Q2 2005 investments in Saudi Arabia up 4,596 per cent (46-fold)

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With investment licenses amounting to Saudi Riyal (SR) 24.4 billion ($6.5 billion) during Q1 2005, the figures show an increase of 768% over the same period from last year when investments were at SR2.8 billion ($747 million), (see chart I).

During Q2 2005, licensed investments totaled SR41 billion ($10.9 billion), a record 4,596% jump compared with investments licensed during Q2 2004, which were at SR867 ($231 million), (see chart II).

Combining both quarters, the SR65 billion ($17.3 billion) investment flow for the first half of 2005 shows a net increase of 1,670% compared with the figures from 2004 when licensed investments totaled SR3.7 billion ($1 billion), (see chart III).

Reflecting on implemented investment licenses since SAGIA was founded, SAGIA Governor Amr Al Dabbagh said: 'Field studies have shown that 50% of licensed investments have materialized.' 'We are aiming to increase this number to at least 80% within the coming two years,' stressed Al Dabbagh. The first mapping of implemented Foreign Direct Investments (FDI) exercise was completed recently as a joint project between SAGIA and the Economic and Social Commission for Western Asia (ESCWA).

SAGIA has been sharing the results of this field study with concerned international bodies including the World Bank and the United Nations Conference on Trade and Development (UNCTAD). Previously cited numbers on FDI in Saudi Arabia were inaccurate; field data proved real numbers were three times as previously thought, a positive indicator that will improve the ranking of Saudi Arabia's investment competitiveness. SAGIA is now the accredited body in Saudi Arabia responsible for publishing FDI figures. Despite the fact that foreign investments have been flowing into Saudi Arabia for over 40 years, this recent study is the first such specialized mapping to be conducted on the ground.