Saudi Arabia’s private sector is driving a massive investment surge, reaching SR1.18 trillion ($314 billion) in 2024. This marks a 5.3 percent increase compared to the previous year, according to recent data from the Ministry of Investment.
The rapid rise in investments comes primarily from the non-government sector, which grew by 7.6 percent. The country’s total investments between 2021 and 2024 amounted to SR4.11 trillion, surpassing initial targets by 28 percent. This strong momentum aligns with Saudi Arabia’s National Investment Strategy, which aims to push total annual investments to SR2 trillion by 2030.
A major factor in this growth is the private sector’s dominant role. In 2024, private investments accounted for 88 percent of total capital formation, reaching SR1.03 trillion. Meanwhile, government investments declined by 8.3 percent to SR144.3 billion, highlighting a shift toward private-led economic expansion.
Foreign investments have also exceeded expectations. Between 2021 and the third quarter of 2024, foreign direct investment (FDI) inflows reached SR391 billion, surpassing the initial target of SR295 billion by 33 percent. This includes SR104 billion from the Aramco deal, demonstrating global confidence in Saudi Arabia’s economic future.
The country has implemented major reforms to attract investors. Streamlining regulations, introducing tax incentives, and launching the Regional Headquarters Program have encouraged multinational corporations to establish a presence. Additionally, massive projects like NEOM, Qiddiya, and the Red Sea initiative are drawing global interest.
To further boost investment, Saudi Arabia recently approved the establishment of the Saudi Investment Promotion Authority. Announced during a Cabinet meeting led by Crown Prince Mohammed bin Salman, the new entity will work to enhance the business climate and attract global capital.
Investment Minister Khalid Al-Falih emphasized that Saudi Arabia’s investor-friendly policies, strategic location, and advanced infrastructure solidify its status as a global investment hub. As private sector investments continue to rise, the Kingdom is well on track to achieving its Vision 2030 economic goals.
