Saudi Arabia recently released detailed foreign direct investment (FDI) statistics for 2023 based on the new methodology of the Balance of Payments Manual (BPM6) published by the IMF. These statistics were developed by a detailed analysis of all licensed international investors in the Kingdom.
The new statistics show that the actual performance of FDI in Saudi Arabia has exceeded the targets of the National Investment Strategy (NIS). Last year, FDI inflow amounted to SAR96 billion ($25.5 billion), exceeding the NIS target of SAR83 billion ($22 billion) by 16 percent.
FDI inflows surge 50 percent
The analysis also revealed that FDI inflow reached 2.4 percent of Saudi Arabia’s GDP in 2023, achieving the NIS target. In addition, they grew by 50 percent year-on-year after excluding the exceptional Aramco pipeline deal in 2022. The Kingdom’s FDI stock also increased by 13 percent year-on-year in 2023, amounting to approximately SAR900 billion ($240 billion).
The data demonstrate clear momentum for Saudi Arabia as a globally attractive investment destination, with Vision 2030 programs, sector strategies, and initiatives playing a key role in attracting more foreign investments from around the world.
Compared to other G20 countries, Saudi Arabia ranked 11th in terms of FDI net inflow and 16th in terms of cumulative FDI stock in 2023. Additionally, it ranked 2nd in terms of FDI net inflow growth rate in 2023, and 4th in terms of FDI stock growth rate for the same year.
Manufacturing attracts the most FDI
Sector-wise, the analysis also revealed that manufacturing was the number one top economic activity in terms of FDI stock, inflow, and net inflow.
In terms of the top 15 countries by ultimate controlling parent (UCP), the United States topped the list with regards to FDI stock, with SAR202 billion ($54 billion) and 23 percent of total FDI stock in the Kingdom. Meanwhile, the United Arab Emirates ranked first among the countries in terms of FDI inflow, with SAR13 billion ($3 billion), representing 14 percent of the total.
Read: UAE’s real GDP expected to expand by 5.1 percent in 2025, according to IMF
Vision 2030’s impact on foreign investments
Since the announcement of Vision 2030 in 2016, key FDI indicators have significantly improved, with the data showing the National Investment Strategy exceeding its targets in 2021, 2022, and 2023. Comparing FDI data since the launch of the Kingdom’s Vision 2030, the analysis revealed that FDI inflow nearly tripled, with the average of the last three years (2021-2023) reaching SAR112 billion ($30 billion), following the launch of the NIS, compared to an average of SAR43 billion ($11.5 billion) from 2013-2015 before the launch of Saudi Vision 2030.
Between 2017 and 2023, Saudi Arabia’s FDI gross inflows increased by more than 240 percent from SAR28 billion ($7.5 billion) in 2017 to SAR96 billion ($25.5 billion) in 2023. Meanwhile, FDI outflows declined by around 60 percent from SAR24 billion ($6.5 billion) to SAR10 billion ($2.7 billion).
During the same period, FDI net inflows increased by more than 2,000 percent from SAR4 billion ($1.1 billion) to SAR86 billion ($23 billion) while Saudi Arabia’s FDI stock increased by around 80 percent.
Minister of Investment Eng. Khalid A. Al-Falih said the data convincingly demonstrate the success of Vision 2030 in diversifying and growing the economy, creating a best-in-class investment environment, and providing unprecedented opportunities for investors.
“These detailed numbers show that Vision 2030 and the National Investment Strategy are succeeding in attracting FDI across the country from numerous source countries and into a wide range of sectors,” he added.
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