Saudi Arabia Attracts $65.1 Billion in Foreign Direct Investment Post-Pandemic, UN Report Finds
Saudi Arabia has emerged as a significant hub for foreign direct investment (FDI) in the three years following the pandemic, amassing $65.1 billion in FDI by 2023. This milestone places the Kingdom among the leading FDI recipients in West Asia, according to a recent report.
The "World Investment Report" by the UN Conference on Trade and Development (UNCTAD) reveals that Saudi Arabia’s FDI outflows over the same period amounted to $73.1 billion, with $16 billion recorded in 2023 alone. These figures rank the Kingdom 16th among the top 20 global economies for FDI outflows.
Reforms Drive Investment Growth
Saudi Arabia has implemented comprehensive legal, economic, and social reforms to boost foreign direct investment as part of its National Investment Strategy (NIS) and Vision 2030 objectives. Launched in 2021, the NIS aims to develop detailed investment strategies across diverse sectors, including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare.
The strategic goal is to elevate annual FDI inflows to over $103 billion and stimulate domestic investment to exceed $453 billion by 2030. The UN report noted a 55 percent annual rise in the value of international project finance deals in 2023, reaching $22 billion. Additionally, the Kingdom saw 19 such deals, reflecting a 90 percent increase compared to the previous year. In the same year, Saudi Arabia recorded 389 announced greenfield projects totaling $29 billion, marking a 108 percent annual increase in value.
Global FDI Landscape
The global landscape for foreign direct investment experienced a slight decline of 2 percent in 2023, bringing the total to $1.3 trillion. The report attributes this decline to significant financial flows through certain European conduit economies.
For more detailed insights, refer to the full "World Investment Report" by UNCTAD.
Source: UN Conference on Trade and Development (UNCTAD)
