Saudi Arabia’s FDI Stock Reaches SR817.7 Billion in Q1 2024
In a recent report, Saudi Arabia’s foreign direct investment (FDI) stock surged to SR817.7 billion ($218 billion) in the first quarter of 2024, showcasing a 6.1 percent increase compared to the same period last year. This growth reflects the growing confidence among foreign investors in the Saudi investment ecosystem.
Strategic Approach Boosts FDI Confidence in the Kingdom
Brendan Marais, a partner at Kearney Middle East & Africa, highlighted Saudi Arabia’s deliberate focus on building FDI-attraction capabilities as a key factor setting it apart from other emerging markets. The Kingdom’s strategic approach has significantly boosted market confidence, with recent successes such as raising $12 billion from bond sales and climbing to the third position in the 2024 Kearney FDI Confidence Index.
Saudi Arabia’s Ambitious Goal of $100 Billion FDI by 2030
Despite global economic challenges, Saudi Arabia aims to attract $100 billion in FDI by 2030 as part of its Vision 2030 economic diversification efforts. The country has seen positive annual growth in investments, positioning itself as an attractive destination for international investors.
Enhancing Attractiveness for FDI
Saudi Arabia continues to improve its business laws, invest in human capital development, and foster a competitive environment for innovation to enhance its attractiveness for FDI. This approach is essential for sustaining the Kingdom’s FDI growth trajectory amidst global challenges.
Role of Human Capital in Driving FDI
Investment in human capital development is crucial for overall investment, including FDI, and economic growth. Saudi Arabia focuses on enhancing domestic talent and attracting global professionals to drive its economy forward.
FDI Target of $100 Billion by 2030 Within Reach
Elvie Lahournere, principal at Kearney Middle East & Africa, emphasized that Saudi Arabia has successfully built credibility with the international investment community and is well positioned to achieve its ambitious target of $100 billion FDI by 2030. The Kingdom’s geographic advantages, young and educated population, large local market, and growing regional integration play key roles in reaching this goal.