Net foreign direct investment in the Kingdom of Saudi Arabia jumped to 51.86 billion riyals (about $ 13.829 billion) in the second quarter of 2021, compared to about 3.098 billion riyals ($ 0.826 billion) in the same quarter of. 2020, with an increase of about 1574%, according to an analysis conducted by “Al-Arabiya.net, based on preliminary and estimated data from the Saudi Central Bank “SAMA”.
Similarly, net foreign direct investment in Saudi Arabia rose 664% in the second quarter of quest’year, compared to approximately 6.79 billion riyals ($ 1.81 billion) of net foreign direct investment in the first quarter of quest’year.
Saudi investment minister Khalid Al-Falih said in a previous interview with Al-Arabiya that the Kingdom will enjoy very high rates of foreign investment in 2021 and in the coming years.
He added that, despite the Corona pandemic and its repercussions on world economies, the Kingdom was in able to increase the level of foreign direct investment by 20% in 2020 and by 13% in the first quarter of quest’year.
He continued: “We are still in preparation phase and the process of attracting foreign investment has not been fully started, but the Kingdom has a powerful machine for domestic investment, such as the Public Investment Fund, which has launched large projects and several companies that will be the core of different sectoral groupings. “
Interestingly, the second quarter of 2021 saw Saudi Aramco agree in April 2021 to sell a minority stake in its pipelines for $ 12.4 billion to a consortium led by EIG, the company’s largest deal since a bid. public initial record in which raised $ 29.4 billion at the end of 2019.
Aramco will retain 51% of the newly formed Aramco Pipeline Company with rights to pay commissions for 25 years for crude oil shipped through the Saudi company’s network.
Net foreign direct investments in Saudi Arabia amounted to about $ 15.6 billion in the first half of 2021, compared to about $ 2.4 billion in the first half of 2020, an increase of about 550%.
Last year, net foreign direct investment in Saudi Arabia rose to about $ 5.4 billion, compared to about $ 4.6 billion in 2019, an increase of about 17.4%.
Earlier on Tuesday, Standard & Poor’s said the Kingdom of Saudi Arabia’s credit rating at A- with stable outlook, predicting a resumption of growth until 2024 driven by higher oil prices, easing OPEC production quotas and rising vaccination rates in Saudi Arabia.
The agency said that after the Covid-19 pandemic hit the economy, Saudi Arabia has returned to ambitious investment projects linked to its strategy to reduce the economy’s dependence on oil. The Fund for Public Investments and other entities in the oil and non-oil sector make significant investments.
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