Foreign direct investment in Saudi Arabia grows to $215bn

RIYADH: The pro-investment measures introduced by Saudi Arabia in recent years include the introduction of Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law and Law for Special Economic Zones (SEZs).

The investment environment in Saudi Arabia has, in the recent times, attracted increased foreign investments into the Kingdom. The foreign direct investment (FDI) increased by 61 per cent between 2017 and 2023, reaching almost $215 billion (Rs18,03,850 crore) in 2023.

FDI inflow rate has surged by 158 per cent, jumping from $7.5 billion in 2017 to $19.3 billion in 2023, according to Saudi Press Agency (SPA).

Investment-friendly reforms

Khalid Al Falih, Saudi Minister of Investments, said the investor-friendly reforms have helped drive rapid investment growth, with gross fixed capital formation in the Kingdom increasing by 74 per cent from 2017 to nearly $300 billion in 2023, according to a SPA report.

Investment destination

The minister added, “The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a premier global investment destination.”

The policy direction outlined in Vision 2030 allows investors to invest with certainty and to grow with confidence, at a time when many other markets are experiencing considerable volatility.

FDI growth

Earlier this year, at the World Economic Forum (WEF) 2024, Al Falih stated that the Gulf Cooperation Council (GCC) was drawing FDI at more than double the average global rate, a trend he anticipated will continue to grow, particularly in Saudi Arabia.

.Addressing the digital transition in the region, Al Falih noted that factors like connectivity and speed were key in attracting investors to Saudi Arabia.