Saudi Arabia FDI Inflows Rise 24 Percent to $31.8 Billion in 2024

Saudi Arabia experienced a significant 24% increase in foreign direct investment (FDI) inflows in 2024, reaching approximately $31.7 billion, aligning with its Vision 2030 targets and marking the fourth consecutive year the Kingdom has exceeded its FDI goals. The manufacturing sector was the largest recipient, followed by wholesale and retail trade, construction, and financial activities, highlighting diversification beyond oil dependency. The Kingdom’s National Investment Strategy, launched by Crown Prince Mohammed bin Salman in 2021, has been instrumental in this growth, with annual FDI inflows more than quadrupling since 2017 and cumulative FDI stock nearly doubling to around $260 billion. Private-sector investment accounted for about 76% of total investment, and the number of multinational companies relocating regional headquarters to Saudi Arabia increased to 660 by 2024, establishing the country as a leading regional hub. Despite the steady decline in oil prices and rising government debt issuance to support Vision 2030 projects, Saudi Arabia’s ability to attract foreign capital demonstrates investor confidence in its economic transformation and diversification efforts. Non-oil FDI flows represented approximately 90% of total inflows, underscoring the successful shift towards a more diverse economy.