Saudi Arabia Sees 5.6% Increase in Foreign Direct Investment in Q1 2024
In the first quarter of 2024, Saudi Arabia experienced a 5.6 percent rise in net flow of foreign direct investment compared to the previous year, according to official data from the General Authority for Statistics.
Continuing Appeal to International Investors
The net flow of FDI reached SR9.5 billion ($2.53 billion) in the first three months of 2024, up from SR9 billion recorded during the same period in 2023. This growth highlights Saudi Arabia’s ongoing efforts to enhance its investment environment and support economic growth in line with the objectives of Vision 2030.
Confidence of Foreign Investors
FDI inflows during the first quarter amounted to around SR17 billion, marking a growth of 0.6 percent from the previous year. This increase demonstrates the sustained confidence of foreign investors in the Saudi market. Conversely, FDI outflows decreased by 5.1 percent, indicating a stronger retention of foreign capital within the Kingdom.
National Investment Strategy and Vision 2030
Saudi Arabia has implemented significant legal, economic, and social reforms to stimulate inflows of foreign direct investment, aligning with the goals of the National Investment Strategy and Vision 2030. The National Investment Strategy, launched in 2021, aims to develop comprehensive investment plans across various sectors to boost FDI flows and domestic investment by 2030.
Saudi Arabia Attracts International Investment
According to the World Investment Report by the UN Conference on Trade and Development, Saudi Arabia attracted $65.1 billion in FDI in the three years post-pandemic until 2023, ranking among West Asia’s top recipients. The Kingdom also saw significant FDI outflows and an increase in international project finance deals and greenfield projects in 2023.