Saudi Arabia’s economy has boomed over the past 50 years, ranking third in the world in terms of rapid GDP growth after China and South Korea. The resident’s income is expected to rise from US$25000 in 2012 to US$33500 by 2021. Today, as Saudi Arabia continues to diversify its economy away from the traditional pillars of the hydrocarbon industry, it is gaining a growing reputation as a major destination for foreign direct investment.

There is no doubt that the Kingdom has one of the world’s leading economies, as it is a member of the G20 Summit, in addition to being the largest and most successful economy in the Middle East and North Africa. The Kingdom of Saudi Arabia, of which oil supplies constitute one-fifth of the world’s resources, provides 38% of the Arab countries’ GDP.

As a leading member of the Gulf Cooperation Council (GCC), Saudi Arabia’s investment also provides an opportunity to enter the markets of the other five member countries (Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates) and to cooperate with other MENA economies free of tariffs.

Income tax, sales tax, and property tax are among the forms of taxation that are not imposed in the Kingdom’s tax system (although there is currently no VAT, it will be applied in 2022 by the Gulf Cooperation Council (GCC), including Saudi Arabia).

Tax exemption regimes are available for export earnings, and tax exemptions are applied to R&D investments. Foreign investors are awaiting new investment inducements. The corporate tax has been cut relatively by 20% on total corporate profits and a 5% cut tax. Any losses can be posted indefinitely and deducted from future taxes.

“Saudi Arabia occupies a strategic position known as Al Banan, which lies at the crossroads of Europe, Asia, Africa, and the Indian subcontinent.” “The kingdom has an excellent infrastructure and transport network, and is working to develop a generation of young people who have been, and continue to be, the key to many strategic decisions of the government.” Saudi Arabia was one of the first countries to be licensed for third-generation (2004) and fourth-generation (2011) communications services.

By 2015, mobile penetration had reached 167.5% and the kingdom had 52 million subscribers. Rapid urbanization in Saudi Arabia has helped develop modern transport systems, while the kingdom’s three major airports (Riyadh, Jeddah, and Dammam) continue to service a large and growing number of passengers and air cargo carriers.

The Kingdom of Saudi Arabia, which has one of the world’s top 20 economies and is the largest economy in the Middle East and North Africa region, ranks 44 out of 189 countries in terms of ease of business, according to reports submitted in 2020 on the International Finance Corporation. There are only two countries where the current account surplus is greater than the kingdoms over the past two decades and Saudi Arabia has developed and enhanced international cooperation.

In 1997, Saudi Arabia was the founding member of the Greater Arab Free Trade Area, and eight years later, the kingdom joined the World Trade Organization. It has also signed bilateral trade and investment agreements with several countries in Europe and Asia and has played an important role as a founding member of the Gulf Cooperation Council. The aim is to implement the GCC Customs Union regulations in 2004, which abolished internal customs duties.

The Kingdom of Saudi Arabia does not hide its desire to attract FDI, which is one of the most effective ways to diversify the economy and create jobs for future generations. The Kingdom’s Strategic Development Plan, which includes Vision 2030, confirms the Kingdom’s ambition to increase FDI from 3.8% of GDP to a world record of 5.7% of GDP by 2030.

In the National Transformation Program (NTP), which sets milestones by 2022, the kingdom plans to increase FDI from 30 billion Saudi riyals ($8 billion) to 70 billion Saudi riyals ($18.6 billion). Vision 2030 supports this goal, which reflects “the determination of the state to become a global investment power.”

Vision 2030 continues to confirm that the Kingdom of Saudi Arabia is working to develop its investment tools to realize the potential of its promising economic sectors, diversify its economies and provide job opportunities. It will also work to develop its economy and improve the quality of its services by privatizing some government services, improving the work environment, attracting the best expertise and investment in the world, and benefiting from its unique strategic location to connect the three continents.

Foreign investors can take advantage of a range of programs such as the Arab Monetary Fund, which supports the development of Arab capital markets and trade between member states, and the Arab Fund for Economic and Social Development, which funded the economy.

also, Social development projects for the Middle East and Arab trade, a trade finance program that provides medium-to-long-term loans to support trade. There is also financing for industrial projects through the Saudi Industrial Development Fund in addition to government financing mechanisms and other commercial banks.

The Kingdom of Saudi Arabia was intent on spreading its message and pushing it to participate in the spring of 2017 in a number of high-level international trade and diplomatic initiatives in as well as making practical legislative changes and developing smart strategic policies. A good example is King Salman’s visit to Japan and his meeting with Japanese Prime Minister Shinzo Abe in Tokyo.

During the meeting, the two leaders agreed to consolidate economic cooperation between the two countries by announcing the so-called Saudi-Japanese Vision 2030. Reports indicated that Japan considers Saudi Arabia an attractive market for infrastructure exports, while the two sides are studying ways to establish economic zones to attract more investments by Japanese companies to the Kingdom. Saudi Arab.

The global electronics giant Sony Corporation intends to strengthen its presence in the Middle East and Africa and increase its operations by 20 percent in 2021 by introducing a range of new products and developing an advanced business strategy in Saudi Arabia.