Saudi Arabia’s foreign direct investment surges to $65 billion post-pandemic

Dubai: Saudi Arabia receives $65.1 billion (Dh239 billion) in foreign direct investment (FDI) in the three years following the pandemic until 2023, establishing itself as one of the top recipients in West Asia.

The latest World Investment Report by the UN Conference on Trade and Development also shows that Saudi Arabia's FDI outflows reached $73.1 billion (Dh268 billion) during the same period, with $16 billion (Dh58.7 billion) recorded in the previous year alone. This places Saudi Arabia among the top 20 economies globally for FDI outflows, ranking sixteenth.

In line with the objectives outlined in the National Investment Strategy and the Saudi Vision 2030 targets, the country has implemented significant legal, economic, and social reforms to encourage foreign direct investment inflows.

The Saudi Vision 2030 is a programme launched by the government in 2016, with the main aim of diversifying its economy away from the oil sector. It has three main pillars - a vibrant society, a thriving economy, and an ambitious nation.

The National Investment Strategy, launched in 2021, aims to create comprehensive investment plans across sectors such as manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare. The strategy also seeks to increase annual FDI flows to over $103 billion (Dh378 billion) and boost annual domestic investment to more than $453 (Dh1.6 trillion) billion by 2030.

The UN report also highlights a 55 per cent annual increase in the value of international project finance deals in Saudi Arabia in 2023, totaling $22 billion (Dh80.8 billion). Saudi saw 19 deals last year, marking a 90 per cent increase from the previous year.