An economic report expected the Saudi market to be classified as the fifth emerging economy in the world within two years after China, Brazil, India and Malaysia. Government expenditure on projects is a major factor for the classification. The report - issued by a specialized center for economic studies and research - noted that the acceleration of the Saudi economy's growth is due to a number of factors, such as the major economic reforms carried out by the government in the last 5 years - the most prominent are the recent laws and regulations endorsed to encourage the movement of commerce and investment along with the development of Saudi training and educational institutes based on the need of the labor market. The report added that the large size of liquidity in the Kingdom is due to high oil prices. The very large size of liquidity, the stock market's high risks and the extremely high real estate prices forced investors and capital owners to look for new investments especially in industry, which are encouraged by the government and bank financial support in the form of funding the projects. The report called on the chambers of commerce and industry as well as banks to support small investments as they play an important role in the industrial or investment sectors in emerging markets. It noted that there are still many obstacles in funding small projects. Custodian of the two Holy Mosques King Abdullah has been a central figure in the Kingdom's modernization process by encouraging the efforts of the Saudi Arabian General Investment Authority (SAGIA) to stimulate domestic and foreign investment, streamlining privatization moves and acceding to the World Trade Organization. At the same time the Kingdom is gradually opening up sectors for investors including telecommunications, airlines and insurance and is continuing to support the main engines of economic growth by encouraging local and foreign private sectors to contribute to development of Saudi Arabia's new economic cities. Last year, the World Bank in its annual global Doing Business report recognized the Kingdom as one of the world's top reformers, with Saudi Arabia being advanced fifteen places to rank 23rd out of 178 countries as one of the easiest countries to conduct business. According to the World Bank, the Kingdom rates the best of any Middle East state even ahead of mature economies such as France and Austria. The Kingdom is now aiming to be among the top ten most competitive countries globally by 2010 increasingly focusing on building a knowledge-based economy. A record 1,438 joint ventures were authorized in 2007, a figure 32 percent higher than in 2006. The foreign direct investment flow is expected to increase yet further. __
