Saudi Arabia posts 5.6% rise in net FDI in first quarter of 2024
According to the latest data from the General Authority for Statistics, the net flow of FDI reached SR9.5 billion ($2.53 billion) in the first three months of this year, up from SR9 billion recorded during the same period last year.
Saudi Arabia reported a 5.6% rise in net flow of foreign direct investment in the first quarter of 2024 to SR9.5 billion (USD2.53 billion) up from the SR9 billion recorded during the same period last year, according to the General Authority for Statistics.
FDI inflows during the first quarter amounted to around SR17 billion, an increase of 0.6% over the SR16.9 billion recorded in the first quarter of 2023, but FDI outflows fell to SR7.5 billion, a drop of 5.1% compared to SR8 billion in Q1 2023.
These figures reflect the Kingdom’s drive to enhance its investment environment and support economic growth in line with the objectives its Vision 2030 economic blueprint and the goals set out in the National Investment Strategy.
The Saudi government has enacted substantial legal, economic and social reforms aimed at stimulating inflows of foreign direct investment and improving the retention of foreign capital within the Kingdom.
Launched in 2021, NIS looks to develop comprehensive investment plans across various sectors, such as manufacturing, renewable energy and transport, as well as logistics, tourism, digital infrastructure and healthcare. It is targeting an increase in annual FDI flows to over USD100 billion and annual domestic investment to over USD453 billion by 2030.
According to the World Investment Report released earlier this month by the UN Conference on Trade and Development (UNCTAD), Saudi Arabia attracted USD65.1 billion in FDI in the three years post-pandemic until 2023, placing it among West Asia’s top recipients. But the Kingdom’s FDI outflows totalled USD73.1 billion over the same period, with USD16 billion recorded last year. This places Saudi Arabia in the top 20 global economies for FDI outflows.
The UN report also noted a 55% annual increase in the value of international project finance deals in the Kingdom in 2023, totalling USD22 billion. Additionally, Saudi Arabia saw 389 announced greenfield projects in 2023, totalling USD29 billion, reflecting a 108% annual increase in value.
“Sovereign Saudi Arabia has had an influx of inquiries for consultancy and technology business setup. Technology companies make up 37% of the inquiries we received in the last Quarter, as Saudi pushes its digital transformation vision. Opening new tech-driven opportunities in education, online services, and enhancing business viability and visibility.” James Elliot-Square, Regional Business Development Manager at Sovereign Corporate Services.
