Saudi Arabia’s FDI Inflows Surge by 24% to $32 Billion in 2024: Unveiling Key Investments and Economic Growth Strategies

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September 3, 2025

Riyadh – Saudi Arabia is experiencing a remarkable surge in foreign direct investment (FDI), with 2024 figures demonstrating the important impact of the nation’s aspiring Vision 2030 program and the National Investment Strategy. Recent data released by the Ministry of Investment reveals ample growth across key economic indicators,signaling a prosperous shift towards economic diversification.

Investment Performance Exceeds expectations

For the fourth consecutive year, the performance of the National Investment Strategy, initiated in 2021 by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, has surpassed projected targets.This success is evident in indicators like Gross Fixed capital Formation (GFCF), overall FDI inflows, and the strategic relocation of international companies’ regional headquarters to the Kingdom.

Notably, Gross Fixed Capital Formation surpassed SR1.3 trillion (approximately $347 billion) in 2024,exceeding the established target by 38 percent. A significant portion of this investment, 76 percent, originated from the private sector, highlighting growing confidence in the Saudi arabian market.

Annual FDI inflows have more than quadrupled as 2017, increasing from SR28.1 billion ($7.5 billion) to current levels. Together, the cumulative FDI stock nearly doubled, rising from SR501.8 billion ($133.8 billion) in 2017 to SR977.3 billion ($260.5 billion) in 2024.

Expanding Investment Landscape

Over 50,000 foreign investment licenses have been granted across a broad spectrum of industries, indicative of the Kingdom’s diversified economic appeal. Furthermore, the number of multinational corporations establishing their regional headquarters within Saudi Arabia reached 660 by the end of 2024.

Khalid Al Falih, the Minister of Investment, emphasized the Kingdom’s resilience in the face of global economic headwinds. “The results of foreign direct investment in 2024 are occurring against a backdrop of global economic challenges and a slowdown in international investment flows,” he stated. “This achievement underscores the Kingdom’s capacity to navigate these difficulties through a forward-looking vision dedicated to diversifying the economy, cultivating an attractive investment climate, and generating high-value opportunities.”

A particularly noteworthy growth is the composition of FDI inflows. For the frist time, non-oil FDI accounted for approximately 90 percent of the total inflows in 2024, with non-oil FDI contributing 4.2 percent to the Kingdom’s non-oil Gross Domestic Product. The International Monetary Fund (IMF) methodologies were consistently applied in compiling these results, ensuring comparability with international standards.

Minister Al Falih anticipates continued growth in foreign investment, fueled by the Kingdom’s robust economy, ambitious vision, advantageous geographic location, and the vast potential it offers as a gateway to the broader Middle eastern market.

Indicator	2017	2024	Change
Gross Fixed Capital Formation (SR trillion)	N/A	1.3+	+38% above target
Annual FDI Inflows (SR Billion)	28.1	>112.4	+4x increase
Cumulative FDI Stock (SR billion)	501.8	977.3	Nearly doubled

Understanding Vision 2030

Launched in 2016, Vision 2030 is Saudi arabia’s strategic framework aimed at reducing the Kingdom’s dependence on oil, diversifying its economy, and developing public service sectors such as health, education, infrastructure, recreation, and tourism. The plan encompasses a wide range of initiatives, including investments in renewable energy, technology, and tourism.

Did You Know? Saudi Arabia aims to increase the contribution of the private sector to the GDP from 40% to 65% by 2030.

Pro Tip: Investors interested in Saudi Arabia should familiarize themselves with the Kingdom’s evolving regulatory landscape and consider partnering with local experts.

Frequently Asked Questions About Saudi Investment

• What is driving the increase in FDI to Saudi Arabia? The increase is largely attributed to Vision 2030, economic diversification efforts, and a more attractive investment surroundings.
• What sectors are attracting the most foreign investment? Non-oil sectors are experiencing the largest inflows, including technology, tourism, and renewable energy.
• How does Saudi Arabia’s FDI compare to other regional economies? Saudi arabia has experienced growth in FDI that considerably outpaces many of its regional counterparts, particularly in non-oil sectors.
• What is the role of the Ministry of Investment? The Ministry of Investment is responsible for attracting and facilitating foreign investment in Saudi Arabia.
• What are the long-term goals of Vision 2030? Vision 2030 aims to transform Saudi Arabia into a diversified and sustainable economy, less reliant on oil revenue.

What are your thoughts on Saudi Arabia’s economic conversion? Do you see further investment opportunities emerging in the Kingdom?

How might the Saudi government’s ongoing legal framework adjustments impact long-term investor confidence and FDI inflows?

The 2024 FDI Boom: A Record Year for Saudi Arabia

Saudi Arabia witnessed a remarkable 24% increase in Foreign Direct Investment (FDI) inflows in 2024, reaching a significant $32 billion. This surge signifies a pivotal moment in the kingdom’s economic diversification efforts under Vision 2030, attracting global capital and bolstering its non-oil sector. The increase in foreign investment in Saudi Arabia demonstrates growing confidence in the nation’s economic stability and future prospects. This represents a notable jump from the $25.8 billion recorded in 2023, highlighting the accelerating pace of investment.

Key Sectors Driving FDI Growth

Several sectors have been instrumental in driving this extraordinary FDI growth. Understanding these areas is crucial for investors looking at investment opportunities in Saudi Arabia:

Non-Oil Sector Expansion: The majority of FDI is flowing into non-oil sectors,aligning with Vision 2030’s goal of reducing reliance on hydrocarbons.

manufacturing: Increased investment in manufacturing, especially in automotive and industrial components, is a key driver. The Kingdom is actively seeking to establish itself as a regional manufacturing hub.

Renewable Energy: Saudi arabia’s enterprising renewable energy targets are attracting significant FDI in solar, wind, and green hydrogen projects. This aligns with global trends in enduring investment.

Tourism & Hospitality: The growth of mega-projects like NEOM, the Red Sea Project, and Qiddiya is attracting substantial investment in tourism infrastructure and hospitality.

Technology & Innovation: A growing startup ecosystem and government initiatives to promote technological innovation are attracting venture capital and FDI in the tech sector.

Major Investment deals of 2024

2024 saw several landmark investment deals solidify Saudi Arabia’s position as an attractive investment destination. These include:

1. Hyundai Motor Group’s Investment: A $1.8 billion investment in electric vehicle manufacturing facilities, demonstrating a commitment to the Kingdom’s automotive sector.
2. ACWA Power’s Projects: continued expansion of ACWA Power’s renewable energy portfolio with several large-scale solar and wind projects, attracting both domestic and international investment.
3. Blackstone’s Infrastructure Investments: Blackstone’s increased investments in Saudi Arabian infrastructure, including logistics and data centers, signaling confidence in the Kingdom’s long-term growth potential.
4. Tourism Infrastructure Funding: Significant funding allocated to the development of hotels, resorts, and entertainment facilities within the Red Sea Project and NEOM.

Vision 2030: The Catalyst for FDI

Saudi Arabia’s Vision 2030 is the primary driver behind the surge in FDI. The plan’s key initiatives are designed to create a more attractive investment climate:

Economic Diversification: reducing dependence on oil revenues by developing new industries and sectors.

Regulatory Reforms: Streamlining business regulations, improving transparency, and reducing bureaucratic hurdles for foreign investors. The Saudi Arabian investment authority plays a key role in this.

Privatization Program: Privatizing state-owned enterprises to attract private sector investment and improve efficiency.

Infrastructure Development: Investing heavily in infrastructure projects, including transportation, logistics, and digital infrastructure.

Special Economic Zones (SEZs): Establishing SEZs with attractive incentives,such as tax breaks and streamlined regulations,to attract foreign investment in specific sectors.

Benefits of Increased FDI for Saudi Arabia

The influx of FDI offers numerous benefits to the Saudi Arabian economy:

Economic Growth: FDI contributes directly to GDP growth and economic diversification.

Job Creation: New investments create employment opportunities for Saudi nationals.

Technology Transfer: FDI facilitates the transfer of technology and expertise, enhancing the Kingdom’s innovation capabilities.

Increased Competitiveness: Foreign investment promotes competition and efficiency in the domestic market.

Balance of Payments Betterment: FDI inflows help to improve the Kingdom’s balance of payments.

Navigating the Saudi arabian Investment Landscape: practical Tips

For investors considering opportunities in Saudi Arabia, here are some practical tips:

Partner with Local Experts: Collaborating with local partners who understand the business habitat and regulatory landscape is crucial.

Due Diligence: Conduct thorough due diligence on potential investments and partners.

Understand Regulatory requirements: Familiarize yourself with the Kingdom’s investment regulations and procedures.

Leverage Government Incentives: Take advantage of the various incentives offered by the Saudi government to attract foreign investment.

Focus on Vision 2030 Sectors: Prioritize investments in sectors aligned with Vision 2030’s goals, such as renewable energy, tourism, and technology.

* Consider the evolving legal framework: Stay updated on changes to Saudi arabia company law and investment regulations.

Case Study: The NEOM Project and FDI Attraction

The NEOM project, a futuristic city being built in northwestern Saudi Arabia, serves as a prime example of