Saudi Arabia saw a 5.6 percent increase in net foreign direct investment (FDI) flows in the first quarter of 2024 compared to the same period the previous year.
According to the latest data from the General Authority for Statistics (GASTAT), the net FDI flow reached SAR9.5 billion ($2.53 billion) in the first three months of 2024, up from SAR9 billion in the first quarter of 2023.
Sustained investor confidence
This growth underscores Saudi Arabia’s continued appeal to international investors. The figures reflect the Kingdom’s ongoing efforts to enhance its investment environment and support economic growth, in line with the objectives of Vision 2030.
FDI inflows and outflows
FDI inflows during the first quarter of 2024 amounted to around SAR17 billion, marking a 0.6 percent increase from the SAR16.9 billion recorded in the first quarter of 2023. This moderate increase highlights the sustained confidence of foreign investors in the Saudi market.
On the other hand, FDI outflows during the first three months of 2024 totaled about SAR7.5 billion, representing a 5.1 percent decrease compared to SAR8 billion in the first quarter of 2023. This decline in outflows indicates a stronger retention of foreign capital within the Kingdom.
Driving investment reforms
The National Investment Strategy (NIS) launched in 2021 and the goals set out in Vision 2030 have driven substantial legal, economic, and social reforms aimed at stimulating FDI inflows. NIS looks to develop comprehensive investment plans across various sectors, such as manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare.
Global recognition and achievements
According to the World Investment Report released in 2023 by the UN Conference on Trade and Development, Saudi Arabia attracted $65.1 billion in FDI in the three years post-pandemic until 2023, placing it among West Asia’s top recipients. The Kingdom’s FDI outflows totaled $73.1 billion over the same period, with $16 billion recorded in 2023 alone, ranking Saudi Arabia among the top 20 global economies for FDI outflows.
The UN report also noted a 55 percent annual increase in the value of international project finance deals in the Kingdom in 2023, reaching $22 billion. Last year, Saudi Arabia witnessed 19 such deals, marking a 90 percent growth compared to the previous year. Additionally, the nation saw 389 announced greenfield projects in 2023, totaling $29 billion, reflecting a 108 percent annual increase in value.
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