Foreign investments jump to SR1.13tr in first quarter of 2016

Foreign investments in the Kingdom recorded a rise of 9 percent, equivalent to SR94.32 billion by the end of the first quarter of this year compared with the same period last year.
The total value amounted, by the end of the first quarter of this year, to SR1.135 trillion, compared to SR1.041 trillion by the end of the first quarter of last year.
Foreign investments also recorded growth of about 5 percent, equivalent to SR49.57 billion by the end of the first quarter of this year, compared to its value of SR1.085 trillion at the end 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, compared with the high proportion of portfolio investments, from 6.3 percent by the end of the first quarter of last year to 9.6 percent by 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.

Source ; Arab News