Arab News, Thursday, Apr 22, 2021 | Ramadan 10, 1442
Saudi trade name requests jump amid signs of FDI rebound
Saudi Arabia:
Saudi commercial chiefs have reported a rise in trade name requests, the latest
indicator of a rebound in business activity in the Kingdom.
Requests for trade names increased by 19 percent in the first quarter of 2021,
compared to a year earlier, SPA reported.
The Ministry of Commerce received 78,056 requests for trade names in the first
quarter of 2021, compared to 65,716 requests a year earlier.
Most of the applications were for restaurants, cafés, contracting and foodstuffs
activities — an encouraging sign from sectors that have been especially hit hard
by the pandemic.
The rollout of vaccines across the Gulf states is helping businesses in some
sectors get back to normal, however continued travel restrictions and the
resurgence of the COVID-19 coronavirus in countries such as India has tempered
earlier expectations of a strong and swift global recovery.
Still, there are also sign of rebounding foreign direct investment activity.
Sovereign AEI, a company that assists foreign investors establish a presence in
the country, has also reported an increase in activity and expects to record a
50 percent rise in registrations at the Ministry of Investment of Saudi Arabia
this year.
“The Saudi market presents tremendous opportunities,” said Paul Arnold, managing
director of Sovereign Saudi Arabia. “We continue to see a growing interest and
increasing shift of client focus toward KSA, as the country continues to unveil
new strategic initiatives.”
The Kingdom has accelerated efforts to attract foreign investment this year as
the pandemic created new challenges for regional economies seeking to diversify,
modernize and create jobs for citizens.
In February the government announced it would stop signing contracts with
foreign companies from 2024 unless their regional headquarters were based in the
Kingdom.