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Saudi Arabia is making bold strides in attracting global investment, with recent figures and international rankings highlighting the Kingdom’s growing appeal to foreign investors.
Backed by Vision 2030’s ambitious economic transformation agenda, the country is shifting away from oil dependency and emerging as a dynamic hub for international business.
- What are the numbers saying?
In the fourth quarter of 2024, Saudi Arabia recorded a 26% year-on-year surge in FDI, reaching $5.8 billion, up from $4.6 billion in Q4 2023. Compared to the previous quarter, inflows also rose 17%, signaling consistent quarterly growth in investor confidence.
These gains are largely driven by investments in non-oil sectors such as technology, tourism, healthcare, and manufacturing, underscoring the success of diversification efforts.
The Kingdom’s rising stature on the global investment map is further validated by its 13th place ranking in the 2025 Kearney FDI Confidence Index, its highest position to date.
This ranking reflects global recognition of Saudi Arabia’s ongoing policy reforms, infrastructure development, and economic resilience, making it one of the most attractive destinations for foreign capital in the coming years.
Non-oil sector growth continues to be the engine of this momentum. In Q1 2025, Saudi Arabia’s real GDP grew by 2.7%, fueled by a 4.2% increase in non-oil economic activity.
This shift is reinforced by updated GDP methodologies from the General Authority for Statistics (GASTAT), giving more accurate weightage to non-oil contributions and strengthening investor trust in the country’s economic data and transparency.
Where’s the Money Going?
A significant portion of FDI is flowing into the Eastern Province, which now accounts for 42% of total FDI stock, valued at $97.6 billion. With over 5,400 active foreign investment licenses, the region supports 53,000+ jobs and boasts a 36% localization rate, aligning with Saudization goals.
Additionally, 34 international companies have chosen the Eastern Province for their regional headquarters, drawn by its strategic location, robust infrastructure, and policy support.
The Eastern Province alone currently hosts over 600 investment opportunities worth $88.9 billion, available through the Invest Saudi platform. These projects align with national development plans and span multiple high-potential sectors.
What Lies Ahead?
Looking ahead, Saudi Arabia aims to attract $100 billion in FDI by 2030. To support this goal, the government continues to roll out reforms, offering tax incentives, ownership flexibility, and streamlined licensing, all through unified digital systems designed to ease business entry and operation.
Ready to explore Saudi Arabia’s investment landscape?
Read the full article now to dive deeper into regional investment stats, sector-specific insights, and how your business can benefit from Saudi Arabia’s economic transformation.
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