This growth underscores Saudi Arabia’s continuing attractiveness to international investors.
Saudi Arabia’s net foreign direct investment (FDI) flows increased 5.6% in the first quarter of 2024 compared to the same period last year.
According to the latest data from the General Authority of Indian Statistics (GASTAT), net FDI inflows in the first three months of 2024 reached 9.5 billion Saudi riyals ($2.53 billion), up from 9 billion Saudi riyals in the first quarter of 2023.
Sustained investor confidence
This growth underscores Saudi Arabia’s continued attractiveness to international investors. These figures reflect the Kingdom’s ongoing efforts to improve the investment climate and support economic growth, in line with the goals of Vision 2030.
FDI inflows and outflows
FDI inflows in the first quarter of 2024 were approximately SAR 17 billion, up 0.6% from SAR 16.9 billion in the first quarter of 2023. This moderate increase highlights the continued confidence of foreign investors in the Saudi Arabian market.
Meanwhile, FDI outflows in the first three months of 2024 totaled approximately SAR 7.5 billion, down 5.1% compared to SAR 8 billion in the first quarter of 2023. This decrease in outflows indicates an increased retention of foreign capital in the Kingdom.
Promoting investment reform
The National Investment Strategy (NIS), launched in 2021, and the goals set out in Vision 2030 have driven significant legal, economic and social reforms aimed at stimulating FDI inflows. The NIS aims to develop a comprehensive investment plan across a range of sectors, including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure and healthcare.
Read more: Saudi Arabia’s GDP to grow 1.4% in Q1 2024, non-oil activity up 3.4% y/y: GASTAT
Global recognition and achievements
According to the United Nations Conference on Trade and Development’s World Investment Report 2023, Saudi Arabia attracted $65.1 billion in FDI in the three years to 2023 after the pandemic, making it the largest recipient in West Asia. The country’s FDI outflows reached $73.1 billion over the same period, with $16 billion recorded in 2023 alone, ranking Saudi Arabia among the top 20 economies in the world by FDI outflows.
The UN report also noted that the value of international project finance deals in Saudi Arabia will grow 55 percent annually to $22 billion in 2023. Last year, Saudi Arabia saw 19 such deals, a 90 percent increase from the previous year. Additionally, 389 greenfield projects were announced in the country in 2023, with a total value of $29 billion, representing a 108 percent increase in annual value.
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