By: Ingy ElSafy
Riyadh – Mubasher: Saudi Arabia has hosted the sixth edition of Future Investment Initiative (FII) for three days this week, during which Saudi and regional entities participated in a carbon credit auction that followed the creation of the Regional Voluntary Carbon Market Company by the Public Investment Fund (PIF) and the Saudi Tadawul Group Holding Company.
International speakers, global delegates, CEOs, policymakers, investors, entrepreneurs, and young leaders attended the event which adopted the theme of Investing in Humanity: Enabling a New Global Order.
During the period from 25 to 27 October, Saudi ministers as well as international officials addressed the current global conditions and economic status at the event, which took place at King Abdulaziz International Conference Center in Riyadh, in addition to unveiling projections for the coming years.
Minister of Finance
The world is currently witnessing difficult circumstances, yet the GCC and Arab countries, mainly Saudi Arabia, are in a better position to combat these conditions over the coming six years, the Saudi Minister of Finance, Mohammed Al Jadaan, noted.
Al Jadaan pinpointed that Saudi Arabia already warned against the dangerous conditions surrounding the economy around the globe amid the repercussions of the COVID-19 pandemic, in addition to declines in investment rates in various sectors and the importance of international cooperation to overcome the challenges.
Regarding the fields of energy, food, and investment in climate change initiatives, the minister noted that the Saudi Green and Middle East Green initiatives need global efforts. He urged the region to do more reforms through plans.
Minister of Investment
Meanwhile, Saudi Arabia’s Minister of Investment, Khalid Al Falih, stated that the future of the global economy in 2023 is uncertain. Al Falih attributed this to high inflation rates and low purchasing power, adding that trade policies have become unpredictable because of several factors like rising energy prices, climate change, and others.
As for transformation in trade and supply chains; if the matter is placed in the context of globalisation, “it will continue to persist and expose countries, companies, and individuals to the stage of guarantee, and each country will spend from its gross domestic product on many different industries,” the Saudi news agency SPA cited Al Falih.
Minister of Economy and Planning
The Minister of Economy and Planning, Faisal Alibrahim, shed light on how emerging sectors and the development of new job opportunities are currently driving long-term value for Saudi Arabia.
Alibrahim mentioned the country’s multi-billion-dollar Supply Chain Resilience Initiative which was launched earlier in October 2022 with a goal to position the Kingdom as a location of choice for leading global industrial companies.
Flash estimates by the Saudi General Authority for Statistics (GaStat) earlier showed that the real gross domestic product (GDP) increased by 11.8% year-on-year (YoY) in the second quarter (Q2) of 2022.
Saudi Arabia’s economy and planning minister stated: “Our challenge is diversifying our sources of growth. One good indicator in that direction is our non-oil GDP. Non-oil GDP in Saudi Arabia has growth at 6.1% in the last quarter. The highest in 11 years.”
Alibrahim noted that sovereign wealth funds can help the world on many global issues and many important investment opportunities, adding: “What PIF helps us do in this transitional period, is crowd-in the private sector, make more bold statements, and absorb the inefficiencies of new sectors.”
Minister of Industry and Mineral Resources
The Kingdom’s Minister of Industry and Mineral Resources, Bandar Al Khorayef, noted that Saudi Arabia’s National Industry Strategy aims to provide an attractive investment environment to allow them to have competitive returns when pumping investments.
Al Khorayef added that the strategy is set to achieve more economic diversification while offering different sources of income, in addition to offering quality jobs for Saudi citizens and motivating them to develop their talents to endorse the sustainable industrial sector.
The minister stated: “The National Strategy benefits the international side, as it combines product and quality, and at the same time combines our goals and ambitions, and supports the products industry using modern and unique technologies, taking into account when designing them that they are practical, implementable, realistic and actual."
Al Khorayef further said: "We are determined to double our industrial exports by 2030, and raise the number of our factories to around 36,000 factories by 2035, in addition to our participation in global supply chains, and to be a global center to reach the Middle Eastern, African, and Asian markets."
Saudi Arabia’s National Industry Strategy focuses on 12 sub-sectors and will likely create over 800 investment opportunities at a total value of SAR 1 trillion to achieve economic returns in Saudi Arabia by 2030. In line with the national strategy, the Kingdom plans to manufacture and export more than 150,000 electric cars by 2026.
Vice Minister of Industry for Mining Affairs
Khalid Al Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs, said that incentives amounting to $200 million were spent over the past years to stimulate digital transformation, renewable energy, and energy efficiency.
Al Mudaifer referred to Saudi Arabia’s incentives of factories and stations that are willing to attract the young generation to implement programmes for them, stressing how technology is essential for surveying, prospecting, manufacturing, producing green hydrogen and green minerals, as well as reducing the environmental impact of carbon. He added that the goal is to be in line with the development of several sectors across Saudi Arabia, including oil and gas.
The official added that the Kingdom adopts a vision for minerals, clean energy, and fossil fuels, besides investments in new technology to help in making the Kingdom a global hub for green energy and minerals.
Al Mudaifer further referred to the incentives and regulations for mining experts and discoverers, in addition to the potential for up to 90% cost savings once materials are used and processed inside Saudi Arabia.
He stated: "The second edition of the International Mining Conference, which will be held in Riyadh in January of next year, will be a significant event during which we will discuss investments in the mining sectors."
Saudi Arabia welcomes all investments in the mining sector as well as investment systems in technology and infrastructure, Al Mudaifer added.
UNWTO Regional Director for the Middle East
Basmah Al Mayman, Regional Director for the Middle East at the UN World Tourism Organization (UNWTO) pinpointed the concept of wellness tourism as one of the most growing tourist products in the tourism industry worldwide.
Al Mayman also highlighted how wellness of tourism has a role in cultural diversity, interfaith dialogue, respecting beliefs, as well as sustainable tourist development, psychological improvement, realising inner peace and harmony with others and the surrounding environment.
It is worth noting that six regional countries, including Egypt, are witnessing the establishment of six companies affiliated to Saudi Arabia’s sovereign wealth fund PIF to pump investments in each of the markets, according to the announcement by Crown Prince Mohammed bin Salman bin Abdulaziz, Saudi Arabia’s Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of PIF, during the FII event.
