Overview
The National Investment Strategy is a national strategy whose launch was announced by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister and Chairman of the Council of Economic and Development Affairs, on 5 Rabi' al-Awwal 1443 AH, corresponding to 11 October 2021. It is one of the key enablers for achieving the objectives of Saudi Vision 2030.[1]
The strategy aims to increase the quality and volume of investments in the Kingdom in a way that drives economic development and diversification within the framework of the Vision, targeting gross domestic product of 6.4 trillion riyals on a path towards the Kingdom becoming one of the world's 15 largest economies.[2]
Key Objectives
The strategy aims to raise the private sector's contribution to gross domestic product to 65%, strengthen foreign direct investment so that its contribution reaches 5.7% of gross domestic product, and reduce the unemployment rate to 7%.[1]
Its objectives also include raising the share of non-oil exports from 16% to 50% of total non-oil gross domestic product, increasing the ratio of investment to gross domestic product from 22% in 2019 to 30% in 2030, and advancing the Kingdom into the top ten in the Global Competitiveness Index by 2030.[1]
The Four Pillars and Initiatives
The strategy rests on four fundamental pillars: developing investment opportunities, targeting all types of investors, diversifying financing options, and enhancing competitiveness.[2]
These pillars are delivered through 40 executive initiatives that contribute to implementing the strategy's programmes and projects.[2]
Scale of Investments and Spending through 2030
The strategy aims to inject investments exceeding 12 trillion riyals into the domestic economy through 2030, distributed as 5 trillion riyals from the initiatives and projects of the Shareek programme, 3 trillion riyals from the Public Investment Fund earmarked for domestic investments, and 4 trillion riyals from the varied investments of national and global companies.[1]
This spending totals approximately 27 trillion riyals through 2030, equivalent to 7 trillion dollars.[1]
At the level of annual flows, the strategy aims to raise net foreign direct investment inflows to 388 billion riyals annually and increase domestic investment to about 1.7 trillion riyals annually by 2030.[1]
Governance and Oversight of Implementation
The Supreme National Investment Committee, chaired by His Royal Highness the Crown Prince and Prime Minister, oversees the implementation of the strategy's programmes and initiatives.[2]
Two committees are affiliated with it — the Committee for the Inventory and Development of Investment Opportunities and the National Incentives Committee — in addition to the Investors Council, which aims to communicate directly with investors.[2]
Results Achieved
Frequently Asked Questions
Q: What is the National Investment Strategy? A: It is a national strategy whose launch was announced on 5 Rabi' al-Awwal 1443 AH, corresponding to 11 October 2021, and it is one of the key enablers for achieving the objectives of Saudi Vision 2030.[1]
Q: What are the strategy's key objectives? A: Raising the private sector's contribution to gross domestic product to 65%, raising net foreign direct investment inflows to 388 billion riyals annually, increasing domestic investment to about 1.7 trillion riyals annually by 2030, and reducing the unemployment rate to 7%.[1]
Q: What are the pillars on which the strategy rests? A: Developing investment opportunities, targeting all types of investors, diversifying financing options, and enhancing competitiveness.[2]
Q: How much are the targeted investments through 2030? A: Investments exceeding 12 trillion riyals in the domestic economy, with total spending of approximately 27 trillion riyals, equivalent to 7 trillion dollars.[1]
Q: Who oversees the implementation of the strategy? A: The Supreme National Investment Committee, chaired by His Royal Highness the Crown Prince and Prime Minister, to which the Committee for the Inventory and Development of Investment Opportunities and the National Incentives Committee are affiliated, in addition to the Investors Council.[2]
Conclusion
The National Investment Strategy combines its launch on 11 October 2021 among the enablers of achieving Saudi Vision 2030 with a target of investments exceeding 12 trillion riyals in the domestic economy through 2030.[1]
Within the framework of the Vision Realization Programmes, the strategy's topics on the platform connect to the National Transformation Program and the National Industrial Development and Logistics Program.
Related topics
- National visions and programmesSaudi Vision 2030: A Framework for TransformationAn introduction to Saudi Vision 2030, its social, economic and institutional themes, and the relationship between implementation programmes, long-term targets and measured results.
- TopicThe Public Investment FundThe Public Investment Fund is a Saudi fund established in 1971 CE/1391 AH under Royal Decree No. (M/24), and linked in 1436 AH/2015 CE to the Council of Economic and Development Affairs. The assets it manages exceed SAR 3.4 trillion, and its activity spans three investment portfolios and giga-projects including NEOM, Qiddiya, the Red Sea, Roshn, and Diriyah.
- TopicNational Transformation ProgramThe National Transformation Program is the first executive programme of Saudi Vision 2030, launched in June 2016 to be the largest of the Vision's realisation programmes in terms of the strategic objectives assigned to it. The Program works to achieve 34 of the Vision's 96 objectives through more than 313 initiatives led by seven ministries and more than 50 participating entities.
- TopicNational Industrial Development and Logistics Program (NIDLP)The National Industrial Development and Logistics Program (NIDLP) is one of the most important and largest programs realizing Saudi Vision 2030, launched on 28 January 2019. It aims to transform the Kingdom into a leading industrial power and a global logistics platform through four main sectors: energy, industry, mining and logistics services.