Ministry of Investment (Saudi Arabia)
The Ministry of Investment (MISA) (Arabic: وزارة الاستثمار), (previously the Saudi Arabian General Investment Authority SAGIA Arabic: الهيئة العامة للإستثمار), is a Saudi Arabian government ministry that oversees foreign investment in the country by issuing licenses to foreign investors.
| وزارة الاستثمار | |
 | |
 Khalid al-Falih, current Minister of Investment since 2020 | |
| Agency overview | |
|---|---|
| Formed | April 10, 2000 as the General Investment Authority |
| Preceding agency |
|
| Jurisdiction | Government of Saudi Arabia |
| Headquarters | Riyadh, Saudi Arabia |
| Agency executive |
|
| Website | misa |
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
editHistorically, 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
editReferences
edit- ^ a b "Saudi Royal Decree Forms 3 New Ministries, Merges 2 Others". Asharq AL-awsat. Retrieved 2020-02-25.
- ^ a b c d e Stephen Kalin, Saudi ex-energy minister bounces back as investment chief, Reuters (February 25, 2020).
- ^ Allam, Abeer (30 March 2014). "Saudi red tape frustrates foreign investment". Financial Times. Retrieved 3 December 2016.
- ^ a b c "Who's Who: The House of Saud: Prince Abdullah bin Faisal bin Turki Al-Saud". Wide Angle. PBS. October 7, 2004.
- ^ 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.
- ^ a b c Reuters, Former investment chief is new Saudi ambassador to Washington, Reuters (October 21, 2015).
- ^ a b c "Factbox: Major Saudi Arabian non-oil deals since 2016". Reuters. October 29, 2021.
- ^ "Saudi Arabian General Investment Authority launches TAYSEER to stimulate investing climate". Arab News. 2017-11-12.
- ^ Reuters, Saudi Arabia signs $15 bln in agreements at annual investment forum - statement, Reuters (October 29, 2019).
- ^ Rashid Hassan (July 29, 2016). "SAGIA grants Pfizer 100% ownership of KSA business".
- ^ Kane, Frank (9 August 2017). "Saudi Arabia to allow 100% foreign ownership of engineering firms". Arab News.
