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SAGIA was set up in 2000 by the Kingdom's Supreme Economic Council to help create a pro-business environment, promote inward investment and act as an intermediary between the global business community and Saudi government.
Last year, SAGIA issued 1,389 licenses for joint and foreign investment projects valued at $69 billion, 25 per cent more than the previous year.
In 2006, the World Bank's International Finance Corporation placed Saudi Arabia 38th out of 155 countries assessed in its "Doing Business in 2006" report, a major jump from the Kingdom's 67th ranking in 2005.
Changing attitudes
However, observers note that the bullish plan to move into the top ten in such a short time frame will require an immense effort and require not just substantial IT investments already under way but real and lasting changes in management and official attitudes to increase international competitiveness.
SAGIA itself is investing heavily in advanced computerisation and software including the latest CRM (customer relationship management) systems to streamline its own activities in order to speed up procedures for potential investors. Licences for investment can now be obtained without travelling to Saudi Arabia, the authority notes.
SAGIA says it is measuring progress in development of investment based on criteria set by leading global bodies including the World Bank's IFC, World Economic Forum and the International Institute for Management Development. A national centre for competitiveness has also been opened in Riyadh in the Al-Faisaliyah tower.
Five more overseas offices are to be established by SAGIA in 2007 adding to those already operating in the UK, Germany, Japan, Hong and Singapore. The focus is on attracting investment into sectors where the Kingdom holds recognised comparative advantages in particular petrochemicals, plastics and minerals development.
New cities
SAGIA is emphasising the projected new cities for investment at the same time as promoting the potential of the Kingdom's various regions including Assir, Abha as well as Tabuk, Hail, Madina and Jazan.
The Kingdom's planned new economic cities though are expected to attract the main thrust of these investments. So far developments of four new cities have been announced at Hail, Madinah, Jazan and Rabigh. Two more city projects are due to be launched in 2007 one in Tabuk in the north and another located in Eastern Province.
A key selling point is that the planned new cities will be equipped with state-of-the art telecommunications and information technology infrastructure. "We are going to distinguish ourselves from the rest of the world by being the ultimate, intelligent smart cities," Al-Dabbagh says.
