Saudi Arabia’s Foreign Direct Investment Surges in Q4 2024, Reaching Highest Level of the Year

Foreign direct investment (FDI) into Saudi Arabia climbed to SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, marking a 26 percent increase from the previous quarter and the highest quarterly figure of the year, according to new data released by the General Authority for Statistics (GASTAT).

The fourth-quarter total surpassed earlier figures from 2024, including SR15.5 billion in Q1, SR19 billion in Q2, and SR17.5 billion in Q3, signaling growing investor confidence as the Kingdom pushes ahead with its ambitious economic diversification goals under Vision 2030.

Saudi Arabia has set a target of attracting $100 billion in FDI annually by the end of the decade as part of its broader strategy to reduce its reliance on oil revenues and develop sectors such as tourism, technology, logistics, and renewable energy.

GASTAT also reported that FDI inflows reached SR23.8 billion in the last quarter of the year, a 17 percent increase compared to Q3. Outflows, on the other hand, fell to SR1.8 billion—down 39 percent from the previous quarter—contributing to the strong net FDI position.

Despite the quarter-on-quarter growth, the report showed a decline when compared to the same period in 2023. Net FDI in Q4 2024 was 13 percent lower than the SR25.5 billion recorded in the final quarter of the previous year. Inflows were down 11 percent year-on-year, while outflows rose by 20 percent compared to Q4 2023.

The release of these figures follows Saudi Arabia’s climb to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April. The Kingdom moved up one spot from the previous year and maintained its position as the third-most attractive emerging market worldwide, underscoring growing global interest in its economic reforms.

Kearney attributed the Kingdom’s improved ranking to its “bold, reform-driven approach” aimed at creating a globally competitive and future-ready economy.

In support of its FDI ambitions, Saudi Arabia approved an updated investment law in October 2024, aimed at enhancing transparency and simplifying the investment process. The new legislation promises stronger protections for investors, including enforcement of property rights, fair treatment, and streamlined fund transfers.

With continued policy reforms and a firm commitment to economic diversification, the Kingdom appears poised to sustain its momentum in attracting foreign investment into 2025 and beyond.