Saudi Arabia's FDI Inflows Decline in Q3 2024

Saudi Arabia's foreign direct investment (FDI) inflows fell 21% year-on-year to SAR 18 billion ($4.8 billion) in Q3 2024, reflecting ongoing challenges in attracting external capital amidst global economic uncertainties. This marks an 8% decrease from the previous quarter's inflows of SAR 19.4 billion. Despite a significant 37% increase in net FDI compared to Q2 2024, driven by a sharp decline in investment outflows, year-on-year figures reveal a 24% drop from SAR 21.1 billion in Q3 2023. Total FDI inflows for the first nine months of 2024 stand at SAR 54.4 billion, falling short of the government's target of SAR 108 billion for the year. Experts suggest that while immediate hesitations may exist, Saudi Arabia's long-term investment appeal remains strong due to its strategic initiatives under Vision 2030. Continued structural reforms are deemed essential to bolster the kingdom's competitive position in the investment landscape.