Saudi Arabia has received warm praise about its improved rankings on a number of global lists from the US State Department. In its recently published annual Investment Climate Statements on more than 170 countries, the US State Department highlighted the achievements made by Saudi Arabia.
“In recognition of the progress made in its investment and business climate, Saudi Arabia’s rankings on several world indexes improved between 2019 and 2021,” the State Department said.
The country-specific Investment Climate Statements, which are prepared by economic experts in US embassies and other posts around the world, provide an analysis of economies that are or could be lucrative markets for US businesses of all sizes.
The list of indexes on which the State Department noted the Kingdom has made progress in recent years includes the World Competitiveness Yearbook, an annual report published by the International Institute for Management Development in Switzerland. The Investment Climate Statements credited Saudi Arabia with achieving the biggest improvement of any country, after it moved up 13 places on this index in 2019 and two more in 2020 as a result of “improvements to government and business efficiency.”
The State Department also highlighted the Kingdom’s improved ranking on World Bank’s Doing Business 2020 report, describing Saudi Arabia as “the world’s top reformer and improver.”
However, it also raised concerns that efforts to provide more jobs for Saudis and diversify the economy to reduce the reliance oil have prompted the government to take steps that might weaken the investment climate going forward. There were also concerns about the fiscal balance as a result of falling oil prices and the Kingdom’s response to the COVID-19 pandemic. Independent experts played down these fears.