Saudi Arabia attracted $5.9 billion (SAR 22.2 billion) in net foreign direct investment (FDI) in the first quarter of 2025, marking a 44% jump compared to the same period last year, official data showed.

Foreign direct investment

However, net FDI declined by 7% compared to the previous quarter, according to the General Authority for Statistics (GASTAT).

Saudi Arabia’s outward FDI flows amounted to approximately $480 million (SAR 1.8 billion) during the first quarter of 2025, a 54% plunge year-on-year.

However, the outward inflow for the quarter showed a 7% rise compared to the previous quarter.

The country’s gross inward FDI flows reached around $6.4 billion (SAR 24 billion) in the first quarter of 2025, registering a 24% increase compared to the same quarter last year, when the inflows were approximately $5.2 billion (SAR 19.4 billion), the GASTAT report showed.

However, this also represents a 6% drop compared to the previous quarter of the same year.

Foreign direct investment in Saudi Arabia typically involves a foreign investor—alone or with other foreign investors—holding at least 10% of a company’s voting shares.

Economic growth

The International Monetary Fund (IMF) projected Saudi Arabia’s gross domestic product (GDP) growth to accelerate to 3.5% in 2025 and 3.9% in 2026, after growing just 1.8% in 2024 due to OPEC+ oil production cuts. The fund lowered its forecast for the country’s non-oil sector for this year to 3.4%, down from 4.2% in 2024, reflecting a slowdown despite continued Vision 2030 investments.

Saudi Arabia’s oil sector shrank 4.4% last year, but data from the first quarter of 2025 showed non-oil activity expanding 4.9% year-on-year.

The Saudi government has been investing heavily to diversify its economy away from hydrocarbons and strengthen its private sector in line with its Vision 2030.

Source: Forbes Middle East.