At the World Economic Forum’s Annual Meeting in Davos, Switzerland, Saudi Arabia delivered a clear message to the global investment community: the Kingdom’s deliberately cultivated economic stability is a premier asset that is delivering tangible results for businesses and investors.
During a session titled “A Check-In on the Saudi Economy,” Faisal F. Alibrahim, Saudi Arabia’s Minister of Economy and Planning, detailed how the deep structural reforms under Saudi Vision 2030 are fundamentally reshaping the nation’s investment landscape and bolstering private-sector confidence. The discussion centered on how this long-term agenda has successfully diversified the economy, attracted foreign capital, and created a predictable and reliable operating environment.
Building Stability as a Discipline
Minister Alibrahim emphasized that the stability attracting investors is not a short-term policy outcome but a core discipline built over time through consistent action.
“Stability is not something you can buy; you have to build it,” he stated, adding that it must accumulate gradually to become the kind of foundation that genuinely supports long-term prosperity.
Tangible Results in Foreign Investment
This strategic approach, Alibrahim argued, is yielding significant returns. While global foreign direct investment (FDI) saw a decline of 11% in the last year, FDI flowing into Saudi Arabia surged by 24%. He attributed this stark divergence to the Kingdom’s unwavering policy execution and regulatory clarity, which provides a safe harbor in a volatile global economy.
“Saudi Arabia treats stability as a discipline—whether in policy, regulation, or implementation,” he said. “It also shapes the quality of the investments coming into the Kingdom.”
The Competitive Edge of Trust and Predictability
Alibrahim also highlighted trust as a defining economic asset, noting that policy predictability allows markets to function with greater efficiency. By ensuring that commitments are honored, the Kingdom is establishing a competitive advantage.
“One of the rarest things is that a commitment made today will be honored tomorrow,” he remarked, positioning stability as crucial for businesses looking to make long-term decisions.
Beyond Paper Reforms
While the reforms under Vision 2030 enable businesses to plan further ahead, Alibrahim cautioned that policy intent alone is insufficient to drive real change.
“Reform on paper is not sufficient,” he said. “It needs to be paired with a streamlined regulatory framework that enables businesses to think long-term and navigate uncertainty with greater confidence.”
About Saudi Vision 2030
Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. Launched in 2016, it is built around three primary themes: a vibrant society, a thriving economy, and an ambitious nation.
Source: Fast Company Middle East
