Saudi FDI climbed sharply in the second quarter of 2025, underscoring the Kingdom’s appeal for long-term global investors. Net inflows rose 14.5 percent year on year to SR22.8 billion ($6.1 billion). This growth highlights investor confidence in reforms and diversification efforts under Vision 2030.
Data from the General Authority for Statistics showed the inflows compared favorably with SR19.9 billion in the same quarter last year. However, on a quarterly basis, Saudi FDI dipped 3.5 percent from SR23.7 billion recorded in the first quarter. This decline reflects the global headwinds affecting capital flows worldwide.
The increase in net inflows reflects broader reforms to attract foreign capital. Saudi Arabia has opened key sectors such as tourism, renewable energy, and technology. The Ministry of Investment continues to launch initiatives positioning the Kingdom as a hub for capital flows.
GASTAT reported that total inflows reached SR24.9 billion in the second quarter, down 11.5 percent compared with SR28.2 billion a year earlier. In addition, inflows fell 3.5 percent compared with SR26 billion in the first quarter of 2025.
Meanwhile, outflows dropped significantly to SR2.1 billion. This represented a 74.5 percent fall compared with SR8.2 billion in the previous year. On a quarterly basis, outflows were also down 10.5 percent from SR2.3 billion.
The reforms show clear results, but momentum depends on investor trust in stability and diversification progress. Saudi officials issued 83 new industrial licenses in June and launched 58 factories valued at SR2.85 billion. These steps underline the government’s focus on manufacturing growth and industrial expansion.
Regional competition remains intense. The UAE attracted $45.6 billion in inflows during 2024, securing a top-ten global ranking. Dubai alone recorded a 33 percent rise in capital, supported by more than 1,100 greenfield projects.
Industry experts note that Saudi FDI reflects the country’s drive to reduce reliance on oil. The government is reportedly considering easing foreign ownership caps in listed companies to boost equity inflows. Global firms, including asset managers, have also signed preliminary agreements to establish operations targeting infrastructure and energy.
Looking forward, officials aim to balance regulatory reforms with market liberalization. Continued diversification efforts will be essential to sustain Saudi FDI inflows and cement the Kingdom’s role as a leading regional hub.
