Jump to content

Ministry of Investment (Saudi Arabia)

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Cergun62 (talk | contribs) at 15:29, 5 January 2024 (→See also: Changed to new title). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Ministry of Investment
وزارة الاستثمار
File:Ministry of Investment Logo.svg

Khalid al-Falih, current Minister of Investment since 2020
Agency overview
FormedApril 10, 2000; 24 years ago (2000-04-10) as the General Investment Authority
Preceding agency
  • General Investment Authority (2000 – 2020)
JurisdictionGovernment of Saudi Arabia
HeadquartersRiyadh, Saudi Arabia
Agency executive
Websitemisa.gov.sa/en/

The Ministry of Investment (MISA) (Arabic: وزارة الاستثمار), till 2020 as the Saudi Arabian General Investment Authority (SAGIA) (Arabic: الهيئة العامة للإستثمار), is a government ministry in Saudi Arabia that oversees foreign investment in the country besides issuing licenses to foreign investors. It was established as the General Investment Authority in 2000 during the reign of King Fahd and was transformed into a ministry in 2020 through a royal decree issued by King Salman.[1] Khalid al-Falih, the former chairman of Saudi Aramco was appointed as the new minister by replacing governor Ibrahim al-Omar following the ministry's renaming.[1]

History and governance

Historically, SAGIA held responsibility for issuing foreign investment licenses to non-Saudi companies that wished to operate in the Kingdom,[2][3] and lacked a broader role in Saudi economic regulation.[2] Prince Abdullah ibn Faisal ibn Turki al Abdullah Alsaud, a member of a side branch of the ruling House of Saud, was Chairman of SAGIA from 2000 until his resignation in March 2004.[4][5][6] He promoted more openness to foreign investment in Saudi Arabia, as well as a period of trade liberalization and privatization,[4][5][6] and his tenure coincided with Saudi Arabia's accession to the World Trade Organization.[6] However, Prince Abdullah faced resistance from more conservative factions within the Saudi government who opposed economic reforms, as well as the Saudi bureaucracy.[4][5]

The SAGIA played a key role in Saudi Arabia's Vision 2030 initiative, which focused on economic liberalization, foreign direct investment, and economic development.[7] In 2017, SAGIA launched Tayseer program, aimed at improving the investment climate for private companies.[8] SAGIA has signed a number of major non-oil investment agreements.[7] At its third annual Future Investment Initiative (FII) conference, which took place in October 2019, SAGIA signed 23 agreements collectively $15 billion.[9] These included a $700 million investment deal with Modular Middle East; a $300 million investment deal with ForDeal, a $200 million deal with Shiloh Minerals, a $120 million investment deal with BRF Brazil Food, a $110 million investment deal with KME, and a $50 million deal with Xylem Inc.[7] In October 2011, Pfizer signed an agreement with SAGIA to set up its first manufacturing plant in King Abdullah Economic City; in 2016, SAGIA gave Pfizer 100% foreign ownership of its legal entity in Saudi Arabia.[10] In August 2017, SAGIA allowing 100% foreign ownership in the engineering business for the first time; the rules remained restrictive, such that only established multinationals were eligible.[11]

In 2020, a royal order was issued, replacing SAGIA with a new Ministry of Investment under Khalid al-Falih, the former chairman of Saudi Aramco.[2] The creation of the Investment Ministry was part of a broader Saudi government reshuffle by Crown Prince Mohammed bin Salman (MBS), the de facto ruler of the kingdom. MBS has aggressively moved to diversify the Saudi economy away from petroleum.[2] It was unclear whether the new Investment Ministry would be more powerful than SAGIA.[2]

See also

References

  1. ^ a b "Saudi Royal Decree Forms 3 New Ministries, Merges 2 Others". Asharq AL-awsat. Retrieved 2020-02-25.
  2. ^ a b c d e Stephen Kalin, Saudi ex-energy minister bounces back as investment chief, Reuters (February 25, 2020).
  3. ^ Allam, Abeer (30 March 2014). "Saudi red tape frustrates foreign investment". Financial Times. Retrieved 3 December 2016.
  4. ^ a b c "Who's Who: The House of Saud: Prince Abdullah bin Faisal bin Turki Al-Saud". Wide Angle. PBS. October 7, 2004.
  5. ^ a b c Eric Pfanner (June 24, 2003). "Saudis see foreign investment as one tool to polish image: A closed kingdom opens a little". New York Times. International Herald Tribune.
  6. ^ a b c Reuters, Former investment chief is new Saudi ambassador to Washington, Reuters (October 21, 2015).
  7. ^ a b c "Factbox: Major Saudi Arabian non-oil deals since 2016". Reuters. October 29, 2021.
  8. ^ "Saudi Arabian General Investment Authority launches TAYSEER to stimulate investing climate". Arab News. 2017-11-12.
  9. ^ Reuters, Saudi Arabia signs $15 bln in agreements at annual investment forum - statement, Reuters (October 29, 2019).
  10. ^ Rashid Hassan (July 29, 2016). "SAGIA grants Pfizer 100% ownership of KSA business".
  11. ^ Kane, Frank (9 August 2017). "Saudi Arabia to allow 100% foreign ownership of engineering firms". Arab News.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Ministry_of_Investment_(Saudi_Arabia)&oldid=1193772705"