ShareJEDDAH: Over recent years, many Kuwaiti companies have markedly proved their presence in the Saudi market by means of running investments in various sectors, contributing to the Saudi economic growth, diversification and prosperity. Kuwaiti companies are generally active in such sectors as construction, transportation, logistics, food, technology and retail, thus enabling them to play a distinguished and pioneering role in the investment and economic development domain.
This development, in fact, is the outgrowth of recently adopted development and investment policies and measures in the Kingdom of Saudi Arabia aiming at creating an effective and attractive economic atmosphere. In this context, the decision made by the Kuwait Investment Authority (KIA) in June to open a representative office in the kingdom with a view to propping up economic and investment relations between both countries, showed the kingdom’s economic development.
Speaking to KUNA, several Kuwaiti investors said that clear-cut insights and facilities offered to entrepreneurs and investors have greatly contributed to drawing investments to the Saudi market. Abyat Company’s CEO Mohammad Abul said the Saudi market has attracted investors from everywhere, particularly Kuwait due to geographical proximity and close ties and firm bonds between Kuwait and Saudi Arabia. Speaking highly of the Saudi economy as being the largest Gulf one, Abul said the kingdom’s 2030 Vision has brought favorable benefits to the economy, chiefly a congenial legislative atmosphere, streamlined facilities, and investment incentives.
He underlined that Kuwaiti investors, including major companies and funds, are willing to enter the Saudi market in pursuit of investment openings in industrial, commercial, and service sectors. The fact that Riyadh is set to play host to world events like Riyadh Expo 2030 and World Cup 2034, together with several international exhibitions and conferences, reflects the kingdom’s vibrant economy, he said.
Abul pointed out that Abyat, which has been present in the Saudi market since 2012 with investments exceeding KD 50 million (about $160 million), intends to inject fresh investments in various domains in the Saudi market. Aldhahiya Juice’s Board Chairman Abdullah Al-Mefarrej said Kuwaiti investors have been interested in investment in Saudi Arabia since it launched an unequivocal, earnest and holistic vision in 2015 aiming at encouraging and roping in Gulf and foreign investments. He said that his company had thus decided to enter the Saudi market in 2017 following field visits to the capital, Riyadh to assess the restaurant and food market. Since 2018, the kingdom has been drawing big investments from small and medium-sized firms of all sectors, leading to growing competition at the Saudi market, Abul remarked.
Ghaliah Company’s General Manager Abdularazaq Al-Mutawa commended the Saudi market as being promising and attractive at both Gulf and international levels. He regarded the kingdom’s economic growth and development as part of Gulf economic growth in general thanks to government interest in promoting the business environment and diversifying income sources. The recent wide-scale reforms and steps taken by the Saudi leadership have placed the kingdom on the list of major countries that are able to draw foreign capital and investments, Al-Mutawa added.
The presence of Kuwaiti investors and businessmen in the Saudi market undoubtedly reflects the strong relationship between both countries’ governments and peoples, along with continued partnership between both sides’ private sectors, he remarked. Kuwaiti investments in the kingdom are now estimated at 35 billion Saudi riyals (around $9.3 billion) and cover various investment sectors, Al-Mutawa said, citing official figures announced during the forum “Invest in Saudi Arabia” held in Kuwait last year.
He lauded the Kuwait-Saudi railway project as one of the most significant projects in the Gulf transportation sector as serving all sectors and markets and cutting transportation charges. — KUNA
