Saudi Arabia’s Minister of Investment, Khalid al-Falih, is pushing back against growing skepticism with a bold new vision: ‘green shoring.’
Despite doubts about the kingdom's ability to shift from its long-standing dependence on oil, al-Falih is determined to prove that Saudi Arabia can lead the way in sustainable investment.
Speaking at a recent business forum in Italy, he emphasized that green-shoring is the key to unlocking new economic opportunities while positioning the country as a hub for environmentally friendly industries.
Al-Falih’s vision of green shoring is part of Saudi Arabia’s ambitious Vision 2030 plan, which aims to diversify the economy and reduce reliance on oil revenues.
The idea behind green shoring is to attract foreign businesses by promoting the decarbonization of supply chains, utilizing the kingdom’s vast renewable energy resources. Khalid al-Falih argues that Saudi Arabia is uniquely positioned to lead in this space, thanks to its access to solar and wind energy, modern infrastructure, and financial capabilities.
However, the initiative has been met with skepticism from some corners. Critics question whether Saudi Arabia, the world’s largest oil exporter, can truly transition to a greener future.
Some argue that the promotion of carbon capture and storage (CCS) technologies is merely a way to continue profiting from oil while appearing to support global climate goals.
Despite this, al-Falih remains confident that green-shoring will succeed, noting that 87% of Vision 2030’s targets have already been implemented or are near completion.
Khalid al-Falih’s persistence seems to be paying off, as foreign investment in Saudi Arabia is on the rise. In 2023, the number of foreign investment licenses issued nearly doubled, and foreign direct investment saw a 5.6% increase in the first quarter of the year.
These figures suggest that international businesses are increasingly willing to invest in the kingdom, encouraged by reforms aimed at improving the business environment and legal framework.
Green shoring, as promoted by al-Falih, is not just about environmental sustainability – it’s also about creating economic opportunities.
The initiative is expected to foster the growth of new industries in Saudi Arabia, including those focused on electric vehicles, green chemicals, and critical materials like lithium and copper.
These industries will not only contribute to global supply chain resilience but also create green jobs for Saudis, further boosting the economy.
As the world transitions toward net-zero emissions, Khalid al-Falih believes Saudi Arabia can play a central role in the shift.
Final remarks
While skepticism remains, the Saudi Investment Minister is determined to push forward with green shoring as a cornerstone of the kingdom’s economic transformation.
Whether this initiative can overcome the doubts and deliver the promised results remains to be seen.
However, with significant progress already made under Vision 2030, Saudi Arabia’s efforts to reduce its dependence on oil and embrace sustainability are moving steadily forward.