https://arab.news/j3fyt
RIYADH: ’s foreign direct investment net inflows climbed 14.5 percent year on year to SR22.8 billion ($6.1 billion) in the second quarter, signaling a steady appetite for the Kingdom’s reform-driven economy.
The figure, released by the General Authority for Statistics, compared with SR19.9 billion a year earlier.
On a quarterly basis, net inflows dipped 3.5 percent from the SR23.7 billion recorded in the first three months of 2025, underscoring lingering global headwinds that continue to weigh on cross-border capital flows.
The increase in net inflows reflects a broader effort by to attract long-term foreign capital as part of its Vision 2030 strategy, which aims to diversify the economy beyond oil revenues.
The Kingdom has been implementing regulatory reforms, opening up sectors such as tourism, renewable energy, and technology to international investors, and launching initiatives through the Ministry of Investment to position as a regional hub for capital flows.
In its release, GASTAT stated: “The volume of inflows amounted to about SR24.9 billion during the second quarter of 2025. It achieved a decrease of 11.5 percent compared to the second quarter of 2024, which was approximately SR28.2 billion.”
It added: “While it recorded a decrease of 3.5 percent compared to the first quarter of 2025, which recorded SR26 billion.”
Meanwhile, FDI outflows dropped sharply to SR2.1 billion, down 74.5 percent from SR8.2 billion a year earlier and 10.5 percent lower than SR2.3 billion in the previous quarter.
While continues to draw large-scale strategic investments, maintaining momentum will depend on investor confidence in regulatory stability and the pace of economic diversification projects.
In the Gulf region, the UAE remains a leading competitor for FDI. In 2024, UAE inflows reached $45.6 billion, marking a 48 percent year-on-year increase and earning the country a top-10 global ranking in FDI recipients.
Dubai, in particular, saw a 33 percent increase in FDI capital in 2024, attracting a record 1,117 greenfield projects.
GASTAT defines foreign direct investment as cross-border transactions in which a foreign investor holds at least 10 percent of the voting power in a Saudi company.
The net inflow figure represents the balance between total inflows and outflows, reflecting the extent of retained foreign investment in the Kingdom.
has recently stepped up efforts to attract foreign capital through regulatory and market reforms.
In June, the government issued 83 new industrial licenses and launched 58 factories worth SR 2.85 billion.
Recent media reports also highlight that authorities are considering easing the 49-percent cap on foreign ownership in listed companies to boost equity market inflows, although no official announcements have been made.
In parallel, global firms such as Macquarie Asset Management have signed preliminary agreements to establish a presence in the Kingdom, targeting infrastructure and energy sectors.