Saudi Arabia, the Arab world’s biggest economy, has signed five investment agreements in aerospace, technology and finance in a bid to strengthen the kingdom’s position in global value chains.
The agreements were signed by the Saudi Ministry of Investment on Tuesday on the sidelines of the Future Investment Initiative in Riyadh.
In aerospace, the ministry linked up with Boston-based plane maker Boeing and local advanced metals maker Tasnee.
It signed another pact with the US space training company Orbite to develop investment opportunities in space tourism and entertainment.
Saudi Arabia aims to localise nearly 50 per cent of the aerospace and defence sector’s expenditure by 2030.
In the past, it has attracted investment from various companies in the aerospace and defence supply chain sector, from global original equipment makers and small and medium enterprises.
Major business reforms, including easy online licensing, 100 per cent foreign ownership and the establishment of the General Authority of Military industries as the regulatory body have enabled this swift progress.
The ministry also signed two agreements in technology and the finance sector.
It joined forces with the US biotech company Ginkgo Bioworks to expand capabilities in the kingdom.
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Saudi Arabia's Future Investment Initiative 2022 - in pictures
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Saudi Arabia's ambassador to the US, Princess Reema bint Bandar, speaks at the Future Investment Initiative conference in Riyadh. Reuters -
Noel Quinn, chief executive of HSBC Holdings Plc, speaks during a panel session on day two. Bloomberg -
Kamal Bahamdan, chief executive of Safanad Ltd. Saudi Arabia hopes the FII will put Riyadh on the map as a global destination for deals. Bloomberg -
Nelson Peltz, founder of Trian Fund Management, on day two of the conference in Riyadh. Bloomberg -
Saudi Minister of Finance Mohammed Al Jadaan speaks during a panel event. AFP -
A man in the mirror at the conference in Riyadh. Reuters -
Amin Nasser, chief executive of Saudi Aramco, front row fourth right, and Yasir Al Rumayyan, governor of the Public Investment Fund, front row third right, during day two of the conference. Bloomberg -
Amin Nasser, chief executive of Saudi Aramco, right, during a panel session. Bloomberg -
Yasir Al Rumayyan, governor of the Public Investment Fund, centre right, at the conference in Riyadh. Bloomberg -
Omar Abdulla Al Futtaim, chief executive of Al-Futtaim Group, arrives at a panel session on day two. Bloomberg -
David Grover, chief executive officer of Roshn Real Estate Co, centre, speaks to conference attendees. Bloomberg -
Steven Mnuchin, former US treasury secretary, appears onscreen during a panel session. Bloomberg -
Nabeel Alamudi, president of Olayan Financing Co, on day two of the conference in Riyadh. Bloomberg -
Sheikh Salman bin Khalifa Al Khalifa, Bahrain's Finance Minister, left, and Mr Mnuchin, second right, during a panel session. Bloomberg -
Saudi Energy Minister Prince Abdulaziz bin Salman at the annual Future Investment Initiative conference. AFP -
Princess Reema bint Bandar, Saudi ambassador to the US. AFP -
Jared Kushner, Donald Trump's son in law and founder of global investment firm Affinity Partners, was present. AFP -
Former Italy prime minister Matteo Renzi. AFP -
Saudi Arabia hopes the FII will put Riyadh on the map as a global destination for deals. Bloomberg -
Saudi Arabia also hopes to increase domestic investment through the event. Bloomberg -
Paddy Padmanathan of ACWA Power, centre. Bloomberg -
Lubna Olayan, chairman of Olayan Financing, speaks during a panel session. Bloomberg -
A busy FII conference hall between sessions. Bloomberg -
Jeannette zu Furstenberg, founding partner of La Famiglia venture capital fund, centre. Bloomberg -
Another busy concourse at the event. Bloomberg -
Omar Alsenayen of Jeddah Central Development Company, centre. Bloomberg -
The opening ceremony of the FII conference on a digital screen in the lobby of the Exhibition and Conference Centre at the Ritz Carlton Hotel in Riyadh. Reuters -
Arriving at the conference. AFP -
The queue at the entrance of the FII conference. Bloomberg
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The agreement intends to implement innovative public health technology, establish synthetic biology support for public health and provide other tools for training and data infrastructure.
It also signed an agreement with Korea’s Taihan Cable and Solution to set up a new, extra-high voltage cable and copper rod factory.
Saudi Arabia has had strong growth in foreign direct investment in recent years as the kingdom’s economic reforms have unlocked a broad range of opportunities for international investors.
Last year, the net FDI growth increased by 257.2 per cent, with inflows totalling almost $20 billion — the highest in 10 years, according to official figures.
This momentum continued into 2022, with inflows growing 10 per cent year on year in the first quarter.
Saudi Arabia is expected to be the fastest-growing G20 economy this year, due in part to sweeping pro-business reforms, with gross domestic product expected to expand by 7.6 per cent, the fastest growth in almost a decade, according to the International Monetary Fund.
The ministry also signed a deal with Brazilian financial company BTG Pactual, one of the Latin America’s largest investment banks, to establish a regional headquarters in Riyadh.
The agreements “illustrate sustained confidence in the kingdom as a world-class investment destination, one of the key goals of the National Investment Strategy launched a year ago”, an official statement said.
Last week, Saudi Arabia introduced an initiative that aims to attract global industrial companies to the kingdom and seeks to shore up 40bn riyals ($10.6bn) worth of investments in the first two years of the launch.
