Saudi Arabia FDI Plummets

Saudi Arabia is ramping up efforts to lure international companies and revive Crown Prince Mohammed bin Salman’s plans for an economic makeover, after foreign investment fell to a 14-year-low in 2017, Yahoo reported. The moves include plans to create two investment funds totaling over $18 billion for the government to enter into ventures with foreign companies, said people familiar with the matter. The kingdom is also pouring billions into entertainment-industry partnerships and working with SoftBank Group’s Vision Fund to bring technology firms to Saudi Arabia. The first modern Saudi bankruptcy law is due to soon come into effect. The government has also drawn up a law on public-private partnerships, the first step toward the sale of billions of dollars in state-owned assets that the government hopes will attract foreign investment in big infrastructure projects. The accelerating moves highlight worries in the kingdom about a chill spreading through business activities just as the 32-year-old crown prince is attempting a historic economic and cultural opening. He is trying to shift the economy away from oil and toward industries that provide growth and jobs for Saudis.