foreign investments Archives

Foreign investments in Saudi Arabia jump by 9% in 1st quarter of 2016

by admin | May 25, 2021 | Investing, Muslim World, News

Riyadh (IINA) : Foreign investments in the Kingdom recorded a rise of 9 percent, equivalent to SR94.32 billion ($25.1 billion) by the end of the first quarter of this year compared with the same period last year, Arab News reported.

The total value amounted to SR1.135 trillion ($302 billion), by the end of the first quarter of this year, compared to SR1.041 ($277.5 billion) trillion by the end of the first quarter of last year.

According to an analysis in Al-Eqtisadiah newspaper, the methods of distribution of foreign investments have changed from previous trends, where before the majority of foreign investments in the country used to go as direct investments in the Saudi economy. However, during the first quarter of this year, the proportion of portfolio investments have risen out of the total proportion of foreign investment at the expense of direct investments in the economy.

The value of direct investment in the Saudi economy used to account up to 78.5 percent of the total foreign investments by the end of the first quarter of last year, but fell by about four percentage points, reaching 74.6 percent by the end of the first quarter of this year. In contrast, the high proportion of portfolio investments rose from 6.3 percent at the end of the first quarter of last year to 9.6 percent at the end of the first quarter this year.

The proportion of other investments rose slightly from 15.2 percent in the first quarter of last year to 15.7 percent by the end of the first quarter of this year. Foreign investments are divided into three categories, the bulk accounting for direct investment within the economy, portfolio investments, and other investments.

The value of the foreign direct investment in the Saudi economy recorded a growth of 4 percent, equivalent to SR 0.23 billion, from the SR817.01 billion by the end of the first quarter of last year to SR847.25 billion by the end of the first quarter of this year. Portfolio investments have recorded a growth of 66 percent equivalent to about SR43.36 billion, compared to SR65.83 billion at the end of the first quarter of last year, and SR109.19 billion by the end of the first quarter of this year.

Portfolio investments also recorded a growth of 72 percent, equivalent to SR45.76 billion by the end of the first quarter of this year, compared to its value at the end of last year, which was then worth approximately SR63.43 billion. Equity rights and investment fund shares rose by 66 percent, about SR38.03 billion from SR57.74 billion by the end of the first quarter of last year to SR 95.78 billion by the end of the first quarter of last year.

Other investments rose by 13 percent, equivalent to SR20.73 billion, from SR157.84 billion by the end of the first quarter of last year, to SR178.57 billion by the end of the first quarter of this year. The proportion of other investments, which include three sections — currency and deposits, loans and other accounts payable — have increased out of the total foreign investments from the 15.2 percent by the end of the first quarter of last year to 15.7 percent by the end of the first quarter of this year.

Iran safe for foreign investments

by admin | May 25, 2021 | Muslim World

Tehran, (IANS) Foreign Minister Javad Zarif said Iran was the most secure and lucrative market for investments, an official said on Sunday.

“The enemies such as the Zionists and the Saudi Arabia are making attempts to tell banks that Iran is not secure for investment, but we must show the realities to the world,” Xinhua news agency quoted Zarif as saying.

Iran’s financial resources abroad, which had been blocked under Western sanctions, have been made accessible and foreign banks are resuming their relations with Iranian banks, he said.

“The reason that certain unjust US sanctions against Iran are still in place is our anti-hegemonic policies,” Zarif said, adding that for the same reason the US opposition and pressures against Tehran will not end.

Since January when the Joint Comprehensive Plan of Action (JCPOA) was implemented, the international companies have been involved in several rounds of dialogue for cooperation with Iran in diverse areas.

While Iran has announced that it welcomes international investments, particularly in its energy industry, companies drag their feet to invest in the country since they fear that they may face obstacles due to the sour relations between Iran and the US as well as complications involved in the money transfer to and out of the country.

The US has still its sanction on Iran over the alleged violations of human rights and supports of terrorism, which Iran denies.

Washington has recently blacklisted some Iranian and foreign entities for being involved in the country’s missile programme. Besides, US financial institutions are barred from dollar transactions involving Iran.

These continued restrictions have raised concerns among the international companies that they could fall victim of the US law if they invest in Iran.