Saudi Arabia and the US signed 13 investment agreements on the sidelines of US President Joe Biden’s visit to the kingdom on Friday, as the Arab world's biggest economy seeks to attract more foreign direct investment for diversification.
The agreements cover sectors including energy, aerospace, defence, textiles, manufacturing, education and tourism, according to a statement from the Ministry of Investment of Saudi Arabia on Saturday.
“The agreements build upon a long-standing economic relationship and illustrate sustained US investor confidence in opportunities in the kingdom,” the ministry said.
In October last year, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the National Investment Strategy, which seeks to net 388 billion riyals ($103.47bn) in foreign direct investments annually according to state-run Saudi News Agency.
The kingdom also expects to increase its domestic investment to about 1.7 trillion riyals by 2030 under the new strategy.
Saudi Arabia, Opec’s top oil exporter, is focused on diversifying the economy under its Vision 2030 programme, which aims to cut its dependence on hydrocarbons and develop local industries and manufacturing capabilities.
The National Investment Strategy, which is one of the main pillars of Vision 2030, is expected to contribute to the growth of the local economy.
Under the strategy, Saudi Arabia aims to increase the contribution of the private sector to its gross domestic product to 65 per cent and increase FDI’s share to 5.7 per cent of its GDP.
The strategy also aims to increase the proportion of non-oil exports from 16 per cent to 50 per cent, reduce the unemployment rate to 7 per cent and advance the kingdom to one of the top 10 positions in the Global Competitiveness Index by 2030.
US investment in Saudi Arabia has continued to grow over recent years, with 743 companies present in the kingdom and nearly 70,000 Saudis employed by US companies, the Ministry of Investment said.
The US and Saudi Arabia signed four memorandums of understanding concerning health care, according to the statement.
Other agreements include a partnership between the Ministry of Investment and aerospace company Boeing in areas relating to aircraft manufacturing, and an agreement between investment holding company Ajlan & Bros and US smart energy firm SolarEdge to explore investment in renewable energy.
The US entered into an agreement with the Royal Commission for Jubail and Yanbu, while private sector companies, such as Raytheon Defence Industries, Medtronic, Digital Diagnostics and IQVIA, also signed investment deals with firms in Saudi Arabia, according to state news agency SPA.
US President Joe Biden visits Middle East - in pictures
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US President Joe Biden waves from a plane at King Abdulaziz International Airport in Jeddah. AFP -
US President Joe Biden boards a plane at King Abdulaziz International Airport in Jeddah. AFP -
Mr Biden walks to the plane. AFP -
President Sheikh Mohamed in discussion with Mr Biden during the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit. Photo: Abdulla Al Neyadi for the Presidential Court -
US President Joe Biden attends the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit at a hotel in the Saudi Arabian Red Sea coastal city. AFP -
Saudi Arabia's Crown Prince Mohammed bin Salman attends the Gulf Co-operation Council GCC+3 meeting in Jeddah. AFP -
US President Joe Biden and Saudi Arabia's Crown Prince Mohammed bin Salman at the GCC+3 Jeddah Security and Development Summit. AFP -
President Sheikh Mohamed attended a traditional summit 'family photo call' in the company of, from left: Asaad bin Tariq Al Said, Omani Deputy Prime Minister for International Relations and Co-operation Affairs and the Special Representative of the Sultan; Sheikh Mohamed; Egypt's President Abdel Fattah El Sisi; Bahrain's King Hamad bin Isa bin Salman Al Khalifa; US President Joe Biden; Saudi Crown Prince Mohammed bin Salman; Jordan's King Abdullah II; Qatar's Emir Sheikh Tamim bin Hamad Al Thani; Kuwait's Crown Prince Mishal Al Ahmad Al Jaber Al Sabah, and Iraq's Prime Minister Mustafa Al Kadhimi. AFP -
President Sheikh Mohamed is received by Saudi Arabia's Crown Prince Mohammed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court -
President Sheikh Mohamed is received by Saudi Arabia's Prince Mohamed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court -
President Sheikh Mohamed greets Sheikh Mishal Al Sabah, Crown Prince of Kuwait, during the GCC+3 Jeddah Security and Development Summit. Photo: Rashed Al Mansoori / Presidential Court -
US President Joe Biden and Secretary of State Antony Blinken meet Egyptian President Abdel Fattah El Sisi, Foreign Minister Sameh Shoukry and other officials during a bilateral meeting at a hotel in Saudi Arabia's Red Sea coastal city of Jeddah before the GCC+3 meeting. AFP -
US President Joe Biden meets Iraqi Prime Minister Mustafa Al Kadhimi, in Jeddah before the beginning of the GCC+3 meeting. Reuters -
Saudi Arabia's Crown Prince Mohammed bin Salman receives Sheikh Mishal Al Sabah, Crown Prince of Kuwait, before the GCC + 3 Jeddah Security and Development Summit on Saturday. SPA -
Saudi Arabia's Crown Prince Mohammed bin Salman and Egypt's President Abdel Fattah El Sisi arrive for the Jeddah summit. SPA -
US President Joe Biden participates in a working session with Saudi Crown Prince Mohammed bin Salman at Al Salam Palace in Jeddah. AP -
US President Joe Biden and US Secretary of State Antony Blinken in a bilateral meeting with Saudi officials led by Crown Prince Mohammed bin Salman at Al Salam Palace. Reuters -
Saudi Arabia's Crown Prince Mohammed bin Salman takes part in a working session with US President Joe Biden and his team. AFP -
Saudi Arabia's King Salman greets US President Joe Biden at Al Salam Palace in Jeddah. Photo: @spagov -
King Salman and US President Joe Biden in discussions at Al Salam Palace in Jeddah. Photo: @spagov -
US President Joe Biden meets Saudi Crown Prince Mohammed bin Salman in Jeddah. Photo: @spagov -
US President Joe Biden arrives at King Abdulaziz International Airport in Jeddah. Photo: @spagov -
US President Joe Biden is welcomed by Saudi Arabian officials. AFP -
Mr Biden disembarks from Air Force One at King Abdulaziz International Airport, following a flight from Tel Aviv. AFP -
US Presidents Joe Biden salutes as he boards Air Force One at Ben Gurion International Airport in Lod, near Tel Aviv en route to a meeting with the GCC+3 in Jeddah, Saudi Arabia. Reuters -
Israel's President Isaac Herzog, second right, and caretaker Prime Minister Yair Lapid, centre, bid farewell to US President Joe Biden at Ben Gurion Airport. AFP -
US President Joe Biden meets clergy at the Church of Nativity in Bethlehem, in the occupied West Bank. Reuters -
US President Joe Biden is introduced to local people at the Church of Nativity in Bethlehem. Reuters -
US President Joe Biden arrives at the Church of Nativity in Bethlehem, on the second full day of his Middle East visit. AFP -
US President Joe Biden and Palestinian President Mahmoud Abbas address the media after their meeting at the Muqataa Presidential Compound in Bethlehem, the occupied West Bank. AFP -
A photo of journalist Shireen Abu Akleh is placed on a chair as reporters wait for US President Joe Biden and Palestinian President Mahmoud Abbas to speak. She was killed in a raid by Israeli forces in May. The caption reads: 'Shireen Abu Akleh, voice of Palestine'. AP -
US President Joe Biden with Palestinian President Mahmoud Abbas at a welcome ceremony at the Palestinian Muqataa Presidential Compound in Bethlehem, in the occupied West Bank. AFP -
Palestinian President Mahmoud Abbas welcomes US President Joe Biden to the Israeli-occupied West Bank. Reuters -
A Palestinian security officer stands guard near the Church of the Nativity in Bethlehem in the occupied West Bank before US President Joe Biden’s official visit. AFP -
Palestinian and Israeli human rights campaigners lift banners during a rally near Augusta Victoria Hospital in East Jerusalem as US President Joe Binden visits. AFP -
US President Joe Biden greets fans as he attends the opening ceremony of the Maccabiah Games at Teddy Stadium in Jerusalem. AFP -
US President Joe Biden poses for a picture with US athletes competing in the Maccabiah Games. AFP -
People use the lights of their phones during the opening ceremony of the Maccabiah Games in Jerusalem, attended by US President Joe Biden. Reuters -
US athletes attend the opening ceremony of the Maccabiah Games in Jerusalem. AFP -
The Maccabiah Games coincided with the US President Joe Biden's visit to the Middle East. AFP -
US President Joe Biden, centre, Israel's caretaker Prime Minister Yair Lapid, right, and President Isaac Herzog attend the opening ceremony for the Maccabiah Games in Jerusalem. Reuters -
A Palestinian protester carries a placard during a demonstration in the occupied West Bank city of Ramallah as US President Joe Biden visited Israel. AFP -
In Gaza City, Palestinian demonstrators wave their national flag as they gather to protest against the visit by US President Joe Biden to Israel. AFP -
A billboard, part of a campaign organised by the Centre for Human Rights B'Tselem, installed before US President Joe Biden's arrival for an official visit in the West Bank city of Bethlehem. PA -
US President Joe Biden receives the Israeli Presidential Medal of Honour from Israeli President Isaac Herzog in Jerusalem. AP Photo -
US President Joe Biden, centre left, and President Isaac Herzog with children after Mr Biden's arrival at the presidential residence in Jerusalem. AFP -
US President Joe Biden signs the guest book in the presence of President Isaac Herzog on arriving at the presidential residence in Jerusalem. AFP -
US President Joe Biden with President Isaac Herzog and Mrs Michal Herzog in Jerusalem. AFP -
US and Saudi Arabian flags in a square in Jeddah, Saudi Arabia, before US President Joe Biden's visit. AP -
US President Joe Biden and caretaker Israeli Prime Minister Yair Lapid at a press conference at the Waldorf Astoria Hotel in Jerusalem. EPA -
President Sheikh Mohamed delivers the opening speech during the I2U2 summit, a meeting between the leaders of the UAE, India, Israel and the US. Seen with Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation. Photo: Presidential Court -
President Sheikh Mohamed speaks with Indian Prime Minister Narendra Modi, US President Joe Biden and Israeli Prime Minister Yair Lapid during the I2U2 summit. Photo: Presidential Court -
US President Joe Biden and caretaker Iraeli Prime Minister Yair Lapid address a joint press conference. AFP -
US President Joe Biden and Israeli caretaker Prime Minister Yair Lapid during their meeting at a hotel in Jerusalem. AFP -
US President Joe Biden speaks to Holocaust survivors Dr Gita Cycowicz and Rena Quint in the Hall of Remembrance, at Yad Vashem in Jerusalem. AP -
US President Joe Biden participates in a wreath-laying ceremony in the Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. AP -
Israel's President Isaac Herzog speaks with US Secretary of State Antony Blinken and US President Joe Biden during their visit to Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. Reuters -
Israeli Defence Minister Benny Gantz, left, US President Joe Biden, second left, caretaker Prime Minister Yair Lapid, right, and Brig Gen Shawn Harris, defence attache to the US embassy, in front of Israel's Iron Dome defence system during a tour at Ben Gurion Airport. AP -
US President Joe Biden waves as he leaves Israel's Ben Gurion Airport on his way to Jerusalem. EPA -
US President Joe Biden, centre, stands for the national anthems alongside Secretary of State Antony Blinken, second left, Israel's President Herzog, third left, caretaker Prime Minister Yair Lapid, third right, and departing prime minister Naftali Bennett, second right, at Ben Gurion Airport. AFP -
Caretaker Israeli Prime Minister Yair Lapid and President Isaac Herzog welcome US President Joe Biden to Israel as his trip begins. Reuters
US companies across energy, tourism, education, manufacturing and textiles sectors also joined hands with Saudi-based businesses to boost investment, SPA said.
Saudi Arabia’s Ministry of Communications and Information Technology (MCIT) signed a memorandum of co-operation with tech company IBM to train 100,000 young women and men over five years to position the kingdom as a centre for technology and innovation in the Middle East and North Africa region.
MCIT also signed a memorandum of co-operation with the US National Communications and Information Administration which involves 5G and 6G technologies.
The agreement aims to speed up the growth of the digital economy and the pace of research, development and innovation in the kingdom’s digital industries, according to the news agency.
The International Monetary Fund estimates that the Saudi economy will expand by 7.4 per cent this year, driven by higher oil revenue, a projected improvement in the country's non-oil gross domestic product and its efforts to diversify the economy.
The World Bank estimates that the country's economy will grow 7 per cent this year, while Jadwa Investment expects the economy to expand 7.7 per cent in 2022.
