Saudi Arabia Sees 5.6% Increase in Q1 2024 FDI Inflows, Boosting Vision 2030 Goals
n the first quarter of 2024, Saudi Arabia experienced a 5.6 percent rise in net foreign direct investment (FDI) flows compared to the same period in the previous year. Data from the General Authority for Statistics (GASTAT) reveals that net FDI flow reached SAR9.5 billion ($2.53 billion) in the first three months of 2024, up from SAR9 billion in the first quarter of 2023.
This growth reflects Saudi Arabia’s ongoing appeal to international investors and aligns with the Kingdom’s efforts to enhance its investment environment, in line with Vision 2030 objectives.
FDI inflows during Q1 2024 were around SAR17 billion, a 0.6 percent increase from the SAR16.9 billion recorded in Q1 2023, demonstrating sustained confidence in the Saudi market. Conversely, FDI outflows totaled about SAR7.5 billion, a 5.1 percent decrease from SAR8 billion in Q1 2023, indicating stronger retention of foreign capital within the Kingdom.
The National Investment Strategy (NIS), launched in 2021, alongside Vision 2030, has driven significant legal, economic, and social reforms to stimulate FDI inflows. NIS aims to develop comprehensive investment plans across sectors such as manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare.
According to the 2023 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 it among West Asia’s top recipients. The Kingdom’s FDI outflows totaled $73.1 billion over the same period, with $16 billion recorded in 2023 alone, placing Saudi Arabia among the top 20 global economies for FDI outflows.
The UN report also noted a 55 percent annual increase in the value of international project finance deals in the Kingdom in 2023, reaching $22 billion. Last year, Saudi Arabia saw 19 such deals, marking a 90 percent growth compared to the previous year. Additionally, the nation witnessed 389 announced greenfield projects in 2023, totaling $29 billion, reflecting a 108 percent annual increase in value.
