Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net foreign direct investment (FDI) in Q1 2025, marking a 44% year-on-year surge, according to the General Authority for Statistics (GASTAT). The jump reflects rising inflows and a sharp drop in capital outflows, highlighting investor confidence in the Kingdom’s transformation agenda.
The latest figures compare with SR15.5 billion recorded in Q1 2024, though they show a 7% dip from the SR24 billion netted in Q4 2024. Gross inflows climbed to SR24 billion, up 24% from a year earlier, but slightly below the SR25.6 billion in the prior quarter.
Net FDI, which subtracts outflows such as dividends and repayments, is considered a better gauge of sustainable foreign investment. Outflows in Q1 2025 fell 54% year-on-year to SR1.8 billion, from SR3.9 billion a year earlier, despite a modest 7% rise from Q4 2024.
The results coincide with Saudi Arabia’s record climb to 13th in Kearney’s 2025 Foreign Direct Investment Confidence Index, maintaining its rank as the third most attractive emerging market globally.
Multinationals are fueling the momentum: Dell Technologies recently joined global firms like PepsiCo, Schneider Electric, Morgan Stanley, PwC, and Deloitte in setting up or expanding regional headquarters in Riyadh to capitalize on the Kingdom’s ambitious $1.1 trillion giga-project pipeline.
GASTAT’s report underscores Saudi Arabia’s resilience despite global headwinds. UNCTAD data shows global FDI into Saudi Arabia fell 31% to $15.73 billion in 2024, while outbound flows rose 27.1% to $22.04 billion, reflecting wider investor caution amid geopolitical uncertainties.
S&P Global this month warned that FDI into Gulf Cooperation Council countries could slow further in 2025 due to lower oil prices and a slower pace of economic diversification, though Saudi Arabia’s proactive reforms continue to set it apart.