Saudi Arabia's FDI Hits Three-Year Low, Falls 19%

Saudi Arabia's stock market has experienced mixed performance, with the Tadawul All Share Index seeing recent fluctuations due to global economic pressures such as China's slowing manufacturing and US-China trade tensions. Despite broader market volatility, certain companies like Jamjoom Pharmaceuticals and Umm Al Qura for Development and Construction Company have achieved significant gains, driven by strategic expansions and sector-specific growth. However, foreign direct investment (FDI) in Saudi Arabia has declined for a third consecutive year, dropping 19% to its lowest level since 2020, indicating challenges in attracting foreign capital amid tighter global liquidity and lower oil prices. The government remains committed to its economic diversification goals, even if it means running a moderate deficit to support long-term investments. While some sectors and individual firms continue to thrive, overall market sentiment is tempered by macroeconomic headwinds and reduced FDI inflows. This environment underscores both the resilience of innovative companies and the broader fiscal and investment challenges facing the kingdom.