Foreign investments in the Kingdom rise by 600% in the sectors of "finance, insurance" and "health care"

Foreign investment in the finance, insurance and health sectors jumped 600% in the second quarter of this year compared to the same period last year, bringing new investment licenses seven sector licenses for a license in 2018.
According to the analysis of the Al-Eqtisadiah newspaper reporting unit based on data published by the General Authority for Investment, the sectors "Construction", "Communication and Information" and "Manufacturing industry" were the most attractive for foreign investment in the second quarter of this year, which together accounted for 54% The total number of licenses granted to foreign investment in Saudi Arabia is respectively 61, 51 and 45.
In terms of countries, Egypt and France recorded a strong increase in foreign investment in Saudi Arabia in the second quarter of this year compared to the same period in 2018, reaching the first 450% (22 licenses vs. 4 licenses ) and 375% in the second (19 licenses against 4 licenses).
This comes with the completion of foreign investment licenses increased significantly by one quarter to 291 new licenses in the second quarter of this year, compared with 143 licenses for the same period of 2018, an increase 103.5% and an increase of 148 licenses.
On a quarterly basis, the number of foreign investment licenses increased by 9% (24 licenses) compared to 267 in the first quarter of this year.
This increase coincides with important trade reforms in Saudi Arabia, including the launch of a distinctive residency system allowing foreigners to fully take over companies, real estate investments and direct equity investments, as well as removing the upper limit of the number of foreign strategic investors in the Saudi capital market.

The most attractive sectors
The construction sector was the most attractive sector for foreign investment in Saudi Arabia in the second quarter of this year, with 61 new licenses representing 21% of total licenses granted to all sectors. The number of new licenses granted in the sector increased by 307% year-on-year, compared to 15 in the second quarter of 2018.
The telecommunications and information sector ranks second with 51 new licenses, representing 18% of all licenses granted to all sectors. The number of new licenses granted in the sector increased by 20% in one year and reached 20.
Third, the manufacturing sector was dissolved with 45 new licenses representing 15% of the total licenses granted to all sectors. The number of new licenses granted in the sector increased by 27% in one year, reaching 27.
Fourth, the professional, scientific and technical sector has arrived with 35 new licenses representing 12% of the total licenses granted to all sectors. The number of new licenses granted in the sector increased by 59% in one year, reaching 22.
The retail and wholesale sector comes in fifth place with 23 new licenses, representing 8% of all licenses granted to all sectors. The number of new licenses granted in this sector increased by 77% compared to 13 in the second quarter of 2018.
The management and support services sector ranks sixth with 20 new licenses representing 7% of all licenses granted to all sectors. The number of new licenses granted in the sector increased by 233% year-on-year, compared with six in the second quarter of 2018.
Then come the hotel, catering, transport and warehousing, finance and insurance and health care, with respectively 13, 6, 7 and 7 licenses.

Countries most invested
In the second quarter of this year, UK companies were the main driver of foreign investment in Saudi Arabia, with 45 new licenses representing 15% of total licenses granted to all countries.
The number of new licenses granted increased by 150% year-on-year, compared with 18 in the second quarter of 2018.
India was followed by 29 new licenses, representing 10% of the total licenses granted to all countries. The number of new licenses granted increased by 11% in one year.
Third, the United States has 23 new licenses, or 8% of all licenses in all countries. The number of new licenses granted increased by 16% in one year.
Jordan, Egypt, France, the United Arab Emirates and China were followed by 22, 22, 19, 17 and 9 licenses respectively.
FDI in Saudi Arabia in 2018 jumped 126.1 percent, up $ 1.79 billion to $ 3.21 billion from $ 1.42 billion in 2017.
According to a previous analysis of the economic report, based on UNCTAD data, the growth rate achieved in 2018 is the highest of the period analyzed from 2008 to 2018 (11 years).
Saudi Arabia has overtaken the GCC and Arab countries in terms of the growth rate of foreign direct investment over the past year.
Saudi Arabia has been ranked second among the world's best investment destinations for 2019, according to a report by the US News website, which includes 80 US countries.
The report, which is based on the results of a survey of more than 7,000 specialists and decision-makers in the finance and corporate sector, ranked the Kingdom as the second best investment destination. to the world, because of the strength of its economy, with local production of $ 683.8 billion, as well as the ideal location promising Investments, according to UN data.
* Economic Reporting Unit