Where Does Saudi Arabia Invest Its Money

Synopsis

The kingdom has set itself high targets for diversifying its economic system and reducing its dependence on oil, pouring hundreds of billions of dollars into a program chosen Vision 2030 initiated by de facto ruler Crown Prince Mohammed bin Salman.

The minister did not say which joint ventures had been cancelled, just he said he wanted the process of localisation in the defence sector to move quicker.

Kingdom of saudi arabia attracted 81 billion riyal ($21.6 billion) of investments in the industrial sector in 2021 for both the private sector and articulation ventures with government entities, the Saudi industry minister said on Monday.

The kingdom has gear up itself high targets for diversifying its economy and reducing its dependence on oil, pouring hundreds of billions of dollars into a programme chosen Vision 2030 initiated by de facto ruler Crown Prince Mohammed bin Salman.

The prince's plan is centred on developing a homegrown industry, but at that place have been snags and delays as the kingdom has struggled with a lack of skilled labour, bureaucratic hitches and challenges related to costs and engineering transfers.

"This industrial sector in full general is really growing. I mean, nosotros have seen 2021... We achieved more than than 81 billion riyal of new investments coming during the year," Bandar Al-Khorayef, Saudi arabia'south Mining and Manufacture Minister said.

Al-Khorayef spoke to Reuters on the sidelines of the kingdom's inaugural arms off-white, the World Defense force Testify, as the country hopes to move from being a mostly a weapons importer to a sophisticated manufacturer and exporter.

A serial of joint ventures between Saudi firms and top global aerospace and defence manufacturers accept been announced in recent years equally part of that strategy to localise some industrial capabilities. The minister said many of those partnerships are still being discussed while some were cancelled after review.

"Some just probably didn't make sense and we have to be realistic," he said.

"Getting into a articulation venture is a big deal, so having a partner specifically of any business takes time ... You need to ensure that y'all cull the correct partner because it's going to be for a long period of fourth dimension," he added.

The minister did not say which joint ventures had been cancelled, but he said he wanted the process of localisation in the defense force sector to move quicker.

"Definitely, I am not satisfied. You know, we are having high ambitions simply manufacturing capabilities do take fourth dimension," Al-Khorayef said.

Riyadh plans to invest 12 trillion riyal by 2030 to help refocus the economy abroad from oil, while giving foreign firms until the end of 2023 to ready upwards headquarters or risk losing out on regime contracts as it competes with regional heavyweights, especially the UAE, for foreign capital letter and talent.

Saudi authorities say much of the plan is all the same in its initial phase and money will increasingly start pouring into the kingdom over the next few years.

The minister said the kingdom is gear up to work with Western companies or others, regardless of their origins, equally long equally they "share a long-term view" and "accept the right technology needed in the kingdom".

Al-Khorayef said he was not able to comment on the government'south position on doing business with Russian companies as the Westward imposes sanctions on Moscow over its invasion of Ukraine.