Trade & Investment
From The Report: Saudi Arabia 2019
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Firming oil prices have brought about an improvement in Saudi Arabia’s trade balance in 2018. The government’s longer-term ambition, however, is to protect itself from the uncertainty of the energy market by diversifying the export base away from hydrocarbons. The Kingdom’s newly formulated economic strategy also aims to boost foreign investment, thereby reducing the economy’s dependence on public spending. Both of these objectives are being pursued through a cross-government effort that is reshaping Saudi Arabia’s business environment. The changes being made to the legislative and regulatory frameworks that govern trade and investment bode well for economic growth in the long term, although concrete results in the short term have yet to be secured. This chapter contains an interview with Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority.

Articles from this Chapter

Overview

Preferential terms: The authorities sign new trade agreements and expand export markets while ushering in legislative and regulatory reforms
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Firming oil prices have brought about an improvement in Saudi Arabia’s trade balance in 2018. The government’s longer-term ambition, however, is to protect itself from the uncertainty of the energy market by a diversifying the export base away from hydrocarbons. The Kingdom’s newly formulated economic strategy also aims to boost the level of foreign investment in the country, thereby reducing the economy’s dependence on public spending for growth. Both of these objectives are being…

Interview

Open doors: Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority, on reforming the legal framework and expanding foreign ownership to improve services and boost investment
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Interview:Ibrahim Al Omar What is being done to boost investment? IBRAHIM AL OMAR: We are taking a number of measures to attract and retain investment in non-oil sectors utilising our new Invest Saudi portal. Prior to setting up a business, investors are provided with intelligence reports and meetings with local stakeholders are facilitated. Particular support is given to financial institutions and businesses with government licences. Furthermore, significant efforts have been made to ensure…

Overview

Shifting trade winds: Regional integration among emerging economies and a raft of new multilateral agreements bolster international trade – Saudi
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Global trade faces protectionist headwinds that are dampening the outlook for growth in the coming years. According to the World Trade Organisation, trade volumes grew by 4.7% in 2017 and are expected to have moderated slightly to 4.4% in 2018 and dip to 4% in 2019. Although this means growth will fall below the 4.8% average recorded since 1990, it is still some way above the 3% average achieved since the 2007-08 global financial crisis. Nevertheless, significant uncertainty driven by an escalating US-China tariff war, acrimonious Brexit negotiations, and wariness surrounding US involvement in several multilateral trade agreements is affecting…

Overview

Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future – Saudi
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Decades of growth in trade and foreign investment have made the economies of the world more interdependent than ever before. The production of goods and, increasingly, the provision of services has become fractured across borders as corporations integrate into regional and global value chains – a process reinforced by international trade and investment regimes. On aggregate, advanced economies have benefitted from these changes, while emerging markets have become the main drivers of growth around the world. However, recent years have seen a new scepticism towards globalisation emerge, alongside more protectionist policies that could…