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Saudi Arabia draws $5.9 billion in FDI in first quarter of 2025

Saudi Arabia’s Q1 2025 FDI rose 24%, with higher labour participation and lower unemployment rates.

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The Saudi General Authority for Statistics (GASTAT) reported on Sunday that Foreign Direct Investment (FDI) inflows reached SAR 22.2 billion ($5.9 billion) in Q1 2025, while the overall unemployment rate, including both Saudis and non-Saudis, stood at a low 2.8%.

The data showed that FDI inflows into Saudi Arabia reached SAR 24.0 billion (USD 6.4 billion) in Q1 2025, marking a 24% year-on-year increase compared to SAR 19.4 billion ($5.2 billion) in Q1 2024. However, this also represented a 6% decline from Q4 2024, when inflows stood at SAR 25.5 billion ($6.8 billion).

According to the Labour Market Statistics Bulletin for Q1 2025, Saudi Arabia’s total labour force participation rate reached 68.2%, with the participation rate among Saudis rising to 51.3%, up from the previous quarter.

Among Saudi males, labour force participation increased to 66.4%, while their unemployment rate fell to 4%.

The report also highlighted the impact of women’s empowerment initiatives, which have significantly boosted economic inclusion and contributed to sustainable development.

As a result, the labour force participation rate among Saudi females climbed to 36.3%, with their unemployment rate dropping to 10.5% compared to the previous quarter.

Among young Saudi women aged 15–24, the employment-to-population ratio rose to 14.6%, and their labour force participation rate increased to 18.4% in Q1 2025. In contrast, for young Saudi men in the same age group, the employment-to-population ratio declined to 29.2%, and labour force participation fell to 33%. However, their unemployment rate improved, dropping to 11.6% compared to Q4 2024.

These trends underscore the positive impact of evolving labour market policies in Saudi Arabia, reflecting the Kingdom’s ongoing efforts to enhance job opportunities, diversify participation, and strengthen its economic appeal.