Dynamism and growth.
The performance of Saudi Arabia and MENA’s economies have exceeded world growth.
Meanwhile, Saudi’s non-oil sector has delivered accelerating growth rates as the economy diversifies.
Encouraged by robust GDP growth and macroeconomic stability, consumer confidence is well above the regional average. Growing private credit and increased public expenditures on infrastructure and other projects provide a broad basis for robust opportunities across the Middle East, but in Saudi Arabia these are translating into particularly strong and sustained growth in domestic demand KSA itself has never been more committed to supporting economic growth. Robust growth in government revenues is supporting double-digit increases in government expenditures on social, infrastructure, and other investment projects. Perhaps even more crucial in the long term, an increasingly deregulated and competitive economic environment is supporting an explosion of business formation as the private sector takes an increasingly prominent role in the economy.
The variety of domestic and export-oriented investment opportunities in Saudi has attracted steadily increasing foreign direct investment as the economy has been progressively opened. Saudi Arabia’s rapid improvements have made the country an increasingly attractive destination for investment. The World Investment Report 2013 measured Saudi Arabia’s FDI inflows to be the 33rd largest in the world and the 3rd largest in the MENA region.
Sound macroeconomic management and an inflection point in world energy markets have made the KSA’s economy stable, despite the global financial crisis. While much of the world economy has recently been affected by a global liquidity squeeze, Saudi Arabia’s twin surpluses in the government budget and current account have made KSA an attractive, high-liquidity environment for local and foreign ventures.
As the region’s largest economy and the world’s 19th largest exporter, the sheer size of the markets that Saudi-based projects serve is “a competitive advantage, allowing Saudi businesses to benefit from economies of scale.” With excellent access to Saudi and other MENA markets, as well as the advanced and emerging economies of nearby Europe and Asia, market exposure for Saudi-based projects is not only vast but also highly diversified.
Investors in Saudi Arabia enjoy increasingly well-developed business clusters and value chains that set the nation apart from its neighbors and from other emerging economies. The World Economic Forum ranks the Kingdom 22nd in the world for Local Supplier Quantity and 31st for both Value Chain Breadth and Production Process Sophistication. Well established, competitive and efficient, Saudi Arabia’s domestic industries—from energy and chemicals to transportation—provide industrial projects with exceptional opportunities for cost savings