Saudi foreign investment licenses rise by 77%

Official data showed on Sunday that the rate licenses for investment projects in Saudi Arabia are issued has increased by 77 per cent year-on-year during the third quarter of 2017.

Eighty-seven new licenses were issued during the third quarter of this year compared to 44 licenses in the corresponding period of 2016.

According to data released by the General Authority for Investment in Saudi Arabia, licensed capital increased by 385 per cent to 1.502 billion riyals ($400.5 million) in the third quarter of 2017, compared to 310 million riyals ($82.7 million) in the corresponding period last year.

In the third quarter of 2017 the industrial sector attracted the largest share of investment, with 47 per cent in terms of the value of invested capital.

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A report issued by the United Nations Organisation for Trade and Development (UNCTAD) shows that the volume of foreign direct investment flowing to Saudi Arabia declined by 7.4 per cent to $7.5 billion in 2016, compared to $8.1 billion in 2015.

Saudi Arabia suffered a sharp fall in revenues in 2016, prompting austerity measures and cuts to spending, a concern for foreign investors.