry of Investment strives, amid these increasing opportunities, to enable investors to access them. It aims to provide the maximum possible facilitation and flexibility in licensing procedures and investor services by providing representatives from relevant government entities to complete the required procedures. Additionally, it supports investors throughout all stages of their business, from establishment to commencement.

The Ministry of Investment takes the lead in developing the investment environment in the Kingdom, conducting ongoing studies of the Saudi market, as well as compiling and developing investment opportunities, stimulating local investment, and attracting foreign investment by highlighting the immense potential and promising opportunities that the Kingdom possesses.

The ministry provides flexible and advanced services for both local and international companies, whether startups or major corporations, through investor relations centers in Riyadh, Jeddah, Dammam, al-Jubayl, and al-Madinah al-Munawwarah. This is aimed at achieving an investment environment characterized by high efficiency and ease of doing business.

The Saudi economy is witnessing significant growth across various sectors, registering an upward trend in international competitiveness indicators. This is achieved through leveraging the Kingdom's natural resources and its strategic geographical and cultural position among the three continents of the world. This growth has resulted in the establishment of a strong economic base, with the country becoming one of the top twenty global economies, an active member of the G20, and a key participant in the global economy and global oil markets, supported by a robust financial system, an efficient banking sector, and giant government companies.

The structural reforms in the Saudi economy have accelerated its growth and advancement among global economies. The Kingdom's ranking in the '2020 Ease of Doing Business' Index issued by the World Bank improved by twenty-nine positions, achieving more than 555 investor service reforms. These include reducing the time required to start a business to thirty minutes from the previous fifteen days. Additionally, the number of small and medium-sized enterprises increased in the same year to more than 626,000 establishments, surpassing 1.27 million establishments in the third quarter of 2023.

The Kingdom has achieved advanced competitive rankings in several competitiveness reports worldwide. It ranked twenty-fourth in the IMD World Competitiveness Yearbook 2022 and eightieth in the Women, Business, and the Law 2021. It has ranked second among the G20 countries in the Digital Transformation Index for 2021.

The Saudi economy has recorded high growth rates compared to other economies. In 2022, it achieved a growth in gross domestic product (GDP) of 8.7 percent among the G20 countries during that year despite the complex economic circumstances and challenges facing countries worldwide. This surpassed the expectations of international organizations, which had estimated a maximum of 8.3 percent.

In 2022, the GDP of the Saudi economy at current prices exceeded USD1 trillion, marking the first time that the GDP in the Kingdom has reached this aggregate value. This achievement was supported by the diversity of activities contributing to its attainment. All economic activities recorded positive growth rates during that year, with the contribution of crude oil and natural gas activities reaching 32.7 percent, followed by government services activities at 14.2 percent. This was followed by manufacturing activities, excluding oil refining, at 8.6 percent, and wholesale and retail trade, restaurant, and hotel activities with a contribution rate of 8.2 percent.

As part of the Kingdom's efforts to develop investments, the Crown Prince, Prime Minister, and Chairman of the Council for Economic and Development Affairs, Prince Mohammed Bin Salman Bin Abdulaziz, launched the National Investment Strategy in 2021. It is one of the main enablers in achieving the objectives of Saudi Vision 2030, setting the general framework and main driver for enhancing the future of investment in the Kingdom. This includes developing investment opportunities, improving the business environment, and enhancing the Kingdom's competitive position on the global investment map.

The strategy enhances the objectives of the vision by contributing to the growth and diversification of sources of the national economy. It aims to increase the private sector's contribution to the GDP to 65 percent and boost foreign direct investment to reach 5.7 percent of the GDP. Additionally, it aims to increase non-oil exports from 16 percent to 50 percent of the total non-oil GDP, reduce the unemployment rate to 7 percent, and propel the Kingdom into the top ten positions in the Global Competitiveness Index by 2030.

The National Investment Strategy marks the beginning of a new investment phase in the Kingdom, focusing on empowering investors, developing and facilitating investment opportunities, providing financial solutions, and enhancing competitiveness. It also contributes to increasing the effectiveness of the partnership between the government and private sectors. This includes developing detailed investment plans for sectors, such as industry, renewable energy, transportation and logistics services, tourism, digital infrastructure, and healthcare sectors.

Under Saudi Vision 2030, investments exceeding SAR12 trillion will be injected into the local economy by 2030 (SAR5 trillion from the initiatives and projects of the Shareek Program, SAR3 trillion from the Public Investment Fund allocated for local investments, and SAR4 trillion from diverse national and international company investments under the National Investment Strategy). Additionally, the economy will benefit from approximately another SAR10 trillion of government expenditure through the state's general budget and another SAR5 trillion from private consumption expenditure over the same period. This totals approximately SAR27 trillion in expenditure until 2030 (equivalent to around USD7 trillion).

The National Investment Strategy aims to achieve several objectives, including raising net inflows of foreign direct investment to SAR388 billion annually and increasing local investment to around SAR1.7 trillion annually by 2030. The investment-to-GDP ratio in the Kingdom is expected to rise to 30 percent by 2030, contributing to the growth of the Saudi economy and positioning it among the world's top fifteen economies.

The Kingdom worked to frame the foreign investment system and provide incentives for it through a regulatory matrix supporting the growth of these investments. The Foreign Investment Law was issued in 2000, which defined the foreign investor as a natural person who is not of Saudi nationality or a legal person whose partners are not all of Saudi nationality, and defined foreign investment as the employment of foreign capital in an activity licensed by this law.

According to the law, a license is issued to invest foreign capital in any investment activity in the Kingdom, whether permanent or temporary, and the foreign investor may obtain more than one license in different activities. Also, foreign investments licensed to operate as per the provisions of the law may be either:

Establishments jointly owned by a national investor and a foreign investor.

Establishments wholly owned by a foreign investor.

Foreign investment in the Kingdom is considered one of the investment systems that contribute to supporting the strength of the national economy of the Kingdom, providing it with a greater ability to interact with the global economy and elevating it to higher levels of efficiency and competitiveness. According to the latest Foreign Investment Law in the Kingdom, issued in 2000, foreign capital includes money, securities, negotiable instruments, machinery, equipment, spare parts, raw materials, products, transportation means, intellectual property rights such as patents and trademarks, and any equivalent value owned by a non-Saudi natural or legal person.

When the foreign investment law was issued in 1955, the Kingdom systematically attracted and employed foreign capital for the benefit of development. The law stipulated that the national capital participation rate shall not be less than 51 percent of the total funding.

With the increasing importance of this investment and its impact on the state's finances and the funding of its projects, another Foreign Investment Law was issued in 1963, distinguished by providing some incentives to encourage foreign capital investment, including granting it the same advantages enjoyed by domestic capital, provided that the percentage of the national component does not fall below 52 percent of the total project financing.

The Kingdom has many investment opportunities across all economic sectors, alongside numerous potentials that support investment growth and optimal utilization of existing opportunities. In 2020, the value of foreign direct investment inflows reached around USD5.4 billion, a 20 percent increase compared to a global decrease of 35 percent in the same year. The percentage of foreign direct investment balance to GDP reached 34.50 percent.

The venture capital system in the Kingdom has been bolstered by the establishment of the Saudi Venture Capital Company (SVC) to stimulate and develop the venture capital sector, private equity, venture debt, and private debt in the Kingdom. SVC is a government investment company founded in 2018 and is affiliated with the Small and Medium Enterprises Bank, one of the developmental banks under the National Development Fund. It aims to stimulate and sustain the financing of startups and small and medium-sized enterprises from the pre-seed stage to the pre-initial public offering (IPO) stage through a USD2 billion investment, through investing in funds and investing by participating in startups and small and medium-sized enterprises.

SVC incentivizes venture capital through two main programs. The first involves investing in venture capital funds and investment growth funds to encourage the establishment of funds that invest in startups and small and medium-sized enterprises at various stages of their growth. It also encourages investment funds to provide added value to startups and small and medium-sized enterprises in the Kingdom, with the company's participation in funds capped at a maximum of 65 percent. This maximum percentage also applies to government entities' participation, including the SVC's contribution.

The company's second program involves co-investing with investment institutions (fund managers) in cases of funding gaps or to stimulate investments in advanced stages for strategic or financial objectives, with a focus on strategic sectors. This is provided that the headquarters or primary operations of these companies are located within the Kingdom, and the minimum investment is SAR500,000. The contribution ratio for institutions should be '1:1' and capped at 20 percent of the investment round size.

Venture capital in the Kingdom has evolved since the establishment of the company. Venture capital rose from SAR221 million in 2018 to SAR3.7 billion in 2022, marking a 16.7-fold increase. The number of deals increased from fifty-six to 144 transactions, a 2.6-fold increase, and the number of investors grew from twenty-six to 104 investors, quadrupling in number. The Kingdom also secured the second position in the list of top countries in the Middle East and North Africa in terms of venture capital value, according to the 'MAGNiTT' report.

The Kingdom has worked on developing laws that advance the sports sector and contribute to achieving sustainability and returns from sporting activities. The Ministry of Sport regulation was issued in 2020, stating in its second article that the ministry is the competent entity and the main reference in the Kingdom regarding the regulation and development of the sports sector, enhancing its potential, expanding the pool of sports practitioners, and working to achieve excellence in Saudi sports locally and internationally. The ministry oversees all sports activities.

To bolster sports investment and achieve its sustainability, the Ministry of Sport is dedicated to encouraging, fostering, and developing investment in the sports field and attracting local and international sports investment, as per the established regulatory procedures.

Between 2016 and 2020, the sports sector's contribution to the GDP surged by around 170 percent, from SAR2.4 billion to SAR6.5 billion. This bolstered the financial sustainability of the sector.

The sports investment system in the Kingdom continued to advance towards achieving the objectives of Saudi Vision 2030. As a result, there was an increase in the licensing of sports halls following the launch of the sports halls and centers licensing service in 2017. The number of licenses reached 1,259 in 2019 and surged to over 1,549 in 2020.

In this field, numerous gains have been realized in sports investment, with the launch of a new licensing service aimed at expanding investment opportunities with the private sector. Additionally, a licensing platform was inaugurated in 2020, contributing to the issuance of over eighty licenses by the end of 2020.

Sports investment has extended to sports clubs as well. While no club had any private sports investment companies in 2015, three private club-affiliated sports investment companies were established for the first time in 2020 to ensure the financial sustainability of those clubs.

Sports clubs receive the support that encourages them to invest in sports. With the establishment of the club investments platform, the number of applications submitted through the platform reached approximately thirty-nine in 2019, benefiting eleven applicants. In 2020, the number of applications surged to around 104, benefiting twenty applicants.

The Ministry of Sport in the Kingdom continued to support efforts in sports investment, attracting investors, and providing more investment opportunities in the sports sector. From 2019 to 2021, the ministry approved the establishment of 'investment companies' for thirteen clubs from the Prince Mohammed Bin Salman Professional League clubs as part of the governance objectives stemming from the club support strategy initiative.

On June 5, 2023, the sports clubs investment and privatization project was launched after completing the executive procedures for the first phase. In the first phase, the project included two main tracks. The first track involves approving investments from major companies and developmental entities in sports clubs in exchange for transferring club ownership to them. The second track involves offering a number of sports clubs for privatization, starting from the last quarter of 2023.

On December 31, 2023, the Ministry of Sport, in coordination with the National Center for Privatization, announced the start of the second phase of the sports clubs investment and privatization project. The second track includes registering the interest of local and global entities interested in investing in sports clubs as a preliminary step to initiate the public offering process.

The sports clubs investment and privatization project relies on three strategic objectives: creating an attractive environment for investment in the sports sector to achieve a sustainable sports economy, achieving organization, enhancing professionalism and administrative and financial governance in sports clubs, and working on developing infrastructure, which positively impacts improving the experience for the audience.

The overarching goal of transferring and privatizing clubs is to achieve qualitative leaps in various sports in the Kingdom by 2030 to develop the football game and its competitions specifically to place the Saudi league among the world's top ten leagues, increase the annual revenues of the Saudi Pro League from SAR450 million to over SAR1.8 billion annually, and raise the market value of the Saudi Pro League from SAR3 billion to over SAR8 billion.

The Saudi economy has achieved advanced positions in various economic indicators. It ranked first in confidence in government performance for 2021 and third in the debt-to-GDP ratio among G20 countries. The percentage of foreign direct investment balance to GDP reached 34.5 percent, while it ranked fifth in GDP per capita (PPP) among G20 countries. Foreign direct investment inflows increased by 20 percent in 2020 compared to a global decrease of 35 percent.

The Kingdom's ranking in global indices for business environment and investment ecosystem has been on the rise. In 2022, it ranked twenty-second out of 132 in the business environment index, seventeenth out of 132 in entrepreneurship policies and culture, seventh out of 132 in venture capital received, value, as a percentage of GDP, twenty-fifth out of 132 in finance for startups and scaleups, twenty-fourth out of sixty-three in world competitiveness ranking-overall, thirty-first out of sixty-three in economic performance, nineteenth out of sixty-three in government efficiency, sixteenth out of sixty-three in business efficiency, thirty-fourth out of sixty-three in infrastructure index, thirty-fifth out of sixty-three in world digital competitiveness index, nineteenth out of sixty-three in investment in wired and wireless communications, thirty-seventh out of sixty-three in future readiness index, and thirty-second out of sixty-three in investment and development index.

In 2022, the Kingdom ranked first in real GDP growth among G20 countries and fourteenth out of 235 countries worldwide in terms of the Kingdom's real GDP. Additionally, it ranked sixteenth out of twenty in nominal GDP among G20 countries and seventeenth out of 235 countries worldwide in terms of the Kingdom's nominal GDP.

In 2023, the Kingdom ranked fifth in the real GDP growth among the G20 countries, eleventh out of thirty worldwide countries in the real GDP growth, second out of twenty-three in the overall primary consumer sentiment index, fifth out of twenty-eight in the trust in business index, third out of twenty-eight in trust in government index, eleventh largest among global ranking by market cap for the Saudi stock market - Tadawul, seventy-ninth out of 167 in the prosperity index, and eighth out of 176 in the economic freedom index.

The Eighth Development Plan worked to improve the investment environment, and the General Investment Authority (currently the Ministry of Investment), worked on the preparation of an integrated strategy in 2005, which included various key initiatives, such as: providing comprehensive services and facilities and providing information to all (Saudi and non-Saudi) investors, and attracting new investors, by presenting investment opportunities to targeted international investors.

Saudi Vision 2030 enhanced the general investment system and foreign investment in particular in the Kingdom, as one of its most important goals is to raise the economic level and diversify sources of income. Therefore, the government worked to encourage foreign investors to invest in the Kingdom and established laws and controls for foreign investors to ensure achieving the desired goals and preserving investors' rights.

Private investments (both national and foreign) in the Kingdom are subject to general principles and policies that serve the growth of the national economy, leading it to prosperity in line with the targets of Saudi Vision 2030. The implementation of these policies began in development plans, focusing on monitoring the contribution of foreign direct investments in preparing the national economy for the transition to a knowledge-based economy. This is accomplished through contributing to technological development, supporting the transfer of technology to the Kingdom, and incubating and producing it. Additionally, they contribute to the development of technically qualified national talents and encourage strategic alliances between private national companies and technologically advanced global companies to elevate technical content and transfer productive, administrative, and marketing experiences to national production and service activities.

The investments in the Kingdom are active and operate according to principles and policies that include:

Ensuring equality between Saudi and non-Saudi investors, as well as among non-Saudi investors.

Ensuring protection for the properties of all investments, in accordance with the laws in the Kingdom.

Enhancing the sustainability of investments and implementing clear and transparent procedures for addressing investor complaints.

Providing investment incentives when needed, enhancing full transparency in their issuance, and preparing and issuing a list of investment incentives based on general, clear, and non-discriminatory criteria.

Preserving environmental and social standards to ensure the commitment of both Saudi and non-Saudi investors to health, safety, and environmental work rules, as stipulated in the Kingdom's laws, regulations, national policies, and international agreements that the Kingdom has ratified.

Facilitating procedures related to the entry and residence of non-Saudi technical and administrative employees and their families to participate in activities related to foreign investment, in compliance with the Kingdom's laws and international commitments.

Transfering and localizing sciences and technologies resulting from foreign direct investment in compliance with the Kingdom's international commitments.

The Ministry of Investment is the competent entity and main reference in the Kingdom for regulating, developing, advancing the constituents, and encouraging (both local and foreign) investment, as well as protecting investors. The regulation of the Ministry of Investment was issued as the competent entity and main reference in the Kingdom for regulating, developing, advancing the constituents, and encouraging (both local and foreign) investment, as well as protecting investors. It may, without prejudice to the powers and responsibilities of other entities, carry out everything necessary to achieve its goals.

This regulation superseded the regulation of the General Investment Authority, issued in 2000, and granted the Ministry of Investment the following powers and responsibilities:

Preparing the national investment strategy in the Kingdom, submitting it to complete the necessary regulatory procedures regarding it, supervising its implementation after approval, and proposing any amendment to it.

Preparing general policies for investment development and enhancement, fostering an optimal investment environment, boosting its competitiveness, and elevating it for approval in accordance with the established regulatory procedures, as well as overseeing its implementation after approval.

Proposing investment-related draft laws, reviewing existing laws, proposing amendments, and presenting them for the completion of necessary regulatory procedures.

Issuing investment licenses in compliance with relevant regulatory texts, regulating their processes, providing ministry services to investors, regulating all essential requirements to achieve this, and determining the financial compensation in agreement with the Ministry of Finance and the Non-Oil Revenue Development Center.

Defining indicators to measure the performance of investments within the Kingdom and the measuring mechanism in coordination with concerned entities, and presenting them for approval to the Council of Economic and Development Affairs. The ministry undertakes to oversee their implementation and evaluation post-approval.

Developing executive plans and suitable regulations to facilitate the investment environment in the Kingdom, setting standards for its growth, enhancing its competitiveness, and submitting what requires the completion of pertinent procedures.

Attracting investments through organizing, holding, and participating in conferences, seminars, domestic and international exhibitions, events, and other means, and announcing initiatives aimed at stimulating investments.

Establishing an investment database and its indicators within the Kingdom, to serve as the unified platform and main reference for information related to the powers of the ministry, and coordinating with relevant entities to provide the ministry with relevant information, data, and reports, according to the national data governance policies and regulations issued by the Saudi Data and Artificial Intelligence Authority.

Supporting Saudi investment abroad, and addressing their challenges with relevant entities within and outside the Kingdom.

Working towards enhancing investment sustainability, bolstering its role, addressing its challenges and obstacles, and proposing feasible incentives.

Coordinating with relevant government entities to enable the ministry to carry out its tasks.

Representing the Kingdom or participating in its representation before organizations, entities, and regional and international conferences and forums related to the ministry's powers.

Conducting studies and research related to its powers, and collaborating with specialized research centers and experts at local and international levels in this field.

Entering into agreements related to the ministry's activities with relevant entities in other countries and international organizations, in accordance with established regulatory procedures.

Representing the government in negotiations with strategic investors, and designing investment incentives and submitting them to complete the necessary,

Any task lawfully assigned to the ministry.

The Kingdom is working to introduce several investment packages to incentivize both local and international investors. Its goal is to become an appealing investment hub that fosters growth and expansion. To this end, a ministry dedicated to investment has been established and tasked with enabling investors to access investment opportunities and offering them support and flexibility. This includes:

Economic market analysis: This involves providing diverse and standardized information, conducting case studies, furnishing and developing reports, sharing this information on databases, and assisting in feasibility studies.

Building partnerships: This is accomplished by connecting with commercial and industrial entities, local companies, specialized services, and small and medium-sized enterprises in the supply and distribution chain.

Building partnerships: This is accomplished by connecting with commercial and industrial entities, local companies, specialized services, and small and medium-sized enterprises in the supply and distribution chain.

Providing services in researching suitable sites or lands for the investor, linking him with real estate agencies to offer specialized assistance, and evaluating the required sites or lands.

Coordinating with government entities and providing advice on the procedures for applying for licenses, services, and visas required to start work.

Providing advice on legal entity.

Coordinating with specialized agencies to assist in starting operations in the Kingdom.

Coordinating with agencies specialized in recruitment.

Assisting with advertising, conferences, and press releases.

Coordinating with funding entities to study the possibility of partnership and support.

Introducing the incentives and support provided.

Providing recommendations on legislation after studying feedback.

Assisting in conveying investors' opinions to legislative entities.

Addressing operational problems for investors.

Within the regulatory framework and procedural facilitation, individuals who have received preliminary approval from the National Anti-Commercial Concealment Program can obtain an investment license under certain conditions, which are:

The audit is completed on the application submitted to the platform of the National Anti-Commercial Concealment Program.

Provide proof that the financial revenues amount to SAR2 million or more for the last year through an approved budget or that the number of employees amounts to fifty or more under the social insurance certificate.

The commercial registration of the establishment requesting correction must be issued before the start date of the correction campaign.

Residents in the Kingdom must provide a no-objection letter from their Saudi sponsor.

The new foreign partner must possess a residence permit sponsored by the establishment seeking correction.

The issuance of investment licenses for foreign investment in the Kingdom has been facilitated, requiring the submission of two documents, which are:

A copy of the commercial registration of the establishment in its country of origin, certified by the Saudi embassy.

The latest fiscal year's financial statements of the foreign company, prepared by a globally recognized legal firm and certified by the Saudi Embassy.

Additional documents may be requested depending on the nature of the activity and the type of license required.

The types of investment licenses in the Kingdom vary depending on the sectors targeted by economic activities, and they include:

Agricultural license.

Licensing of audiovisual media

Commercial license.

Consulting license for engineering offices.

Consulting license for technical and economic communication offices.

Entrepreneur license.

License for a scientific and technical office.

License for recruitment agencies and rental services for domestic labor.

Industrial license.

Mining license.

Licensing of printing and publishing activities.

Professional licensing in partnership with a Saudi investor.

Real estate license.

Services license.

Transport license.

The terms and controls for granting licenses to foreign investors include the following:

The activity requiring a license for investment should not be among the list of activities excluded from foreign investment.

The product specifications, production methods, and materials must comply with the laws of the Kingdom. Should these laws be unavailable, reliance on the regulations of the European Union, the United States of America, or Japan must be relied upon.

The license applicant must be a natural or legal person coming to the Kingdom with the intention of investing.

The foreign investor should not have received any final verdicts due to substantial violations of the provisions of this law.

The foreign investor should not have received any previous verdicts regarding financial or commercial violations, either in the Kingdom or in other countries.

The granting of the license must not lead to a violation of international or regional agreements signed by the Kingdom.

As a result of investment facilities and incentives, granting investment licenses continued to rise in 2020. As per the Investment Highlights report for the third quarter of 2020 issued by the Ministry of Investment, 306 investment licenses were issued during said quarter, a 21 percent annual and 96 percent quarterly increase. Moreover, 68 percent of issued licenses were completed for 100 percent foreign-owned projects.

In the third quarter of 2022, the Investment Highlights report revealed the issuance of 1,163 new licenses (928 licenses excluding licenses issued under the anti-commercial concealment campaign). Construction activity secured 234 licenses, marking a 19.4 percent increase. Meanwhile, wholesale and retail trade activity sustained its investment allure, with 233 licenses issued for this sector during the quarter.

The Kingdom has worked to provide a conducive business environment to foster investment growth and develop various economic sector activities. Through the National Competitiveness Center and in collaboration with over sixty government entities, more than 550 legislative and procedural reforms have been implemented. These reforms have contributed to improving, facilitating, and developing the business environment in the Kingdom, laying a solid foundation for launching a new generation of reforms aimed at transitioning the economy towards global competitiveness. This comprehensive approach is centered around productivity, sustainability, and inclusivity, aligning with the objectives of Saudi Vision 2030 to position the Kingdom among the top ten most competitive countries globally.

The National Competitiveness Center has worked on providing several enablers for the business environment, including:

Enhancing procedures to secure a work environment that attracts investments, reduces transaction costs and duration to completion, and promotes digitalization.

Updating systems and work methods in companies and factories to align with the requirements of the local and global markets and production developments, and supporting the development of the workforce and expertise to increase productivity.

Boosting the competitiveness of strategic priority economic sectors in the Kingdom by developing financial policies to stimulate investment in them.

Monitoring government entities, ensuring the implementation of laws and provisions without discrimination in the public and between the public and private sectors, and sharing data related to government activities.

Developing the foundations of litigation and methods of obtaining rights through alternative dispute resolution mechanisms, as well as means of prevention and mitigation of conflicts.

Developing national skills in the Kingdom and nurturing talents to align with the Saudization plan across all sectors, ensuring the acquisition of skills needed in the current and future labor market.

Striving to achieve the Sustainable Development Goals (SDGs) that entail supporting the participation of women, youth, and rural areas in the labor market, and contributing to combating climate change.

Studying methods and action plans to support exports between the Kingdom and other countries, and developing trade relations and existing trade exchange agreements.

In the business environment in the Kingdom, there are numerous supportive components and investments, including:

Solid infrastructure.

Technical infrastructure.

Human capital.

Scientific research and innovation.

Commercial courts and judiciary.

Sectoral funds and government financing mechanisms for the private sector.

The National Competitiveness Center works on implementing numerous reforms aimed at enhancing the competitive environment by studying the obstacles and challenges facing both the public and private sectors, identifying and analyzing them to propose solutions and initiatives for implementing reforms at the level of laws and regulations. This is done to develop legislative and procedural environments that incentivize competitiveness improvement, relying on the strength of the integrated partnership relationship that it has built and enhanced with both governmental entities and the private sector.

Within the framework of creating a conducive investment environment, the reforms undertaken by the center encompassed several areas, including:

Legislative and regulatory reforms.

Reforms related to improving the business environment.

Reforms related to facilitating and automating the business environment.

Reforms related to enhancing women's participation in economic development.

Analysis of challenges and economic studies.

Many reforms have been implemented covering various aspects of investments and making the business environment more conducive. Among the legislative and regulatory reforms implemented in the Kingdom:

Allowing 100 percent foreign ownership in most sectors, including: health, engineering, wholesale and retail trade, mining, education, defense, transportation, publishing, and media.

Issuing the Contractors Classification Law.

Modifying the Law of Precious Metals and Gemstones.

Issuing the new Bankruptcy Law and its Implementing Regulations.

Issuing the Commercial Mortgages Law and its Implementing Regulations.

Developing the Implementing Regulations for the Capital Market Authority and the Companies Law to enhance the protection of minority investors.

Developing the Saudi Building Code bylaws.

Establishing the Saudi Center for Commercial Arbitration.

Issuing Resolutions 713 and 476 to seek public feedback on laws and regulations before being approved.

Issuing the new Government Tenders and Procurement Law and its Implementing Regulations.

Issuing the Securing Rights on Movable Assets Law and its Implementing Regulations.

Issuing the Law of Commercial Courts and its Implementing Regulations.

Among the reforms aimed at improving the business environment in the Kingdom are:

Container clearance at Saudi ports within twenty-four hours, through the single electronic window 'Fasah.'

Licensing for commercial activities to operate twenty-four hours a day.

Sixty minutes to complete real estate ownership transfer procedures.

Reducing the total requirements for investment licenses by 54 percent in accordance with international best practices.

Issuing a resolution not to obligate private sector establishments to have the official stamp for establishments, and to suffice with the ratification of the Chamber of Commerce.

Issuing a resolution not to impose any fees or financial compensation without studying the economic and social impacts.

Unifying the reference of the unified service centers to be under the supervision of one government entity.

Issuing the royal order to translate the laws and regulations related to the business environment into English.

Issuing the approval to publish commercial rulings issued by the Supreme Court on the Ministry of Justice website.

Issuing the approval to amend the time frame for updating the electricity tariff rates prior to their application to be at least thirty days after the date of its announcement.

Launching the private sector feedback platform, which aims to be a link between investors and government entities, and to study and analyze challenges and proposals.

Cancel the requirement to obtain a work visa approved by the cultural attaches for health practitioners, and be only satisfied with the (Mumaris plus) classification system issued by the Saudi Commission for Health Specialties.

As part of integrating sectors and providing opportunities for all investors without discrimination, efforts have been made to enhance women's participation in economic development in the Kingdom through the implementation of various reforms, including:

Standardizing passport issuance procedures and allowing women to travel without restrictions.

Non-discrimination between genders in accessing financial services.

Both the husband and wife have the right to obtain the family register from the Civil Affairs Administration.

Prohibition of dismissing women from their jobs during pregnancy.

Issuance of the Royal approval on the amendments to the scholarship and training regulation for empowering women.

Ensuring continued payment of salaries during maternity leave.

Equality in retirement age between both genders.

Prevention of gender discrimination in wages and jobs.

Empowerment of women to establish and engage in commercial activities without the need for prior approval.

Economic reforms also included facilitating and automating procedures in the Kingdom, including:

Reducing the number of restricted chemicals by 73 percent, from 131 to thirty-five, to facilitate import procedures.

Applying the system of fines to electrical service providers in cases of power o​utages and delays in service delivery.

Completing the online link between the Ministry of Foreign Affairs and the Chambers of Commerce in the Kingdom to certify the business sector's transactions electronically.

Completing the online link between the Ministry of Foreign Affairs and the Ministry of Justice to certify powers of attorney via Saudi embassies and consulates outside the Kingdom.

In alignment with the government's efforts to enhance transparency and economic reforms, the Bankruptcy Law was enacted in 2018 as part of trade, economic, and investment laws. It seeks to regulate bankruptcy procedures, encompassing preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation.

As outlined in Article Four, the provisions of the law apply to a natural person practicing a commercial activity, a professional activity, or activities with an aim to generate profits in the Kingdom; commercial and professional companies, regulated entities, as well as other companies and entities with an aim to realize profits, registered in the Kingdom; and non-Saudi investors, whether natural or legal persons, holding assets in the Kingdom or practicing a commercial activity, a professional activity, or activities with an aim to generate profits through a licensed entity in the Kingdom. The law shall only apply to the investor assets located in the Kingdom.

The procedures of the Bankruptcy Law aim to achieve several goals, including:

Enable the bankrupt debtor, the distressed debtor, or the debtor expected to suffer from financial difficulties to benefit from the bankruptcy procedures to restructure his financial position, maintain its activities, and support and advance the economy.

Ensure fair consideration of creditors' rights and ensure fair treatment.

Maximize the value of bankruptcy assets, ensure their orderly sale, and secure fair distribution of proceeds to creditors upon liquidation.

Reduce procedural costs and timeframe, and increase the efficiency thereof, especially in restructuring the position of the small debtors or the sale of the bankruptcy assets and the distribution of the sale proceeds among the same in a fair manner within a specified timeframe.

Undertake administrative liquidation of debtors who are not expected to generate sufficient proceeds from the sale of their assets to cover the costs of liquidation procedure or liquidation for small debtors.

The Kingdom has prepared various economic sectors for diverse investments aimed at economic diversification. This includes enhancing the investment environment, encouraging investment across different sectors, serving investors and entrepreneurs, empowering them to grow and expand regionally and internationally, and transforming the Kingdom into a leading global investment destination. A multitude of leading and vital sectors have been targeted by the goals of Saudi Vision 2030, empowered by numerous specialized programs and development strategies. This has resulted in a vast array of sectors with attractive competitive advantages and significant investment opportunities, including:

The industrial sector: It offers a significant opportunity to realize Saudi Vision 2030 by growing and diversifying the Kingdom's resources and economy. It benefits from an attractive climate based on advanced industrial cities, completed infrastructure, high-quality services, and an extensive logistics network.

The chemical industry sector: The Kingdom serves as a significant market for chemicals in the Middle East and North Africa region, and is home to numerous integrated chemical complexes. The value of this sector is being enhanced through the "Transformative Industries" program, which aims to stimulate industrial growth across various fields, making it the primary driver for the development of the chemicals industry sector.

The mining and metals sector: Itis experiencing rapid growth and expansion in line with Saudi Vision 2030. It is characterized by abundant raw materials in Saudi soil, as well as the Kingdom's strategic and important location, which provides local manufacturers with an excellent position for exports.

The communication and information technology sector: Itrepresents the vital center of the advanced industries world, with the Kingdom being one of the largest markets for information technology in the Middle East. It is distinguished by mega technological projects like NEOM, Waad al-Shamal, the Red Sea Project, and Qiddiya.

The energy and water sector: It is one of the Kingdom's important strategic sectors, offering significant opportunities for investors to activate their role and shape the sector's transformation. The Kingdom is classified among the leading and most advanced countries in the energy and water sector worldwide.

The healthcare sector: It iswitnessing continuous and increasing demand for growth. It is characterized by the availability of significant investment opportunities to drive economic growth, enable innovations, and activate advanced technologies.

The transport and logistics sector: The Kingdom's strategic location serves as a crossroad for important international trade between three continents: 'Asia, Europe, and Africa.' It is characterized by diverse transportation and logistics infrastructure, such as seaports, railways, roads, and airports. It also offers promising opportunities to contribute to the Kingdom's new transportation model.

The tourism, culture, and entertainment sector: The Kingdom is committed to attracting tourists from around the world to visit its breathtaking natural landscapes, rich cultural heritage, and UNESCO-listed archaeological sites. In addition, there are promising investment opportunities to stimulate domestic tourism.

The franchise presents numerous investment opportunities, especially in small and medium-sized projects. To ensure the rights of all parties involved in this activity, the Franchise Law was issued. As part of the efforts exerted by the Small and Medium Enterprises General Authority to support and develop the small and medium-sized enterprises sector in the Kingdom, the Franchise Center was established to contribute to the sustainability of this industry. It aims to create new horizons for investors and entrepreneurs to expand and develop their businesses.

The Franchise Law was issued in 2019, comprising twenty-seven articles. Franchise is defined as a right granted by a franchisor to a franchisee to run a franchise business on his own account under the trademark or under the brand name of the franchisor or the person licensed to use the same; this shall include transferring technical expertise and knowledge to the franchisee and specifying the manner of operation. Such right may be granted for a financial or non-financial consideration, excluding the amounts the franchisee pays to the franchisor in return for goods or services.

Per the law, a franchisor is a natural or legal person who grants a franchise under a franchise agreement; this shall include the master franchisee with respect to his relationship with the sub-franchisee. On the other hand, a franchisee is a natural or legal person who is granted a franchise under a franchise agreement; this shall include the sub-franchisee with respect to his relationship with the master franchisee.

Article Two of the law stipulated that the law aims to:

Promote franchise activities in the Kingdom by setting a legal framework that regulates the relationship between the franchisor and the franchisee, emphasizes the principle of freedom to contract, and lays down the foundations of this relationship based on the principle of transparency;

Provide the necessary protection for the franchisor and the franchisee, particularly upon expiry of the franchise agreement;

Ensure the disclosure of rights, duties, and risks relating to the franchise to assist a prospective franchisee in making informed investment decisions; and

Improve the quality of goods and services provided in the Kingdom and ensure their sustainability.

To enhance the regulation of franchise operations in the Kingdom, the Franchise Center was established under the umbrella of the Small and Medium Enterprises General Authority in 2019. It undertakes several key tasks, including:

Establishing the necessary conditions for practicing brokerage and mediation activities in a franchise.

Preparing programs and organizing necessary events to raise awareness about franchise activities, relationships, and opportunities.

Preparing informative and educational brochures and documents related to franchises.

Preparing studies, conducting research, and collecting information and statistics related to the franchise.

Raising awareness among practitioners of franchise activities about laws, regulations, and decisions relevant to their practice.

Working on resolving disputes that arise between franchisees and franchisors amicably through coordination with other competent centers.

Working on identifying the obstacles facing franchise activities, discussing them with relevant government entities, and developing suitable solutions for them.

The center contributes to achieving the objectives of Saudi Vision 2030 regarding increasing the contribution of small and medium-sized enterprises to the GDP and providing a significant opportunity for the expansion of local brands both domestically and internationally. Therefore, it aims to achieve key objectives, including:

Enhancing the Kingdom's status on the international stage and promoting it as a distinctive and attractive destination for global franchises.

Encouraging local Saudi brands capable of manufacturing products and providing services for regional and global expansion.

Contributing to education, knowledge transfer, and competency enhancement for both local brand owners and franchisees to compete across various sectors.

Encouraging entrepreneurs and innovators to obtain a franchise instead of establishing a new activity.

Facilitating access to financing for brand owners and franchisees.

Tomoh Franchise Program also supports franchise activities in the Kingdom. It aims to develop trademarks to operate under the Franchise Law and contribute to increasing the number of active brands in the Saudi market. The service aims to prepare Saudi trademarks for expansion through the Franchise Law, establish an operational system for Saudi trademarks, and target small and medium-sized enterprises.

The Public Investment Fund (PIF) is the sovereign fund of the Kingdom. Its presence and establishment in the Kingdom date back over fifty years, as it was founded in 1971. It serves as a national economic asset, contributing to the establishment of major domestic vital companies and funding many strategic projects for the national economy. Its existence has enabled the Kingdom's economy to progress rapidly, qualifying it to join the G20 group, which includes the world's strongest economies. The PIF aims to work towards achieving the objectives of Vision 2030, as it serves as the primary driver of the economy and investment in the Kingdom.

To achieve the objectives of Saudi Vision 2030, the PIF has adopted a mechanism that contributes to creating new and promising sectors, generating direct and indirect employment opportunities, and establishing and founding companies. The PIF owns leading investment portfolios, focusing on investing in promising opportunities both locally and globally. It is one of the largest sovereign funds in the world.

The PIF works towards its goal of becoming an active player in global debt markets and supporting the development of an active local market. It can leverage any short or long-term liquidity with a wide range of instruments. The PIF's Capital Markets Program aims to further develop its funding strategy and execution capabilities at both PIF and portfolio company levels and enable PIF (or its portfolio companies) to participate in global and local debt markets.

As part of efforts to develop investments and explore opportunities, the PIF Program was launched in the fourth quarter of 2017 to bolster the PIF's status and position it as a pivotal arm for realizing Saudi Vision 2030. It is seen as a leading economic catalyst for the Kingdom and an effective element for a thriving economy.

The program aims to enhance the PIF's role as a driving force behind the diversification of the economy in the Kingdom and to develop specific strategic sectors by fostering and maximizing the impact of the PIF's investments. It seeks to position the PIF among the largest sovereign wealth funds globally, as well as establish strong economic partnerships that contribute to deepening the Kingdom's impact and role in the regional and global scenes.

The PIF Program works to enhance the economic and investment sustainability of the Kingdom through four direct objectives, through which it designs and develops initiatives based on several investment pillars. These pillars include launching promising local sectors, developing local real estate projects, launching and supporting megaprojects, and increasing and diversifying the PIF's global assets.

The PIF Program has achieved numerous significant accomplishments, including maximizing the PIF's assets, increasing the overall returns for shareholders, and expanding the establishment of local companies in various fields. Additionally, it has launched numerous national megaprojects, contributing to the creation of hundreds of thousands of direct and indirect jobs. Furthermore, the PIF's participation in non-oil GDP has increased.

To expand the portfolios and enhance the capabilities of the PIF, the program maintains its determined momentum towards doubling the PIF's assets under management to SAR4 trillion cumulatively by the end of 2025. This aims to position it as one of the largest sovereign wealth funds globally and the preferred investment partner, solidifying its position in shaping the future of the global economy.

The program strengthens the objectives of Saudi Vision 2030 through an ambitious strategy to empower the private sector and launch promising sectors. It commits to injecting no less than SAR150 billion annually into the local economy through new local projects until 2025. Additionally, it aims to increase the local content percentage in the PIF and its subsidiaries to 60 percent and create more than 1.8 million jobs cumulatively by the end of 2025. The PIF and its subsidiaries aim to contribute to the non-oil GDP by SAR1.2 trillion cumulatively by the end of 2025.

The strategy followed by the PIF includes the development of six investment portfolios, four of which are local and two are global, following a review of the assets under its management. They are:

International diversified investment portfolio.

International strategic investment portfolio.

Saudi gigaprojects portfolio portfolio.

Saudi real estate and infrastructure development investment portfolio.

Promising sector development and growing investment portfolio.

Saudi equity holdings investment portfolio.

The main sources of funding for the PIF include:

Capital injections from the government.

Government assets transferred to PIF.

Loans and debt instruments.

Retained earnings from investments.

The PIF invests in various new and promising sectors as part of its efforts to incentivize the private sector in the Kingdom. These sectors have the potential to create job opportunities, develop capabilities, and enable the local economy to compete regionally and internationally. These sectors include aerospace and defense, automotive, transportation and logistics, food and agriculture, construction and building components and services, entertainment, leisure, and sports, financial services, real estate, utilities and renewables, metals and mining, healthcare, consumer goods and retail, and telecom, media, and technology.

In 2022, the Kingdom took a major investment step by establishing five regional companies through the PIF targeting investment in the Hashemite Kingdom of Jordan, the Kingdom of Bahrain, the Republic of Sudan, the Republic of Iraq, and the Sultanate of Oman. This followed the launch of the Saudi-Egyptian Investment Company, with the targeted investment value reaching up to SAR90 billion (USD24 billion) in investment opportunities across various sectors.

These companies invest in various strategic sectors, including infrastructure, real estate development, mining, healthcare, financial services, food and agriculture, manufacturing, telecommunications and technology, and other strategic sectors. The establishment of these five companies will work to develop and enhance investment partnerships for the PIF, its portfolio companies, and the Saudi private sector, across numerous investment opportunities in the region. This will contribute to achieving attractive long-term returns and developing strategic economic partnerships with the private sector in those countries.

In support of investment activities, forty-four global companies received licenses to move their regional headquarters to operate in the Kingdom in 2021 under the Regional Headquarters Program for Global Companies, overseen by the Ministry of Investment and the Royal Commission for Riyadh City. The number of companies that have obtained licenses to establish regional headquarters in the capital, Riyadh, increased to 180 companies by November 2023, surpassing the targeted number of 160 global companies by the end of the same year.

The regional headquarters is defined as a unit of a multinational group duly established under the laws of the Kingdom to provide support, management, and strategic direction of its branches and subsidiaries operating in the Middle East and North Africa region.

The PIF has achieved many accomplishments, including establishing ninety-three companies in thirteen strategic sectors and providing more than 644,000 direct and indirect job opportunities. Additionally, the assets under its management have reached SAR2.63 trillion, as of January 2024.

In recognition of its role in establishing a massive investment ecosystem, both domestically and internationally, the PIF was awarded the Sovereign Wealth Fund of the Year in 2020. This acknowledgment came after its success in establishing new companies, forming leading financial entities, and investing in future projects aligned with its strategy and responsibilities to support efforts aimed at achieving Saudi Vision 2030.

The Kingdom has numerous initiatives, centers, and authorities, which support the investment process and contribute to establishing an integrated business environment and ecosystem that facilitate various investment activities. These include:

One of the institutions that focuses on facilitating the procedures for business start-up, operation, and termination, as well as providing all related services and activities according to the best international practices. The center has sixteen branches in thirteen cities within the Kingdom.

The Saudi Business Center platform offers a variety of electronic government services, such as issuing preliminary licenses, establishing companies, and more. The center was successful in reducing the time required to start a business to thirty minutes rather than fifteen days, as well as the time required to extract the commercial registration to only 180 seconds. This has led the Kingdom to jump 103 spots in the Starting up Business Indicator, relevant to the World Bank Group's Ease of Doing Business Index 2020.

The electronic platform of the center includes the following services:

Issuance of a commercial registration (establishments).

Establishment of a limited liability company.

Establishment of a joint stock company.

Establishment of a simplified joint stock company.

Establishment of a partnership company.

Establishment of a limited partnership company.

Establishment of a company under an investment license.

Amendment to articles of association/bylaws.

Aligning companies.

Commercial registeration extract.

Adding authorization.

Filing financial statements.

Declaration of guarantee rights.

E-commerce authentication.

Inquiring about an authenticated e-store.

Assisted Inquiry for the National Directory of Economic Activities (ISIC4).

Inquiring about engineering offices on Balady

Inquiring about certified engineering and technical offices by Salamah.

Inquiring about certified safety and elevator companies by Salamah.

Initial licensing for private schools, centers, and institutes.

Media license.

To bolster the Kingdom's competitive standing among global economies, the National Competitiveness Center was established as an independent government center in 2019. It enjoys an independent legal personality and is organizationally linked to the Council of Economic and Development Affairs. It aims to enhance the Kingdom's ranking in relevant global indices and reports by identifying, studying, and analyzing the obstacles and challenges facing both the public and private sectors. This involves proposing solutions, initiatives, and recommendations, as well as monitoring their implementation and launching a new wave of legislative and procedural reforms.

The center works on enhancing and developing the competitive environment in the Kingdom through the integration of sectors, as part of efforts to achieve the objectives of Saudi Vision 2030 and enhance its global competitiveness. It seeks to achieve several objectives, including:

Working on enhancing and developing the Kingdom's competitive environment and raising its ranking in relevant global reports and indices.

Communicating with governmental and private entities, including concerned civil and non-profit associations and institutions, and building partnerships with them to serve the NCC's goals and objectives for which it was established.

Suggesting plans aimed at raising the Kingdom’s competitiveness in various fields, discussing them with the concerned government and private entities, and working to develop them.

Reviewing and developing the relevant regulations, and proposing the necessary amendments in this regard, in agreement with the relevant government entities, following applicable legal procedures.

Conducting research and studies on topics related to the objectives of the center.

Identifying obstacles and challenges related to enhancing the competitive environment, providing feedback, proposing necessary reforms in this regard, and monitoring the compliance of entities concerned with their implementation.

Concluding memoranda of understanding and cooperation with government entities and the private sector to unify efforts aimed at improving the competitive environment in the Kingdom.

Following up on the commitment of government entities to carry out the necessary reforms to improve the Kingdom's competitiveness.

Organizing forums and conferences, and holding local, regional, and international seminars and workshops that deal with the competitive environment, in accordance with applicable legal procedures.

Monitoring and analyzing all indicators and reports that have an impact on the competitive environment in the Kingdom, issued by reputable international organizations, and working to improve the Kingdom's ranking in it, in cooperation with the relevant entities.

Building strategic partnerships with global competitiveness development organizations and centers.

Benefiting from the practices and experiences of countries that ranked advanced in international competitiveness reports and indicators.

As part of the National Competitiveness Center's efforts to facilitate the business environment, the center, in coordination with the Official Translation Department at the Bureau of Experts at the Council of Ministers and forty government entities, has translated over eight hundred legal documents in implementation of a royal decree issued in 2020, which required the translation of laws, regulations, and requirements related to the business sector. The goal is to streamline procedures and enable both local and foreign investors to access information related to commercial activities in the Kingdom electronically.

The 'Invest Saudi' initiative is one of the effective online platforms in facilitating the foreign investment ecosystem. It serves as one of the marketing channels for the investment environment in the Kingdom. Consequently, the Kingdom's ranking in the '2020 Ease of Doing Business' Index issued by the World Bank improved by twenty-nine positions. Additionally, it has led to a 54 percent increase in new foreign investments in the Kingdom in 2019 compared to 2018.

The platform keeps pace with modern global investment practices and has been developed and launched as one of the Saudi Vision 2030 realization initiative. "Invest Saudi" works to facilitate investor work and remove obstacles to investments that support the Kingdom's economic growth and enhance its role as a major player in the global business economy.

"Invest Saudi" was specifically designed to provide clear, unified, and effective information on investment opportunities in the Kingdom for foreign and local investors on the one hand, and private sector companies on the other. It is the main starting point for foreign investors seeking assistance and support in the stages preceding, accompanying, or following their entry into the Kingdom. The website (investsaudi.sa) is one of the most prominent marketing channels for the "Invest Saudi" identity to present the investment environment and competitive advantages of the Kingdom, highlight promising investment opportunities in all sectors, and facilitate communication with investors locally and globally.

Among the work strategies of "Invest Saudi" is its role in unifying messages and efforts between all ministries and government entities to enhance the Kingdom's position as an attractive investment destination and shed light on various business and investment opportunities, as part of its support for the Kingdom's long-term economic growth. It aims to achieve several objectives, including:

Transforming the Kingdom into a global investment powerhouse and achieving the desired goals of Vision 2030.

Enhancing the status and reputation of the Kingdom among investors by highlighting attractive opportunities and successful experiences.

Providing appropriate opportunities for investors, each according to their field, to support their activities in the Kingdom.

Increasing investors' awareness of the country's historical and civilizational prosperity, and immense untapped potential of the Kingdom.

Creating an investment environment characterized by high efficiency and ease of doing business by working and cooperating closely with local and international partners.

One of the significant investment initiatives in the Kingdom, it was launched in 2017 and serves as an international platform in the field of investment and an annual forum. It brings together investors, innovators, and leaders from around the world, possessing the capacity to shape the future of global investment.

The initiative aims to achieve several goals, including leveraging investment opportunities to drive economic growth, empowering innovation, and harnessing advanced technologies, in addition to exploring and addressing global challenges. It also works towards continuing to build an effective network that includes influential stakeholders on the global stage. Additionally, it sheds light on emerging sectors that will shape the landscape of international investment and influence the future of the global economy in the coming decades.

The Thakaa Center is one of the investment initiatives that contribute to empowering investments in the Kingdom. It is one of the specialized centers in emerging technologies that work on empowering establishments and entrepreneurs, contributing to realizing Saudi Vision 2030. This is done through contributing to the creation of innovative startups and increasing the efficiency of small and medium-sized enterprises.

The center works on enabling the small and medium-sized enterprises sector to employ advanced technologies to develop these establishments and increase their competitiveness. It also serves as a link between entrepreneurs and decision-makers in their specialized fields. It has two branches, one located in the city of al-Khubar in the Eastern Province, which is the Thakaa Center for Data Analytics and Artificial Intelligence, specializing in AI and data analytics. The other branch, Thakaa Center for Internet of Things and Cyber Security, is in Riyadh City and focuses on the Internet of Things (IoT) and cybersecurity.

The center aims to offer diverse programs to serve various segments of beneficiaries, and its objectives include:

Small Businesses Support: Adding a competitive advantage to small and medium-sized enterprises that helps them to stay in the market and reduce the possibility of them leaving.

Empowering entrepreneurs: Creating more startups, improving their quality, and assisting them in launching an initial product that can be offered in the market.

Building skills and motivating the ecosystem: This is done by raising the efficiency of the national human capital, preparing them for the skill and knowledge requirements of the Fourth Industrial Revolution, and enhancing the role of the innovation system.

The Small and Medium Enterprises General Authority "Monsha'at" was established in 2016 to develop and support small and medium-sized enterprises through collaboration with strategic partners in the public, private, and third sectors, both locally and internationally. Its objectives are to regulate, support, develop, and foster the small and medium-sized enterprises sector in the Kingdom according to the best global practices. The aim is to increase the productivity of these enterprises and raise their contribution to the GDP from 20 percent to 35 percent by 2030.

Monsha'at's activities are diverse and aimed at serving small and medium-sized projects. It focuses on preparing, implementing, and supporting programs and projects to promote a culture and thought of freelancing, entrepreneurship, innovation, and initiative. Monsha'at also works on diversifying the sources of financial support for establishments and stimulating initiatives in the venture capital sector. Additionally, it sets policies and standards for financing projects classified as small and medium-sized, while providing administrative and technical support to assist these establishments and aiding them in developing their managerial, technical, financial, marketing, human resources, and other capabilities.

The authority's activities also include supporting the establishment of specialized financing companies, activating the role of banks and lending funds, and incentivizing them to play an active role in financing and investing in establishments. It involves creating and supporting programs necessary for the development of establishments, as well as establishing comprehensive service centers for establishments to issue all their regulatory requirements and the like. This is achieved through the active and electronic participation of relevant public and private entities.

In line with technological advancements aimed at streamlining procedures and business operations, the Furas electronic portal has been launched. It serves as the unified database and main reference for all investors seeking real estate and municipal investment opportunities offered by all government entities across different investment activities. This contributes to the development of Saudi cities' economies.

The portal aims to achieve several objectives, including providing an integrated digital journey for investors from purchasing RFPs to signing contracts and site handover. It facilitates access to investment opportunities for the development of Saudi cities while saving time and effort for investors.

The portal offers promising investment opportunities for certain entities, including small and medium-sized enterprises, large enterprises, and entrepreneurs, across a wide range of investment sectors. These sectors encompass trade, finance, industry, health, education, sports and entertainment, tourism, agriculture, environment, community, transportation, automobiles, maintenance, repair, and installation, construction and real estate management, public services, apparel and textiles, and public utilities.

To strengthen the relationship between the private sector and government entities, the Private Sector Feedback platform has been launched. It is an electronic platform aimed at enhancing the interaction mechanisms between the private sector and government entities by receiving feedback and suggestions from the private sector and identifying the challenges it faces. Subsequently, these inputs are directed to the relevant government entities. This comes in addition to working on what the standards of challenges and obstacles apply directly by the center in cooperation with other government entities.​ ​

The platform aims to achieve several objectives that support investments, including: enhancing communication between the public and private sectors, developing mechanisms to address challenges raised by the private sector, involving the private sector in decision-making processes, and raising the private sector's awareness about reforms in the economic business environment.

The Public Consultation Platform was launched to further enhance procedures and provide insight into regulatory and legislative changes conducive to the business climate. It is a unified electronic platform affiliated with the National Competitiveness Center to survey public opinions, government entities, and the private sector regarding laws, regulations, and the like issued by government entities related to the economic and developmental environment before their enactment.

The platform enables individuals, government entities, and the private sector to provide feedback and observations on projects related to economic and developmental affairs, thereby contributing to the creation of a secure and stable investment environment. It provides one of the tools of organizational development, namely (public consultation), aimed at enhancing the transparency and efficiency of the legislative environment. This is achieved through the participation of the public and private sectors, as well as the general populace, in the legislative process, and by leveraging the feedback received on projects before their adoption.

This initiative is one of the initiatives aimed at supporting the activities of major local and foreign strategic investors. It aims to develop a suite of services offered to these major local and foreign strategic investors within and outside the Kingdom. Through a program offering preferential advantages to address the challenges faced by investors with various government entities, it contributes to improving the investment environment and opens up new attractive avenues for investment.

The initiative also involves contributing to the sustainability of the solutions provided to investors, aiming to enhance confidence. This leads to diversification of economic activity, increased GDP, and job creation, in line with Saudi Vision 2030. The initiative also aims to provide distinctive services to both local and foreign strategic investors. This includes launching a targeted program tailored for strategic investors, incorporating exclusive services, preferential advantages, and eligibility criteria. Moreover, it seeks to establish a comprehensive investment relationship with targeted investors and enable government entities and government companies to offer preferential services to major investors.

The targeted segments of major foreign investors include companies, institutions, and branches owned by foreign investors and licensed by the Ministry of Investment, which meet the eligibility criteria for joining the program. As for major local investors, they include companies, institutions, and branches owned by citizens of the Kingdom or citizens of the Gulf Cooperation Council countries, which also meet the eligibility criteria for joining the program. Additionally, potential major foreign investors include companies, institutions, and branches that are not registered with the Ministry of Commerce and are not licensed by the Ministry of Investment in the Kingdom.

The Miza Initiative is one of the supportive initiatives for investment in the Kingdom. It is part of the national strategic initiatives for investment, conceived to enhance the experience of investment partners in the Kingdom. It is a controlled and clear electronic platform that facilitates their access to the private sector business service providers.

The Miza Initiative provides advisory services with a specialized team of experienced professionals, continuous support through the electronic platform, and assistance in overcoming challenges and removing obstacles to achieve goals, thereby contributing to saving time and effort. It also offers a variety of services, including:

Financial and tax advisory services: Providing a high level of financial services and consultations to investors with a high level of professionalism to support them in the growth and expansion of their businesses.

Business formation and legal services: Offering comprehensive support in the business formation stage, including providing templates and tools to assist investors in facilitating and streamlining their business operations.

Logistics services: Providing an exceptional range of services that cater to logistical needs, public relations, and translation to facilitate the movement of investors and arrange their accommodation simultaneously.

Real estate leasing services: Offering a range of real estate services that support investors in their business ventures, ensuring they have an exceptional experience.