THE Saudi Arabian General Investment Authority (SAGIA) has unveiled that the volume of American investments in the Saudi market until 2018 exceeds SR207 billion with 373 companies having diversified activities in service, industrial, real estate, scientific and technical and temporary licenses.

The industrial activity accounted for the largest share with a funding of SR193 billion for 95 projects, followed by service activity with 245 projects and a funding of SR13.5 billion, commercial activities with 9 projects and a financing of over SR300 million, two projects in real estate activity with a funding of SR16 million and temporary licenses with 16 projects and a funding of SR2 million.

Investment Licenses

Sixteen new American companies entered the Saudi market during 2017, with a funding of SR382 million and 210 thousand riyals. The service sector accounted for the largest share of these licenses with 13 licenses amounting to SR284 million and 200 thousand, while the industrial sector was granted two licenses with a funding of SR 97 million and 510 thousand, and finally a single temporary license with a funding of SR 500,000.

Key Commodities and Products

The Saudi market is considered one of the most important US import markets. In 2016, the Kingdom supplied the US market with a number of products such as metal products, chemical and organic products, fertilizers, aluminum and its products, plastics and their derivatives, while the US market exports provided the Saudi market need for cars and their parts, air vehicles and their parts, medical, optical, photocopying, machinery, machine tools and their parts and electrical appliances and their parts.

Saudi Vision 2030 and SAGIA’S Efforts

The previous figures are a vivid example that Saudi Arabia has witnessed several major reforms in its investment environment in accordance with Saudi Vision 2030. This is part of the national efforts to enhance the business and investment movement in the Kingdom, where the Executive Committee “Tayseer” was established to improve business performance in the private sector with an aim of implementing initiatives to participate in economic development, and provide a stable and stimulating environment for the private sectors, along with the participation of several relevant government agencies, a number of international expertise houses and the private sector towards empowering the private sector. In return, the efforts contributed in attracting capitals from the world's largest countries and attracting foreign investments and the US in promising and targeted sectors through Saudi Vision 2030.

Saudi Arabia is closely and historically linked to the US, dating back to the 1930s and 1931, when King Abdul Aziz Al-Saud granted USA oil exploration rights in the Kingdom.

In 1932, the two sides signed the Temporary Commercial Diplomatic Agreement, followed by the Petroleum Exploration Agreement with American companies, the first treaty between the two countries in political and consular representation, judicial maintenance, trade and navigation. In 1972, the Kingdom imported several goods and products from the United States ($314 million), while Saudi exported $194 million to the United States.

In 1974, the Kingdom signed a joint statement with the United States to establish the Saudi-American Joint Committee for Economic Cooperation to meet the Kingdom's needs and materials at a stage in which the country witnessed a significant increase in development projects. The visits of King Abdullah in 2010 and the historic visit of Custodian of the Two Holy Mosques King Salman to the United States of America in September 2015, have all contributed to strengthen the bilateral relations between the two countries. — SG