Foreign Direct Investment in Saudi Arabia rises to US$215 billion

Khalid Al Falih, the Saudi Minister of Investment, highlighted the significant pro-investment measures implemented by Saudi Arabia in recent years. These measures include the introduction of the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law, and Special Economic Zones. As a result of these reforms, there has been a remarkable increase in gross fixed capital formation, which rose by 74 percent from 2017 to nearly $300 billion in 2023.

Furthermore, Foreign Direct Investment (FDI) stock experienced a 61 percent increase from 2017 to 2023, reaching almost $215 billion in 2023. FDI inflows also surged by 158 percent, rising from $7.5 billion in 2017 to $19.3 billion in 2023. These initiatives, along with incentives, facilities, and enablers, have encouraged investors to pursue opportunities in a positive, supportive, and stable investment environment, as reported by the Saudi Press Agency (SPA).

Minister Al Falih emphasized, “The law confirms Saudi Arabia’s commitment to establishing a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a leading global investment destination.”

The policy direction outlined in Vision 2030 provides investors with the certainty they need to invest and grow with confidence, especially at a time when many other markets are experiencing significant volatility.

It is expected that the executive regulations will come into effect beginning in 2025.