Saudi Arabia and China move to build industrial and investment partnerships
- 40 percent of non-oil GDP is non-oil domestic investment
Saudi Deputy Minister of Investment for Economic Affairs and Investment Studies, Dr. Saad Al-Shahrani, participated in the strategic investment dialogue session between Saudi Arabia and the People’s Republic of China, held within the Select Financial Markets Forum in Shanghai, organized by Saudi Exchange (Tadawul).
He called on Chinese companies to take advantage of the opportunities offered by the Kingdom and to participate in building the next generation of industries. He noted that the next chapter of Saudi-Chinese investment partnership lies in joint investment, construction, innovation, and growth, emphasizing that the Kingdom represents an investment destination that combines stability and resilience on one hand, and opportunities and growth on the other.
Al-Shahrani outlined the economic and investment transformations the Kingdom has witnessed since the launch of Saudi Vision 2030. He pointed out that the size of the Saudi economy has doubled over the past decade, while domestic investment, measured by gross fixed capital formation, has also doubled. Furthermore, the private sector’s contribution to total domestic investment has doubled.
He highlighted that the stock of foreign direct investment (FDI) in the Kingdom has doubled, with FDI inflows increasing by approximately five times. The number of foreign companies operating in the Kingdom has grown by more than tenfold. Additionally, women’s participation in the labor market has doubled, and the unemployment rate among Saudi nationals has decreased by 50 percent.
He clarified that non-oil domestic investment now accounts for about 40 percent of non-oil GDP, placing the Kingdom second among G20 countries after China. He noted that the National Investment Strategy has exceeded its targets for both domestic and foreign investment every year since its launch. Moreover, the Kingdom has entered the list of the top 10 countries globally in the Foreign Direct Investment Confidence Index.
Dr. Al-Shahrani explained that investor confidence is reflected not only in the influx of new capital into the Kingdom but also increasingly in business expansion, reinvestment, and long-term investment commitments. He stressed that the Kingdom does not wait for investment opportunities but actively creates them.
He indicated that Saudi Vision 2030 has not been limited to improving the investment environment; it has also contributed to the emergence of new sectors, industries, and opportunities in tourism, mining, manufacturing, logistics, technology, the digital economy, and other emerging sectors. This shift has transformed investments from a result of growth into one of its main drivers.
He clarified that the next phase will focus more on attracting higher-quality and more productive investments, moving from measuring investment solely by its volume to measuring its economic impact through its contribution to GDP, productivity enhancement, technology and knowledge transfer, creation of high-quality jobs, opening new markets, and boosting exports.
