Saudi Foreign Direct Investment Inflows Surge 44% in Q1
The Kingdom attracts $5.9 billion in net foreign direct investment amid rising global investor confidence.
Riyadh - Saudi Arabia's appeal to global investors has grown significantly, as evidenced by the country's robust first-quarter foreign direct investment (FDI) figures.
According to data released by the General Authority for Statistics (GASTAT), Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net FDI in Q1 2025 - a 44% year-on-year increase from the same period last year, which saw inflows amounting to SR15.5 billion.
Although this marks a 7% drop compared to the preceding quarter's SR24.0 billion, it highlights a positive trend of sustained investment interest into the Saudi economy.The gross FDI inflow figure stood at SR24 billion for Q1 2025 - representing a significant increase of 24% from Q1 2024's SR19.4 billion but showing a minor decline from the previous quarter's SR25.6 billion.
The net FDI figure, which factors in outflows such as dividends and loan repayments, points to an actual increase in foreign capital retained within the Kingdom.This uptick in FDI coincides with Saudi Arabia's recent recognition in global investor circles.
In April, the Kingdom achieved a historic high rank of 13th place on Kearney's 2025 Foreign Direct Investment Confidence Index while maintaining its position as one of the top three emerging markets globally, signaling robust confidence among investors.In their report, GASTAT stated that outflows - capital leaving the country such as dividends or repatriated profits - reached SR1.8 billion in Q1 2025, a marked decrease from the SR3.9 billion recorded in the same period last year and up slightly from the previous quarter's SR1.7 billion.The narrowing gap between inflows and outflows underscores the resilience of Saudi Arabia's investment climate as it undergoes an ongoing economic transformation.
This trend reflects not only multinational companies' increasing establishment of regional headquarters within the Kingdom but also the implementation of new localization policies linked to government contracts, which have encouraged global firms such as Dell Technologies to expand their presence in Riyadh.Globally, FDI inflows are experiencing a decline amid geopolitical tensions and weaker investor sentiment.
The UN Conference on Trade and Development reported that inward FDI into Saudi Arabia fell 31% last year to $15.73 billion while outflows rose by 27.1% to $22.04 billion.
According to data released by the General Authority for Statistics (GASTAT), Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net FDI in Q1 2025 - a 44% year-on-year increase from the same period last year, which saw inflows amounting to SR15.5 billion.
Although this marks a 7% drop compared to the preceding quarter's SR24.0 billion, it highlights a positive trend of sustained investment interest into the Saudi economy.The gross FDI inflow figure stood at SR24 billion for Q1 2025 - representing a significant increase of 24% from Q1 2024's SR19.4 billion but showing a minor decline from the previous quarter's SR25.6 billion.
The net FDI figure, which factors in outflows such as dividends and loan repayments, points to an actual increase in foreign capital retained within the Kingdom.This uptick in FDI coincides with Saudi Arabia's recent recognition in global investor circles.
In April, the Kingdom achieved a historic high rank of 13th place on Kearney's 2025 Foreign Direct Investment Confidence Index while maintaining its position as one of the top three emerging markets globally, signaling robust confidence among investors.In their report, GASTAT stated that outflows - capital leaving the country such as dividends or repatriated profits - reached SR1.8 billion in Q1 2025, a marked decrease from the SR3.9 billion recorded in the same period last year and up slightly from the previous quarter's SR1.7 billion.The narrowing gap between inflows and outflows underscores the resilience of Saudi Arabia's investment climate as it undergoes an ongoing economic transformation.
This trend reflects not only multinational companies' increasing establishment of regional headquarters within the Kingdom but also the implementation of new localization policies linked to government contracts, which have encouraged global firms such as Dell Technologies to expand their presence in Riyadh.Globally, FDI inflows are experiencing a decline amid geopolitical tensions and weaker investor sentiment.
The UN Conference on Trade and Development reported that inward FDI into Saudi Arabia fell 31% last year to $15.73 billion while outflows rose by 27.1% to $22.04 billion.
