Saudi FDI net inflows jump 44% in Q1 to $5.9bn
RIYADH: Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net foreign direct investment in the first quarter of 2025, up 44 percent year on year, driven by rising inflows and sharply lower capital outflows.
According to figures released by the General Authority for Statistics, this compares to SR15.5 billion during the same period last year. The figure, however, marked a 7 percent drop from the final quarter of 2024, when inflows totaled SR24.0 billion.
Gross inflows — the total foreign capital entering the Kingdom — stood at SR24 billion, up 24 percent from SR19.4 billion in the first quarter of 2024, but down 6 percent from the SR25.6 billion recorded in the preceding quarter.
Net FDI reflects the actual retained investment after subtracting outflows such as dividends, loan repayments, or capital exits — making it a more accurate indicator of lasting foreign capital in the economy.
The FDI boost coincides with Saudi Arabia's growing appeal among global investors. In April, the Kingdom climbed to a record 13th place in Kearney's 2025 Foreign Direct Investment Confidence Index while maintaining its rank as the third most attractive emerging market, underscoring strong investor confidence.
In its latest release, GASTAT stated: 'The volume of outflows amounted to about SAR 1.8 billion during Q1 of 2025. It achieved a decrease of 54% compared to Q1 of 2024, where the volume of outflows reached SAR 3.9 billion.'
The report noted that this represented a 7 percent increase from the fourth quarter of 2024, when outflows stood at SR1.7 billion.
The narrowing gap between inbound and outbound foreign capital underscores the resilience of the Kingdom's investment environment amid ongoing economic transformation efforts.
It also reflects a growing trend of multinational companies establishing regional headquarters in the Kingdom. Under new localization rules linked to government contracts, several global firms have set up or expanded their presence in Riyadh.
In March, Dell Technologies became one of the latest tech giants to open a regional office in the Saudi capital, joining companies such as PepsiCo, Schneider Electric, Morgan Stanley, PwC, and Deloitte — all of which have ramped up operations to tap into the Kingdom's rapidly evolving market and $1.1 trillion giga-project pipeline.
The Kingdom's performance comes against a backdrop of global declines in foreign direct investment.
According to the UN Conference on Trade and Development, inward FDI inflows in Saudi Arabia fell 31 percent in 2024 to $15.73 billion, while outflows rose 27.1 percent to $22.04 billion.
The report attributed the downturn to persistent trade tensions, geopolitical uncertainty, and weakening investor sentiment worldwide.
Earlier this month, S&P Global said it expects FDI into Gulf Cooperation Council countries to slow further in 2025, citing lower oil prices and a more gradual rollout of economic diversification plans across the region.
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