Net inflows of foreign direct investment (FDI) to Saudi Arabia amounted to SAR11.7 billion ($3.12 billion) during the second quarter of 2024, an annual decline of 7.5 percent and a quarter-on-quarter rise of 23.4 percent.
The General Authority for Statistics (GASTAT) recently revealed that the total volume of FDI inflows into Saudi Arabia reached SAR19.4 billion during Q2 of 2024, similar to Q2 of 2023 levels. Compared to Q1 of 2024, total inflows achieved a growth of 14.5 percent.
Meanwhile, the volume of Saudi Arabia’s FDI outflows amounted to about SAR7.8 billion during the second quarter of 2024, a 14.1 percent rise compared to the second quarter of 2023, where the volume of outflows reached SAR6.8 billion. Outflows also recorded an increase of 3.4 percent compared to the first quarter of 2024, which recorded SAR7.5 billion.
Updates to investment law
Under Vision 2030, Saudi Arabia aims to attract $100 billion in FDI by the end of the decade. Therefore, it launched new updates to its investment law last month to support growth.
Saudi Arabia’s council of ministers approved in August the updated investment law, building on previous reforms under Vision 2030 and the National Investment Strategy. The Kingdom’s latest investment law updates bring together several existing freedoms and rights and apply them to investors under one unified framework, ensuring greater transparency, flexibility, and confidence for investors.
The investment law update, in addition to Saudi Arabia’s comprehensive reform agenda, offers investors new opportunities, demonstrating the Kingdom’s commitment to attracting additional foreign direct investment (FDI), even amid a global decline in FDI.
“The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a premier global investment destination,” stated Khalid Al-Falih, Minister of Investment.
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