Saudi Arabia announced that foreign direct investment (FDI) inflow in 2023 reached SAR 96 billion ($25.5 billion), surpassing the National Investment Strategy (NIS) target of SAR 83 billion ($22 billion) by 16%, according to new data released based on the Balance of Payments Manual (BPM6) from the IMF. The FDI inflow also accounted for 2.4% of GDP and grew by 50% compared to 2022, excluding the impact of the 2022 Aramco pipeline deal.
FDI stock in Saudi Arabia increased by 13% year-on-year, amounting to SAR 900 billion ($240 billion) in 2023. The data highlights Saudi Arabia’s position as an attractive investment destination, ranking 11th globally in FDI net inflow and 16th in cumulative FDI stock among G20 countries in 2023. In terms of FDI net inflow growth rate, the Kingdom ranked second, and fourth in FDI stock growth rate.
Manufacturing emerged as the top sector for FDI in 2023. Among countries, the US led in FDI stock with SAR 202 billion ($54 billion), while the UAE ranked first in FDI inflow, contributing SAR 13 billion ($3 billion), 14% of the total.
Since the launch of Vision 2030 in 2016, key FDI indicators have improved significantly. FDI inflow nearly tripled, with an average of SAR 112 billion ($30 billion) from 2021-2023, compared to SAR 43 billion ($11.5 billion) between 2013 and 2015. From 2017 to 2023, FDI inflows increased by 240%, while FDI outflows declined by 60%.
“These detailed numbers show that Vision 2030 and the National Investment Strategy are succeeding in attracting FDI across the country from numerous source countries and into a wide range of sectors,” said Minister of Investment Eng. Khalid A. Al-Falih.
Al-Falih noted the positive impact of FDI on the Saudi market: “It is positive shifts like this in FDI that I expect we will continue to see as more investors enter the fast-growing Saudi market to take advantage of our political stability, long-term economic vision, market size, policy certainty, strong economic, fiscal and monetary fundamentals and strategic position, which provide an excellent platform to access growth opportunities across the Middle East and beyond.”
