Saudi Arabia offers a dynamic and robust economy, perfect for serving the world’s most demanding markets.
Dynamism and growth.
The performance of both Saudi Arabia and MENA’s economies have exceeded world growth. Meanwhile, Saudi’s non-oil sector has delivered accelerating growth rates as the economy diversifies. Encouraged by robust GDP growth and macroeconomic stability, consumer confidence is well above the regional average. Growing private credit and increased public expenditures on infrastructure and other projects provide a broad basis for robust opportunities across the Middle East, but in Saudi Arabia these are translating into particularly strong and sustained growth in domestic demand KSA itself has never been more committed to supporting economic growth.
Foreign investment
The variety of domestic and export-oriented investment opportunities in Saudi has attracted steadily increasing foreign direct investment as the economy has been progressively opened. Saudi Arabia’s rapid improvements have made the country an increasingly attractive destination for investment. The World Investment Report 2009 measured Saudi Arabia’s FDI inflows to be the 14th largest in the world and the highest amount in the MENA region. The country’s growth in FDI inflows was especially impressive in light of the global economic downturn, which caused international investment levels to drop significantly in the second half of 2008.
Economic stability
Sound macroeconomic management and an inflection point in world energy markets have made the KSA’s economy stable, despite the global financial crisis. Saudi Arabia’s economy ranks 3rd in the world for macroeconomic stability as a result of “a healthy fiscal environment, relatively low interest rates, and inflation that has been kept under control.”
Market size
As the region’s largest economy and the world’s 24th largest exporter, the sheer size of the markets that Saudi-based projects serve is “a competitive advantage, allowing Saudi businesses to benefit from economies of scale.” With excellent access to Saudi and other MENA markets, as well as the advanced and emerging economies of nearby Europe and Asia, market exposure for Saudi-based projects is not only vast but also highly diversified.
Cluster development
Investors in Saudi Arabia enjoy increasingly well-developed business clusters and value chains that set the nation apart from its neighbors and from other emerging economies. The World Economic Forum ranks the Kingdom 39th in the world for Local Supplier Quantity and 35th for both Value Chain Breadth and Production Process Sophistication. Well established, competitive and efficient, Saudi Arabia’s domestic industries—from energy and chemicals to transportation—provide industrial projects with exceptional opportunities for cost savings.