Saudi Arabia recorded a 23.4% rise in foreign direct investment (FDI) during the second quarter of 2024, according to the latest data from the General Authority for Statistics (GASTAT). Net FDI flow reached SR11.7 billion ($3.12 billion) between April and June, up from SR9.5 billion in the first quarter.
This impressive growth aligns with Saudi Arabia’s ambitious Vision 2030 goal of attracting $100 billion in FDI by the decade’s end. Despite a 7.5% year-on-year decline compared to the second quarter of 2023, the quarter-on-quarter rise highlights the Kingdom’s ongoing efforts to enhance its investment environment.
Outflows amounted to SR7.8 billion, reflecting a year-on-year increase of 14.1%. However, inflows in the same period grew by 14.5% to SR19.4 billion.
The Kingdom’s recent reform efforts were bolstered by the approval of an updated investment law in August, which aims to simplify processes and strengthen protections for investors. The law promises fair treatment, property rights protection, and safeguards for intellectual property.
In line with these reforms, a Standard Chartered report noted that Saudi Arabia could achieve $24 billion in FDI this year. The report emphasized that FDI, alongside public and private sector investments, will be key drivers of future economic growth.
As the Kingdom continues its diversification efforts, officials are increasingly looking to Asia and Europe to bolster investment opportunities.
