Al-Falih: Strategic reforms, location boost Saudi Arabia’s global competitiveness

Minister of Investment Khalid Al-Falih said Saudi Arabia’s strategic location, ambitious economic reforms, and abundant natural resources are strengthening the Kingdom’s global competitiveness and making it a key player in the reorganisation of global supply chains.

Speaking at the 21st session of the UNIDO General Conference (GC21) in Riyadh, held under the theme “Global Industry Summit 2025”, Al-Falih highlighted how global industrial production is shifting from a few dominant centres to regionally connected clusters, presenting new opportunities for Saudi Arabia to attract investment and expand its industrial role.

He noted that the Middle East holds nearly half of the world’s proven oil reserves, 40 per cent of gas reserves, and significant deposits of critical minerals including cobalt, manganese, and graphite, positioning the region for greater industrial and technological diversification.

Al-Falih said Saudi Vision 2030 continues to drive transformation through innovation, private-sector growth, and youth empowerment, with two-thirds of the population under 35 and digitally connected. He cited strategic investments in advanced manufacturing, petrochemicals, and mining, with mineral reserves estimated at US$2.5 trillion, supported by a low-emission energy mix.

The minister also pointed to Saudi Arabia’s growing role in clean energy and artificial intelligence, targeting leadership in AI by 2030 with the digital economy expected to contribute 19 per cent of GDP.

He reported that venture capital investment has surged 158 per cent to US$1.3 billion in the third quarter, while more than 2,500 foreign entrepreneurs have registered to operate in the Kingdom.

Al-Falih highlighted the expansion of tourism, hospitality, and culture through major projects such as AlUla, Diriyah, and Red Sea Global, along with the regional headquarters program that encourages global firms to base operations in the Kingdom.

He said GDP has doubled since Vision 2030’s launch, with non-oil sectors contributing 56 per cent of total output, while foreign direct investment inflows and stock have quadrupled. Saudi Arabia’s sovereign wealth capital now exceeds US$1.5 trillion, reflecting financial strength and investor confidence.

Al-Falih concluded by emphasising that “the best way to build the future is through bold, responsible, and collaborative investment,” reaffirming Saudi Arabia’s commitment to international partnerships and sustainable economic development.