Arab News, Tuesday, Mar 07, 2023 | Sha'ban 15, 1444
Saudi Vision 2030 tops investor attention in the region: EFG Hermes
Saudi Arabia:
Saudi Arabia’s push to diversify its economy under
Vision 2030 is increasing its attractiveness in the region for
investments, revealed a recent poll conducted by Egyptian financial
services firm EFG Hermes.
The survey, which was conducted on
the sidelines of the 17th EFG Hermes One-on-One Conference in Dubai, showed 34
percent of respondents termed the Kingdom’s Vision 2030 as the most important
source of investment opportunities at the moment.
This was followed by investment opportunities in
artificial intelligence at 25 percent.
The remaining respondents voted for Chinese
investments and the opportunities created by the economic reforms that are
currently taking place in Egypt.
Some 73 percent of the respondents in the survey
predicted that the average price of oil in 2023 will be $80 a barrel, compared
to 23 percent who estimated it to be $100.
For the next five years, the healthcare sector
topped the priority list among investors in the region, followed by information
technology, renewable energy, and food industries.
Touted to be the biggest economy in the Middle
East and North Africa region, Saudi Arabia has shown tremendous economic growth
after the launch of Vision 2030.
In 2022, Saudi Arabia recorded a
larger-than-expected budget surplus of SR102 billion ($27.13 billion) — SR12
billion higher than previously forecast.
The Kingdom’s non-oil economy is also showing
positive growth, as Saudi Arabia’s Purchasing Managers’ Index accelerated to an
eight-year high of 59.8 in February 2022.
The Riyad Bank Saudi Arabia PMI report, formerly
the S&P Global Saudi Arabia PMI, added that business owners are optimistic about
Saudi Arabia’s future economy.
“Businesses displayed a robust degree of
confidence toward future activity as the current improved market conditions are
promising, coupled with the positive expectations toward the pickup in the
emerging economies,” said Naif Al-Ghaith, chief economist at Riyad Bank.