RIYADH: As it is now more open to foreign capital, Saudi Arabia has invited Indonesia to invest in the Persian Gulf economy and benefit from its many untapped business opportunities. The world’s major oil producing nation has struggled to spur economic growth after the 2014 oil price cash left the country with high budget deficits. Saudi Arabia is moving away from its heavy dependence on the oil sector and diversifying its revenues from other sectors, said General Authority for Small and Medium Enterprises Ghassan Ahmed Al Sulaiman. “This transformation won’t happen unless our private sector cooperates with the international business community, including businesses here,” he said during an Indonesia-Saudi Arabia Business Forum recently.
Saudi Arabia has launched a master plan called “Vision 2030” that aims to increase the proportion of foreign direct investment to 5.7 of gross domestic product (GDP) by 2020, from 3.8 percent at present. In line with this ambition, the contribution of the private sector is expected to rise from 40 percent of GDP to 65 percent, while the share of non-oil exports is set to climb from 16 percent to 50 percent. Saudi Arabia could serve as a trade hub to nearby countries in Asia, Africa and Europe, according to Saudi Arabian General Investment Authority.
