Saudi new regional firms to harness investments in region — economists

AMMAN — Jordanian economists and experts on Wednesday hailed Saudi Arabia's Public Investment Fund's launch of investment regional companies in five countries across the MENA region, including Jordan.

Hosam Ayesh, a Jordanian economic analyst, noted that regional cooperation at this level will prove mutually beneficial to all parties by attracting greater investments and accelerating economic growth.  

“It will lead to harnessing the economic potential of these countries, creating job opportunities and enhancing their interrelations across various sectors,” he told The Jordan Times. 

Ayesh added that a regional investment will help lower commercial barriers between these Arab countries, which could result in “the growth of a regional market that offers globally competitive products”.

Moreover, he noted that this type of investments entails special customs relations among involved countries to ensure that they all benefit from the fruits of this cooperation.

In the long term, it might also result in visa facilitation agreements to better exchange expertise through exporting and importing manpower, he continued. 

He also pointed out the importance of investments which meet the “individual needs” of each country.

“Jordan is a labour-abundant country, so it’s important to invest in projects capable of employing the full potential of its human resources,” Ayesh said. 

He added that strategic investments in food security and agriculture, as well as water and energy, are essential in building a resilient economy. 

This type of cooperation can also enhance the potential of Jordan’s tourism sector as an essential source of employment opportunities and revenue for the Kingdom, he added. 

Wajdi Makhamreh, another economist, noted that this cooperation will contribute to achieving the goals of the 10-year Economic Modernisation Vision, which was launched by His Majesty King Abdullah in June. 

“It will definitely benefit the Kingdom by investing in its various promising sectors and reducing its elevated levels of unemployment,” he told The Jordan Times. 

It can also lead to the formation of a political and economic union, which is important amid current economic challenges that were exacerbated by the outbreak of the COVID-19 pandemic, added Makhamreh. 

Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al Saud on Wednesday announced that Saudi Arabia’s Public Investment Fund will launch 5 regional companies aimed at investment firms in five countries across the MENA region, including Jordan. 

The announcement came during the sixth edition of the Future Investment Initiative held in Riyadh. 

The funds will go towards $24 billion in investments in Jordan, Bahrain, Iraq, Oman and Sudan, the official Saudi Press Agency reported.