Saudi Arabia's Capital Formation Reaches $84.7bn in Q1 2024
Saudi Arabia’s gross fixed capital formation hit SR317.5 billion, or one dollar equals 84.7 billion, in the first quarter of 2024. This reflects a 7.9 percent year-over-year increase, driven by growth in both government and non-government sectors. Key initiatives under Vision 2030, such as the National Investment Strategy, are pivotal in supporting economic diversification and expansion.
Saudi Arabia’s gross fixed capital formation (GFCF) soared to SR317.5 billion (one dollar equals 84.7 billion) in Q1 2024, a 7.9 percent increase compared to the same period last year.
The Ministry of Investment attributes this growth to robust performances in both government and non-government sectors.
Government contributions to GFCF grew by 18 percent, making up 7 percent of the total, while the non-government sector, accounting for 93 percent, saw a 7.2 percent rise.
These advances align with initiatives under Vision 2030, such as the National Investment Strategy and zero-income tax incentives, which aim to diversify the economy.
The Ministry issued 3,157 investment licenses this quarter, a 93 percent increase year-over-year, with the construction and manufacturing sector dominating at 47 percent of all permits.
Real estate saw the highest year-on-year growth at 253.3 percent.
Additionally, 127 international firms, including Google and Microsoft, moved their regional headquarters to Saudi Arabia.
The Kingdom's National Investment Strategy aims to raise FDI to 3.4 percent of GDP by 2025 and increase GFCF's contribution to 30 percent by 2030.
The Shareek program plans to boost private sector domestic investment by 1.3 trillion dollars by 2030.
The Ministry of Investment attributes this growth to robust performances in both government and non-government sectors.
Government contributions to GFCF grew by 18 percent, making up 7 percent of the total, while the non-government sector, accounting for 93 percent, saw a 7.2 percent rise.
These advances align with initiatives under Vision 2030, such as the National Investment Strategy and zero-income tax incentives, which aim to diversify the economy.
The Ministry issued 3,157 investment licenses this quarter, a 93 percent increase year-over-year, with the construction and manufacturing sector dominating at 47 percent of all permits.
Real estate saw the highest year-on-year growth at 253.3 percent.
Additionally, 127 international firms, including Google and Microsoft, moved their regional headquarters to Saudi Arabia.
The Kingdom's National Investment Strategy aims to raise FDI to 3.4 percent of GDP by 2025 and increase GFCF's contribution to 30 percent by 2030.
The Shareek program plans to boost private sector domestic investment by 1.3 trillion dollars by 2030.
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Translated by AI
