Investors urged to gain from Najran’s potential

Total nonoil investment in Saudi Arabia’s private sector amounted to SR314 billion in 2012 with foreign direct investment (FDI) accounting for 20 percent or SR61.5 billion, according to latest statistics revealed at Najran Investment Forum, which was opened by Najran Gov. Prince Mishaal bin Abdullah on Saturday.
The three-day forum is attended by more than 600 delegates including ministers, businessmen and businesswomen and government officials. Former Malaysian Prime Minister Mahathir Mohammed gave a presentation on development of new regions in light of his country’s experience.
“Najran is a rich region with a lot of minerals such as zinc and copper, which must be exploited for its development,” said Mohammed, who was the longest serving prime minister in Malaysia with 22 years in office.
“Our first step was to open lands for those who do not have any job to promote agriculture and manage it in a professional manner. This contributed to fighting unemployment and poverty,” he said and emphasized the need to providing incentives to investors for 10 years and encouraging them to employ Saudis.
The former premier invited Najran students to visit Malaysia to learn from its experience. “Our country is ready to provide expertise required by Najran for its development,” he said, describing Najran as a treasure house.
In his opening address, Prince Mishaal announced plans to construct a road linking Najran and Jazan at a cost of SR3 billion. “We’ll provide all facilities to investors in Najran,” the governor said while highlighting the region’s investment attractions including infrastructure facilities.
Speakers included Commerce and Industry Minister Tawfiq Al-Rabiah, Housing Minister Shuwaish Al-Dowaihi and SAGIA Gov. Abdullatif Al-Othman.
The SAGIA governor highlighted the Kingdom’s positive economic indicators and said its private sector contributed 37.5 percent of the GDP in the second quarter of 2013, showing a growth rate of 6.6 percent compared to the same period last year.
Speaking about Najran’s economy, Al-Othman said the region has been achieving an average annual growth rate of 8.2 percent, which is higher than its annual population growth of 3.4 percent.
The building and construction sector contributes 16 percent of the region’s economy, trade 14 percent, real estate and financial sector 12 percent, industry seven percent, and agriculture and mining six percent each.
“Despite its massive economic growth, Najran represents only 1.2 percent of the national economy,” the SAGIA chief said, adding that new investment projects could drive the economy to greater heights.
Al-Othman said SAGIA was continuing its efforts to improve the Kingdom’s investment climate and attract more investments in different sectors.
Masoud Al-Haider, president of Najran Chamber of Commerce and Industry, welcomed the participants and noted the region’s investment opportunities.
Abdurrahim Naqi, secretary-general of the Federation of GCC Chambers, stressed the significance of the forum, saying it would help the region attract more investment.