RIYADH: Saudi Arabia’s updated investment law and a slew of recent reforms could help the country achieve its goal of attracting foreign direct investments worth $24 billion this year, according to an analysis. 

In its latest report, Standard Chartered said that the Kingdom’s future economic growth will be driven by rising FDI inflow, as well as investments in public capital expenditure and the private sector. 

Aligned with its economic diversification efforts, Saudi Arabia aims to attract $100 billion in FDI by the end of this decade. 

Earlier this month, the Kingdom approved an updated investment law to elevate FDI into the nation. At that time, the Ministry of Investment said that the law would boost transparency and ease the process of investing in the Kingdom. 

The updated law also promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, while ensuring robust safeguards for intellectual property and facilitating smooth fund transfers. 

“We believe Saudi Arabia’s inward $24 billion FDI target in 2024 is likely to be attained, although this is some distance away from its $100 billion 2030 FDI target,” said Standard Chartered. 

The financial institution added: “FDI is likely to remain supported by the slew of reforms implemented since the 2014 oil price crash, the latest being the updated investment law, which effectively levels the legal playing field by broadening the scope of investors to include both domestic and foreign investors.” 

Amid media speculations regarding the scaling back of high-profile projects, Standard Chartered noted that Saudi Arabia’s ability to calibrate its investment decisions more finely bodes well for fiscal flexibility.

The report also added that the investment landscape in the Kingdom is expected to continue strong in the coming years. 

“Looking ahead, we think investment will remain in the driving seat, given slowing consumption, with households squeezed by rising house prices and a moderation in mortgage growth,” said Standard Chartered, adding: “Indeed, capex is budgeted at its highest level in six years at $50.4 billion, of which more than half was realized in the first half.” 

Speaking to CNBC earlier this month, Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak said that the Kingdom is keen to attract more FDI from countries in Europe and Asia, as the nation’s economic diversification efforts progress steadily. 

He added that the country’s financial sector is providing “huge opportunities” for investors due to its strong debt capital market and low debt to gross domestic product ratio.