Riyadh, Saudi Arabia (10 September 2008): Saudi Arabia has placed 16th in the World Bank's global business competitiveness report, Amr Al-Dabbagh, governor of Saudi Arabian General Investment Authority (SAGIA), announced late last night.
The International Finance Corporation (IFC), an affiliate of the World Bank, gave the ranking after reviewing business environment in 181 countries around the world. Last year the Kingdom had placed 23rd.
The SAGIA chief attributed the Kingdom's higher ranking to the economic reforms introduced by Custodian of the Two Holy Mosques King Abdullah and the government's efforts to remove obstacles facing Saudi and foreign investors.
"Ever since SAGIA announced its plan to make Saudi Arabia one of the top 10 most competitive economies in the world by 2010, there has been considerable improvement in its competitiveness," Al-Dabbagh said.
"The improvement in the performance of government departments and agencies has contributed to this achievement," he added.
Competitiveness, as measured by over 300 global indicators, is the most comprehensive assessment of a country's economic strength.
"Through its 10x10 initiative, Saudi Arabia will emerge as one of the world's most attractive business destinations," Al-Dabbagh said.
"This initiative is our guarantee, to each business and citizen of Saudi Arabia, to continuously provide marked improvements in levels of prosperity and standards of living throughout the nation," he added.
"We tirelessly chart our progress toward 10x10 using three of the top international benchmarks of competitiveness -- the World Economic Forum's Global Competitiveness Index, the Institute for Management Development's World Competitiveness Rankings and IFC's Ease of Doing Business Index," the SAGIA chief said.
investors in Saudi Arabia. We welcome all companies to take part in our growth, to take advantage of the wide range of investment opportunities in the Kingdom,” said. H.E. Amr Al-Dabbagh, Governor of the Saudi Arabian General Investment Authority (SAGIA) and Chairman of the National Competitiveness Center (NCC).
Saudi Arabia has demonstrated notable improvements in the rankings over the last 4 years, leaping from the 67th position in 2004, to 38th in 2006 and to its current position in the top 20. The Kingdom’s exceptional performance has been driven by King Abdullah’s vision to increase the prosperity of the people of Saudi Arabia. The King has been the country’s strongest advocate for modernizing the Saudi business environment. He has sought to encourage domestic and foreign investment in the country by enacting a new foreign investment law, establishing the Saudi Arabian General Investment Authority (SAGIA), privatizing public companies, and achieving membership in the WTO.
The Governor of SAGIA has since institutionalized efforts to liberalize the country’s economy with the creation of the NCC and the “10 x 10” initiative. “Under His Majesty the King’s leadership, Saudi Arabia has acknowledged the importance of competitiveness and has set a goal for the Kingdom to become one of the top 10 most competitive countries in the world by 2010,” explained H.E. Amr Al-Dabbagh.
“We monitor diligently our progress towards ‘10 x 10’ using the World Bank’s Ease of Doing Business Index along with the World Economic Forum’s Global Competitiveness Index and the Institute for Management Development’s World Competitiveness Rankings.”, said Dr. Awwad Al-Awwad, Deputy Governor for Investment Affairs, Saudi Arabian General Investment Authority (SAGIA) and President of the National Competitiveness Center (NCC).
“These rankings are a vital reference for governments, international development agencies, non-governmental organizations and the private sector to assess national economic conditions; between the three of them we cover over 300 parameters against which our 10 x 10 plan is assessed. Competitiveness is the most comprehensive assessment of a country’s economic strength and ability to yield high returns on investment,” Dr. Awwad Al-Awwad concluded.
The parameter-based reform agenda is having its desired effect. Saudi Arabia has become one of the top recipients of foreign direct investment in the Middle East. Inflows have increased from $2 billion USD to more than $20 billion USD in the last three years. Today, more than 50% of these funds go to non-oil sectors of the economy, collaborating towards economic diversification of the Kingdom.
In order to foster competitiveness in all regions of the Kingdom, SAGIA has already launched four Economic Cities: in Rabigh (King Abdullah Economic City), Hail (Prince AbdulAziz bin Mousaed Economic City), Madinah (Knowledge Economic City) and Jazan (Jazan Economic City). Under the Foreign Investment Act, 100 per cent ownership is granted to foreign investors at its Economic Cities.
Such great achievements have bolstered the government’s resolve to continue the business environment reforms that will make Saudi Arabia one of the 10 most competitive nations of the world. SAGIA and the NCC will play a central role in supporting continued efforts to enhance the Kingdom’s fundamental competitiveness.