Saudi Arabia has established the Saudi Investment Promotion Authority (Sipa) to boost economic growth in line with its National Investment Strategy (NIS).

According to the kingdom’s Minister of Investment Khalid al-Falih, the establishment of Sipa will enable “an integrated approach to investment between government agencies while enhancing all activities and services related to investment promotion to support partnerships between local and foreign investors”.

In October, Crown Prince Mohammed bin Salman revealed the SR27tn ($6.7tn) NIS to help achieve the goals of Saudi Arabia's Vision 2030 programme.

NIS is expected to include the injection of SR12tn into the local economy until 2030. This entails SR5tn through the Shareek initiative; SR3tn from sovereign wealth vehicle Public Investment Fund; and SR4tn through investments by local and international companies facilitated by NIS.

Another SR10tn in investments is expected by the government through its annual budgets for the next 10 years, and SR5tn is anticipated from private consumption spending during the decade.

Achieving these targets should raise Saudi Arabia’s investment-to-GDP ratio from 22 per cent in 2019 to 30 per cent in 2030 and add the kingdom to the list of the world’s 15 largest economies, state news agency Spa announced on 11 October.

NIS will target sectors including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure and healthcare. It is expected to raise annual foreign direct investment (FDI) inflows and domestic investment to SR388bn and SR1.7tn, respectively, by 2030.

The programme is anticipated to raise the private sector’s and FDI contribution to GDP to 65 per cent and 5.7 per cent, respectively. The contribution of non-oil exports to GDP is expected to reach 50 per cent from 16 per cent, and the unemployment rate to drop to 7 per cent.