Spotlight: Record Inward Investment Secured in Saudi Arabia
FDI has seen a surge on a quarterly basis in Saudi Arabia, a testimony to increased investor confidence in the local market potential.
Saudi Arabia has set a target of attracting $100 billion in FDI by 2030. As it forges ahead with its diversification strategy, it is well on its way to achieving that objective.
Recent data reveals record inflows throughout the Kingdom, attesting to its growing influence and active investor participation in key infrastructure development projects currently underway nationwide.
We’ve compiled last week’s announcements addressing the quarterly growth of FDI inflows in Saudi, which is a key driver of the continued expansion of its non-oil sector.
FDI Inflows Rise 26% in Q4 2024
Saudi Arabia witnessed a 26% surge in net FDI inflows in Q4 2024, reaching $5.8 billion (SR22.1 billion), compared to $4.6 billion (SR17.5 billion) recorded in the same period last year.
This jump reflects growing investor interest in the Kingdom’s non-oil sectors, driven by tax incentives, transparent legal systems and regulatory reforms that anchor FDI.
On a national level, FDI flows into Saudi reached $6.3 billion (SR23.8 billion) in Q4 2024, 17% higher than Q3 2024.
It is pertinent to note that Saudi has climbed into 13th place in Kearney’s 2025 FDI Confidence Index, representing its highest-ever ranking.
GDP Rises in Q1 2025 on Back of Non-Oil Growth
The national real gross domestic product (GDP) grew by 2.7% year-on-year in Q1 2025. Notably, this growth was driven by robust non-oil sector activity.
Specifically, non-oil activities grew by 4.2%, while government activities rose by 3.2%.
The General Authority for Statistics (GASTAT) updated its GDP methodology to increase non-oil sector weightings, aligning with international standards.
This transparency enhances investor confidence, laying a strong groundwork for FDI growth.
Private sector and FDI growth remained robust, linked to government initiatives and Vision 2030 Realization Programs. Higher oil prices in Q1 temporarily boosted government spending.
Eastern Province Emerges as Top FDI Destination
The Eastern province is now the Kingdom’s top destination for FDI, boasting an FDI stock of $97.6 billion (SR366 billion) and representing 42% of the country’s total FDI stock.
The Eastern Province had issued over 5,400 active foreign investment licenses, supporting more than 53,000 jobs and achieving a 36% localization rate.
Moreover, 34 international companies have already been granted licenses to set up their regional headquarters in the Eastern Province. These span high-value sectors such as petrochemicals, energy, mining, real estate, and manufacturing.
Over 600 investment opportunities worth more than $88.9 billion (SR330 billion) are available in the region. Potential investors can use the Invest Saudi platform to explore these opportunities, which act as strategic entry points to the Saudi market.
