Saudi Minister of Investment Khalid al-Falih defended the country’s economic diversification plan against doubts, highlighting “green shoring” investment opportunities to attract foreign financing. Al-Falih expressed confidence in Vision 2030 during an interview with CNBC’s Steve Sedgwick at the Ambrosetti Forum in Cernobbio, Italy, emphasizing the broad and comprehensive nature of the plan.
Saudi Arabia, a major economy in the Middle East and a crucial U.S. ally, has intensified investments to realize Crown Prince Mohammed bin Salman’s Vision 2030 program, which includes projects like the Neom industrial complex. The initiative aims to reduce reliance on oil revenues, with plans to boost domestic financial flows to over $3 trillion and attract $100 billion in foreign investment annually by 2030.
Al-Falih stated that after eight years of implementing Vision 2030, Saudi Arabia is more committed to the program, having achieved or nearing completion of 87% of its targets. Despite critics questioning the plan’s feasibility, the kingdom has undertaken market liberalization and business environment improvements, though some requirements like setting up regional headquarters have faced resistance.
While foreign investment licenses in Saudi Arabia nearly doubled in 2023, concerns persist regarding legal uncertainties and dispute resolution for foreign investors. Al-Falih assured that the kingdom offers predictability and stability, emphasizing the concept of “green shoring” to attract investors by leveraging renewable energy resources for high-value manufacturing.
Saudi Arabia aims to achieve net-zero emissions by 2060 under Vision 2030, aligning with global climate goals. The country, alongside the UAE, has participated in climate summits but faces scrutiny over its commitment to decarbonization. Riyadh advocates for a balanced approach using hydrocarbons and green resources to prevent energy shortages during the transition to net-zero emissions.
Critics have raised concerns about Saudi Arabia’s emphasis on carbon capture and storage technologies as a strategy to maintain its oil business. Through “green shoring,” the country seeks to enhance global supply chain resilience and support the transition to a more electric global economy by addressing critical material shortages and promoting green technologies.
