Saudi Gazette report

RIYADH — Saudi Arabia’s ongoing efforts to attract foreign direct investment (FDI) were reflected in the positive results for 2024, with inflows increasing by 24.2 percent to reach SR119.2 billion. Cumulative FDI stock nearly doubled to SR977.3 billion last year, compared to SR501.8 billion in 2017.

This performance outcome is part of the results, which were compiled following the publication of preliminary quarterly FDI estimates. These achievements highlight the effectiveness of Vision 2030 programs, national and sectoral strategies, and major initiatives, foremost among them is the National Investment Strategy, launched by Crown Prince and Prime Minister Mohammed bin Salman in 2021.

For the fourth consecutive year, the strategy’s performance indicators have exceeded all targets, covering Gross Fixed Capital Formation, FDI, and the relocation of regional headquarters of global companies to the Kingdom.

Gross Fixed Capital Formation achieved a historic record in 2024, exceeding SR1.3 trillion, surpassing its target by 38 percent. Private-sector investment, including non-governmental and non-oil, represented around 76 percent of the total, underscoring the dynamism of the local business environment.

Since its launch in 2016, Vision 2030 has driven a notable increase in foreign investment. FDI flows reached SR119.2 billion, exceeding the 2024 target of SR109 billion by 39 percent. Since 2017, annual FDI inflows have multiplied more than fourfold, rising from SR 28.1 billion to current levels.

The Kingdom’s reforms have fostered a competitive and attractive environment, reflected in the issuance of over 50,000 foreign investment licenses across diverse sectors. The number of regional headquarters relocated to the Kingdom also soared sharply, reaching 660 companies by 2024—a key milestone in positioning Saudi Arabia as a leading regional hub.

This represents a significant milestone in Saudi Arabia's economic transformation under Vision 2030, demonstrating strong investor confidence in the Kingdom's legislative and economic reforms.

In this context, Minister of Investment Khalid Al-Falih said: “The results of foreign direct investment in 2024 come amid global economic challenges and a slowdown in international flows. This success demonstrates the Kingdom's ability to navigate economic and investment challenges through an ambitious vision aimed at diversifying the economy, fostering an attractive investment environment, and creating high-quality opportunities."

He noted that this data proves the effectiveness of Vision 2030 and the National Investment Strategy in attracting diverse FDI from various countries. The results also confirm the Kingdom's commitment to economic diversification and sustainable development. For the first time, non-oil FDI flows accounted for about 90 percent of total flows in 2024, with the proportion of non-oil FDI in non-oil GDP reaching a globally satisfactory 4.2 percent.

Al-Falih remarked: "Thanks to the Kingdom's economic strength and ambitious vision; foreign investment is expected to continue flowing into the Saudi market, driven by unique opportunities and the Kingdom's strategic location as a gateway to the broader Middle East. The ongoing enhancement of the investment system, a key component of the National Investment Strategy and its supporting sectoral strategies, is crucial for accelerating the growth and economic diversification needed to achieve Vision 2030's goals."

Saudi Arabia’s methodology aligns with the Balance of Payments Manual and the International Investment Position Manual issued by the International Monetary Fund, ensuring consistency with leading international practices.