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Saudi Arabia frames stability as an investment asset at Davos

As global foreign direct investment fell 11% in 2024, Saudi Arabia recorded a 24% rise in inflows—highlighting the impact of policy stability and regulatory clarity.

Saudi Arabia frames stability as an investment asset at Davos
[Source photo: Krishna Prasad/Fast Company Middle East]

At the World Economic Forum Annual Meeting in Davos, Switzerland, Saudi Arabia used the global stage to underline a central message: economic stability is built deliberately, and it delivers results.

Speaking during a session titled A Check-In on the Saudi Economy, Faisal F. Alibrahim, Saudi Arabia’s Minister of Economy and Planning, outlined how deep structural reforms under Saudi Vision 2030 are reshaping the Kingdom’s investment environment and strengthening private-sector confidence.

The discussion focused on how Saudi Arabia’s long-term reform agenda has helped diversify the economy, attract global capital, and create a more predictable operating environment for businesses. Alibrahim emphasized that stability is not a short-term policy outcome, but a discipline built over time.

“Stability is not something you can buy; you have to build it,” he said, adding that it must accumulate gradually to become the kind of stability that genuinely supports prosperity.

That approach, he argued, is delivering tangible results. While global foreign direct investment fell by 11% in 2024, FDI into Saudi Arabia rose by 24%. Alibrahim attributed this divergence to the Kingdom’s consistent policy execution and regulatory clarity.

“Saudi Arabia treats stability as a discipline—whether in policy, regulation, or implementation,” he said. “It also shapes the quality of the investments coming into the Kingdom.”

Alibrahim also highlighted trust as a defining economic asset, noting that policy predictability enables markets to function more efficiently. “One of the rarest things is that a commitment made today will be honored tomorrow,” he said, describing stability as a competitive edge in an increasingly uncertain global economy.

By enabling businesses to plan further ahead, reforms under Vision 2030 are supporting longer-term private-sector decision-making. But policy intent alone is not enough, Alibrahim cautioned.

“Reform on paper is not sufficient,” he said. “It needs to be paired with a streamlined regulatory framework that enables businesses to think long-term and navigate uncertainty with greater confidence.”

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