The Winds of Change: Saudi Arabia seeks massive overhaul

For a long time, Saudi Arabia, the Gulf’s economic powerhouse, has been internationally viewed as a country with certain embedded attachments – whether economic (through their strong dependence on oil) or cultural and societal (for example through the country’s conservative norms and widespread adoption and promotion of Wahhabism.)

Anyone visiting Riyadh today, as I have done on three occasions since 2017, will soon get the sense that change is in the air. Even before the plane hits the tarmac, many of us planning a visit will have seen media coverage of stories ranging from the lifting of the driving ban for women and the multiple arrests of Saudi princes as part of an anti-corruption purge, to plans to invest in space ventures and the even the world’s first robot citizen.

This is not the Saudi Arabia many of us have had in our minds – and the country’s top leadership are eager to continue showing the world the new Saudi Arabia that is emerging as it sets about turning its much-vaunted Vision 2030 into a reality.

A visit to the country only affirms the sense that things are on the move – quite literally in the forms of new urban transport systems and skyscraper construction sites. Working with the Government further confirms this dynamism: in the few months between my first and second visits to the Saudi Arabian General Investment Authority (SAGIA), the Investment Attraction department was physically transformed from a dated, traditional government building into a massive open-plan floor with hot-desks, state-of-the-art facilities, and a flurry of new officers (and consultants!)

In collaboration with OCO Global, who are retained consultants to SAGIA, I have been co-delivering training workshops for both new and experienced officers on topics ranging from market intelligence, value propositions and pipeline development to investor facilitation and aftercare. It’s no understatement that the calibre of many of the agency’s officers is impressive – both in terms of their soft-skills and expertise in sectors ranging from ICT and pharmaceuticals, to renewable energy and even tourism – all of which are being prioritised, with a view to diversifying the Kingdom’s economy.

While the pace of change is encouraging, the challenges facing the Kingdom remain considerable: despite its market size and reforms, the GCC remains a fiercely competitive market for FDI attraction, from the UAE and its hub cities of Dubai and Abu Dhabi, to smaller states like Bahrain and even regionally-ostracised Qatar.

Market size is not a guarantor of dominance or even success when it comes to FDI attraction, and so SAGIA’s programme in the coming years, combined with improvements to the investment environment through enhanced intra-governmental coordination, will be crucial if Saudi Arabia is to achieve its ambition to attract FDI that will have a lasting, transformative impact on the country.

All built. King Abdullah Financial District is ready and waiting: now to attract a financial services cluster! Image source: argaam.com