Mehmet Saridal’s Post

✍ Recent data has confirmed concerns raised last year about Saudi Arabia's massive investments in football and futuristic cities potentially increasing its oil dependence. In 2018, the kingdom required oil prices of $44 per barrel to fund imports and outward remittances. However, by early 2024, this break-even price had surged to $71 per barrel, marking a significant 61% increase. This striking rise in Saudi Arabia's oil price requirements reveals that despite ongoing diversification efforts, the country's ambitious projects are actually deepening its reliance on oil revenues. The situation highlights the challenge Saudi Arabia faces in balancing its grand economic transformation visions with fiscal realities, raising questions about the sustainability of its current economic strategy and the potential risks of its high-stakes approach to development and diversification.

In recent years, Saudi Arabia is intensifying efforts to attract foreign investment and establish itself as a lure for investors to achieve its Vision 2030. The Kingdom’s ongoing provision of facilities and services has resulted in the formation of an exceptional investment base and environment in Saudi Arabia, owing to the country’s enormous oil and financial wealth. In the start of 2023, foreign investments totaling 8.1 billion Saudi riyals were brought into Saudi Arabia, a 10.3% rise from the previous year. More details about Saudi Arabia’s Foreign Investment in this article: arabisklondon.com/9752 #invest #saudiarabia #saudivision2030 #saudiarabiabusiness

𝗘𝘅𝗰𝗶𝘁𝗶𝗻𝗴 𝗡𝗲𝘄𝘀: 𝗦𝗮𝘂𝗱𝗶 𝗔𝗿𝗮𝗯𝗶𝗮'𝘀 𝗖𝗿𝗲𝗱𝗶𝘁 𝗥𝗮𝘁𝗶𝗻𝗴 𝗨𝗽𝗴𝗿𝗮𝗱𝗲𝗱 𝗔𝗴𝗮𝗶𝗻! 🔆 𝙈𝙤𝙤𝙙𝙮'𝙨 Raised Saudi Arabia's credit rating to Aa1 from Aa2. Reasons: ✔️ Increased policy predictability. ✔️ Positive impact of government decision-making on the private sector. ✔️ Structural reforms. ✔️ Reduced reliance on oil revenues. ✔️ Ongoing improvement in fiscal capacity. ✔️ Mitigation of debt-related risks. ✔️ Enhanced financial and monetary stability. ✔️ Zero gap between foreign and local currency ratings, supported by a substantial foreign exchange reserve, indicating very low transfer and convertibility risks. 𝙎&𝙋 𝙂𝙡𝙤𝙗𝙖𝙡 Raised Saudi Arabia's rating to A/A-1. Reasons: ✔️ Structural reforms. ✔️ Economic and fiscal improvements. ✔️ Reduced dependence on oil revenues. ✔️ Continued economic strengthening reforms. ✔️ Implementation of non-oil economic diversification programs. ✔️ Sustainable management of oil revenues. #SaudiArabia #FinancialStability #EconomicDiversification #policy #impact #government #private #oil #improvement #risks #currency #substantial #management #economicgrowth #economy

As a result of Saudi Arabia's regulation allowing foreign companies to establish regional headquarters in the kingdom, analysts believe that the country's non-oil economy will be supported and jobs will be created in the Arab world's largest economy. The regulation, which requires firms to set up a local base in the kingdom or risk losing out on government contracts, took effect on Monday. A company with foreign operations not exceeding one million Saudi riyals ($266,000) may operate without establishing a local headquarters in the kingdom. As part of its Vision 2030 agenda, Saudi Arabia aims to increase foreign direct investment and diversify its economy away from oil. To improve economic output, the kingdom hopes to have 480 global companies establish headquarters in the kingdom by 2030. #saudiarabia #saudivision2030 #riyadhexpo2030 #riyadh2023 #riyadh #business #businessgrowth #economy #gcc #mena #menaregion #investment Source - National

Saudi Arabia is strategically positioned to expand its economy and shift away from its traditional reliance on oil exploration. Embracing structural reforms and public investment programs, the country is setting a course for sustainable growth and enhanced global engagement. However, although the Saudi government is sending clear signals that it intends to attract foreign capital, investors still need to keep in mind that there are certain weaknesses to be considered. To see our expert economic outlook and a sector analysis of how Saudi-led investments have performed, read our latest Foreign Direct Investment (FDI) report in full at https://buff.ly/4arXg6Y #FDI #ForeignInvestment #HLBInsights #StrategicInvestment #GlobalAdvisory

Raising to such top rating only comes from key factors , leadership with a strong vision followed by structured and sustainable reforms in a stable growing country .

With a transformative $2.5 trillion investment, Saudi Arabia is reshaping its economy beyond oil. Thanks to strategic initiatives by the Ministry of Industry and Mineral Resources (Ministry of Industry and Mineral Resources), the Kingdom is unlocking vast potentials. Saudi Arabia is setting the stage for a prosperous, diversified future. Discover more on the link below: https://lnkd.in/gG-RyRWN 

Foreign investors and companies are looking at Saudi Arabia like the green land of opportunities it is, with Q1 2024 recording $2.6B of foreign direct investment net inflows.

Saudi Arabia: Foreign Direct Investment Rises by 5.6% in Q1 🔝 Net inflows of foreign direct investment (#FDI) into Saudi Arabia increased by 5.6 percent, reaching 9.5 billion riyals ($2.53 billion) in the first quarter of 2024. 🔸️ Government data released on Sunday showed that incoming flows rose by 0.6 percent to 17 billion riyals in the first three months compared to a year earlier, while outgoing flows decreased by 5.1 percent to about 7.5 billion riyals. 🔸️ Earlier this month, foreign investors bought more than half of the shares offered by Aramco in its second offering, valued at $11.2 billion. #saudiarabia #businessdevelopment #economicgrowth

After multiple visits to UAE I finally came to Saudi Arabia. Financial District looks really impressive, contemporary and cozy. Saudi Arabia's capital markets have significant growth potential due to ongoing economic reforms, increasing foreign investment, and the nation's Vision 2030 initiative. The country has been working to enhance regulatory frameworks, improve transparency, and attract more investors. With a strong focus on diversifying its economy beyond oil, Saudi Arabia is positioning itself as an attractive investment destination in the region. #SaudiArabia #Riyadh #FinancialDistrict #BusinessTalks #TaurimasVALYS #GlobalFinance #InternationalBusiness