Saudi Crown Prince hails foreign investors, pledges housing relief
In a rare national address, Saudi Arabia’s Crown Prince Mohammed bin Salman walked a tight line on Wednesday night between preaching the need to attract foreign investment and acknowledging the strain it has put on the kingdom’s housing supply.
“Perhaps the fact that 660 international companies have chosen the Kingdom as their regional headquarters, exceeding the 2030 target, reflects the achievements in infrastructure and the level of technical services, confirming the strength of the Saudi economy and its broad future prospects,” the Crown Prince said in his annual speech to the opening session of the Shura Council, Saudi Arabia’s consultative body that advises the Royal Court on draft laws and policy.
“All of this, and other achievements, have made the Kingdom a global hub attracting diverse activities,” he said, in comments published by Arab News.
The Crown Prince said the state recognized that strong public finances, which are “not reliant on a single, volatile source of revenue,” were essential for development and sustainable diversification.
He also gave a nod to rising concerns about housing affordability, admitting that property prices in some areas had reached “unacceptable levels” and vowing to take measures to reduce costs and increase the range of housing options available, Bloomberg reports.
An influx of demand from new residents has seen home prices in Riyadh nearly double since 2019, while prices are also rising in the holy cities of Medina and Mecca, which were opened up to foreign investment via publicly-traded companies in February.
Despite the tight market, foreigners will be allowed to own property in designated zones in Riyadh and Jeddah starting next year under a new law that was approved in July. The move will make the cities more competitive with cosmopolitan neighbors Dubai, Abu Dhabi and Doha, where housing markets are booming amid an influx of foreign buyers.
Egypt to launch mining survey in bid for international investors
Egypt is planning a nationwide geological survey of mining sites that are likely to attract foreign investment.
The study will compile detailed geological data and map potential deposits of gold, copper and other minerals across the country, Minister of Petroleum and Mineral Resources Karim Badawi said in a statement.
The information will be made available to prospective investors to support bidding in upcoming exploration tenders.
As part of the initiative, the ministry plans to coordinate with international consultants and local institutions to update and digitize existing geological records.
Foreign direct investment in Saudi Arabia bounces back
Saudi Arabia appears to be rebounding from a slowdown in foreign investment that has strained government budgets and forced cuts in some of the kingdom’s most ambitious construction projects.
First-quarter figures released on Sunday showed that inflows of foreign direct investment reached $6.4 billion, a 24% jump from the same period in 2024 and the best start to a year since 2022.
Saudi Arabia has been prodding trade partners to invest more heavily in the kingdom amid low oil prices that have led to growing budget deficits.
Slowing FDI over the past three years is enabling the UAE to overtake Saudi Arabia this year in the value of awarded construction projects, Bloomberg reports, citing data provided by the Middle East Economic Digest.
Halfway through 2025, the UAE has approved an estimated $31 billion in contracts, compared to Saudi Arabia’s $20.6 billion. If the trend continues, it will be the first time the UAE comes out ahead in awarded contracts since 2018.
Gulf states vie for investors on Swiss resort’s frigid streets
As the World Economic Forum opened Monday on the icy streets of Davos, Saudi Arabia and the UAE were beckoning delegates to come in from the cold – touting a range of gatherings inside their well-heated pavilions on the Swiss ski resort’s main drag.
Saudi House, an all-in-one base at 105 Promenade Street that the kingdom is using to attract foreign investment, will feature programs and exhibits prepared by 13 separate agencies.
They range from the Investment and Tourism ministries to the Royal Commission for AlUla – the ancient desert city, now a center for museums and resorts – to the Diriyah Company – which is carrying out a $63 billion overhaul of Riyadh’s historic core.
Walk-in visitors are generally treated to assorted varieties of Saudi dates and cardamom-infused coffee. Saudi House will also be hosting more elaborate luncheons and dinner meetings during the week.
“The kingdom’s approach to unlocking its potential involves really rewriting the economic playbook,” Saudi Economy and Planning Minister Faisal Alibrahim told Arab News in an interview published today.
“This is not just about investments or the government spending money,” he said. “This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the kingdom led today by the government.”
Down the road at 68 Promenade Street, the UAE will also have a crowded schedule. On Tuesday, G42 Chief Operating Officer Mansoor Al Mansoori will host Brad Smith, Vice Chair and President of Microsoft, for a public chat on “how global cooperation can address challenges like ethical governance, inclusivity, and shared innovation.”
Saudi Arabia has patterned its own annual business forum after the Swiss gathering, establishing the Future Investment Initiative conference in 2017 that was immediately dubbed “Davos in the Desert.”
At its eighth edition last October, some 7,000 movers and shakers poured into Riyadh for the get-together that takes place at the opulent Ritz Carlton hotel and in the vast halls of the adjacent King Abdul Aziz International Conference Center.
Getting a jump on the confab, the developers of Saudi Arabia’s trillion-dollar-plus Neom project invited a select group of financiers, celebrities and influencers to a kickoff event at Sindalah Island, five kilometers off the kingdom’s west coast.
The Red Sea resort island, where an ecosystem is rising of super-luxury hotels, swank night clubs and an 86-berth yacht marina, hosted a beach party headlined by Grammy Award winner Alicia Keys. She sang to an audience that included actor Will Smith, tennis champ Rafael Nidal and former NFL quarterback Tom Brady.
Back in the capital, FII featured a bevy of investment bankers, hedge fund founders and corporate titans who are veterans of Davos and have become regulars at the Saudi conference, showcasing its aspirations for global influence.
Among the speakers on the main stage were bankers Larry Fink, Chairman and CEO of BlackRock; Ben Horowitz, co-founder of Andreesen Horowitz Jane Fraser, CEO of Citi; Ken Griffin, Founder and CEO of Citadel. Others included Dame Julia Hoggett, CEO of the London Stock Exchange; Ruth Porat, President and Chief Investment Officer of Alphabet and Google; and Ben Horowitz, co-founder of Andreesen Horowitz.
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The three-day event was introduced by Yasir Al-Rumayyan, who is Governor of the Saudi Public Investment Fund and Chairman of Aramco. Richard Attias, who hosts and produces the Saudi conference as CEO of the FII Institute, was earlier in his career producer of the WEF conference in Davos.
Saudi Arabia says now it’s time for all of you to start investing in us
Saudi leaders are amplifying their message that foreign investment is a two-way street.
As the kingdom’s 27th World Investment Conference kicks off today in Riyadh, Cabinet ministers and other top officials are letting other nations know that putting money into the Saudi economy would be especially appreciated after decades of their being on the receiving end.
In a warm-up statement before the conference, Saudi Investment Minister Khalid Al-Falih said: “We look forward to welcoming investment leaders from around the world to forge partnerships that will benefit both the kingdom and global economies.”
Saudi Arabia’s inflows of foreign direct investment barely rose in the first half of the year from the same period in 2023, contributing to delays in the target dates for several projects that are part of the kingdom’s Vision 2030 economic overhaul plan.
Among the conference speakers: Saudi Minister of Economy and Planning Faisal Alibrahim; Prince Sultan bin Khalid, CEO of the Saudi Industrial Development Fund; Egyptian Investment Minister Hassan Khatib; Alastair King, Lord Mayor of London; Christophe Farnaud, EU Ambassador to Saudi Arabia and Nivruti Rai, CEO of Invest India.
Meanwhile, Saudi Arabia’s credit rating was raised by Moody’s Investors Service for the first time, citing the kingdom’s efforts to diversify its economy beyond oil.
And Saudi regulators granted licenses to Citigroup and Morgan Stanley to set up regional headquarters in Saudi Arabia, a prerequisite for getting government contracts in the kingdom.
UAE foreign assets pegged at $2.5 trillion by investment chief
A new interview with the UAE’s foreign investment chief puts the country’s current assets abroad, both government and private, at an estimated $2.5 trillion.
Jamal Bin Saif Al Jarwan, Secretary-General of the UAE International Investors Council (UAEIIC), also told the Emirates New Agency WAM that the portfolio is doing well despite economic headwinds.
The UAE’s international investment footprint is topped by sovereign wealth funds holding 72% of the assets, Al Jarwan noted.
Abu Dhabi Investment Authority (ADIA) is the leading foreign investor, followed by Mubadala Investment Co., Investment Corporation of Dubai, Emirates Investment Authority and ADQ.
All told, the UAE owns seven sovereign wealth funds with assets exceeding $2 trillion, trailed by government-owned and quasi-governmental companies with 18%, UAE banks with 2.5% and 7.5% originating from family-owned and private companies.
The “most prominent” deal in 2023 was between U.S. private equity firm Apollo and ADIA to acquire chemicals manufacturer UniVar for $8.1 billion, he said.
Saudi Arabia promotes Tadawul market’s strength amid IPO boom
Saudi Arabia is touting the strength of its stock exchange as the Saudi Capital Markets Forum gets underway today in Riyadh. The two-day forum is being hosted by the Saudi Tadawul Group, the parent company of the kingdom’s main stock exchange that goes by the same name, which had a market cap of $2.9 trillion at the end of January.
The kingdom has sought to attract foreign investment through its capital markets by implementing reforms, aligning regulatory frameworks with international standards and gaining inclusion in major global indices while at the same time pursuing investor outreach and investing in technology and infrastructure, according to Saudi Tadawul Group CEO Khalid Al-Hussan.
The hard work appears to be paying off. IPOs in Saudi Arabia and the UAE have been booming since late 2021. The total number of shares traded on the Saudi exchange exceeded 8 billion in January, an almost fourfold increase from the prior January, according to data published by the exchange.
“Momentum is great, and all the indications so far for 2024 are excellent,” SNB Capital’s Head of Investment Banking Zaid Ghoul said in an interview with Bloomberg, highlighting a surge in share trading in recent months. The level of activity is encouraging more firms to prepare for IPOs, Ghoul said.
The Saudi Tadawul is also looking beyond capital markets. Last month, it announced plans to buy a 33% stake in the Dubai Mercantile Exchange, bolstering its position in global commodities markets. Once the deal closes, Saudi Tadawul will become the largest shareholder next to the CME Group and the exchange will be rebranded as the Gulf Mercantile Exchange.
Thinking shorter term: Most major stock markets in the Gulf fell in early trading today after data showed U.S. producer prices increased more than expected in January, adding to concerns over inflation and dampening hopes for early rate cuts by the Federal Reserve, Reuters reports. Most GCC countries, including Saudi Arabia and the UAE, peg their currencies to the U.S. dollar and follow the Fed’s policy moves closely.
