Innovation and entrepreneurship attracted diverse funding partners to Saudi Arabia resulting in the finalisation of more than 53 per cent of investment deals in the first quarter of 2024, official data showed.
The latest report issued by the Ministry of Investment showed that sports deals accounted for 19pc of the 64 total deals during this period. Investors from the US and the UK topped the list with 11 and five deals respectively.
The kingdom’s strategic location and robust economy continue to attract foreign investors keen on supporting startups. In an interview with Arab News in April, Houssem Jemili of Bain and Company, said that the kingdom leads in technology spending in the Middle East and North Africa, with approximately 2.5 times more spending and this expenditure is growing annually.
Saudi Arabia boasts a mature and diverse set of funding partners, including government entities like the small and medium enterprises General Authority, known as Monsha’at, large investment funds, and venture capitalists, providing direct and indirect funding to startups and entrepreneurs.
Additionally, the kingdom’s significant investments in the sports industry align with its comprehensive Vision 2030 strategy, aiming to diversify the economy, foster private sector employment opportunities for citizens, and ensure a sustainable future. These initiatives collectively enhance the appeal of the Saudi market for sports investments.
The Investment Ministry, working alongside other government bodies, also plays a vital role in fostering the investment climate through numerous initiatives. These include organising 13 local and international events in various sectors, such as sports, technology, and mining as well as real estate, and manufacturing, during this quarter.
Additionally, the ministry participated in investment forums between Saudi Arabia and several countries, as well as hosted specialised global events with international participation.
These efforts aim to attract foreign direct investment, enhance bilateral relations with major trading partners, and bolster long-term resources for dynamic sectors in a rapidly evolving global economy, according to the ministry.
During the first quarter, the number of investment licences reached 3,157, a 93pc rise from the same quarter last year, excluding licences issued as part of the anti-concealment law enforcement.
The ministry issued the highest number of investment licences to Egypt, totalling 950, followed by Yemen at 346, India obtained 321, Syria was awarded with 180 permits, and Pakistan received 159.
According to the ministry’s report, the construction and manufacturing sector took the lead with 47pc of total permits.
Closely following are licences for vocational and educational activities, information and communication technology and accommodation and food services as well as wholesale and retail trade and automobile repairs.
These sectors accounted for 81.8pc of the total investment permits issued during this period.
On the other hand, real estate activity experienced the most significant year-on-year growth in investment licences, surging by 253.3pc. The Real Estate Future Forum, held in Riyadh earlier this year, witnessed the signing of agreements and memorandums of understanding valued at more than 100 billion riyals ($26.6bn).
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