Saudi Arabia’s FDI surge continues to reflect growing investor confidence and the government’s drive toward economic transformation. In the first quarter of 2025, foreign direct investment increased by 44% year-on-year. Inflows reached SAR 22.2 billion ($6 billion), rising from SAR 15.5 billion ($4 billion) in the same period of 2024.
This increase aligns with Vision 2030, which focuses on reducing oil dependency and expanding the private sector. As a result, foreign capital is now targeting diverse industries such as tourism, entertainment, and sports.
According to the General Authority for Statistics, total inbound FDI in Q1 2025 reached SAR 24 billion ($6.4 billion). This represents a 24% gain from Q1 2024. However, it dipped by 6% compared to Q4 2024, when FDI peaked at SAR 25.6 billion ($6.8 billion).
Meanwhile, outbound FDI declined sharply. It dropped to SAR 1.8 billion ($480 million) in Q1 2025, down 54% from the previous year. Still, it rose by 7% compared to Q4 2024, showing signs of recovery.
To attract more global firms, the Saudi government now requires regional headquarters for companies seeking public contracts. This rule has encouraged multinationals to relocate operations to Riyadh and other Saudi cities.
Furthermore, the FDI in Saudi Arabia reflects a broader shift in investment flows. Investors are moving away from traditional sectors and exploring new opportunities across different regions of the Kingdom.
The 2023 Vision 2030 report confirmed this trend. FDI hit SAR 96 billion ($25.6 billion), up 50% from 2022. However, FDI as a share of GDP fell slightly due to weak global flows in 2021 and 2022.
Nevertheless, the Kingdom remains on track to reach its long-term FDI targets. Authorities aim to attract $100 billion annually by 2030, supported by legal reforms and “giga-projects.”
In 2023, Saudi Arabia adopted a new FDI calculation method with support from the International Monetary Fund. As a result, historical data was revised, and 2020 became the baseline for comparison.
Overall, the rise in FDI in the Kingdom points to the country’s rising profile as a global investment hub. With ongoing reforms, international partnerships, and economic diversification, the Kingdom continues to move confidently toward Vision 2030.
