Saudi Gazette report
RIYADH — Saudi Arabia’s ongoing efforts to draw overseas direct funding (FDI) had been mirrored within the optimistic outcomes for 2024, with inflows growing by 24.2 p.c to achieve SR119.2 billion. Cumulative FDI inventory practically doubled to SR977.3 billion final 12 months, in comparison with SR501.8 billion in 2017.
This efficiency end result is a part of the outcomes, which had been compiled following the publication of preliminary quarterly FDI estimates. These achievements spotlight the effectiveness of Imaginative and prescient 2030 packages, nationwide and sectoral methods, and main initiatives, foremost amongst them is the Nationwide Funding Technique, launched by Crown Prince and Prime Minister Mohammed bin Salman in 2021.
For the fourth consecutive 12 months, the technique’s efficiency indicators have exceeded all targets, overlaying Gross Mounted Capital Formation, FDI, and the relocation of regional headquarters of worldwide firms to the Kingdom.
Gross Mounted Capital Formation achieved a historic file in 2024, exceeding SR1.3 trillion, surpassing its goal by 38 p.c. Personal-sector funding, together with non-governmental and non-oil, represented round 76 p.c of the full, underscoring the dynamism of the native enterprise surroundings.
Since its launch in 2016, Imaginative and prescient 2030 has pushed a notable improve in overseas funding. FDI flows reached SR119.2 billion, exceeding the 2024 goal of SR109 billion by 39 p.c. Since 2017, annual FDI inflows have multiplied greater than fourfold, rising from SR 28.1 billion to present ranges.
The Kingdom’s reforms have fostered a aggressive and engaging surroundings, mirrored within the issuance of over 50,000 overseas funding licenses throughout numerous sectors. The variety of regional headquarters relocated to the Kingdom additionally soared sharply, reaching 660 firms by 2024—a key milestone in positioning Saudi Arabia as a number one regional hub.
This represents a major milestone in Saudi Arabia’s financial transformation below Imaginative and prescient 2030, demonstrating robust investor confidence within the Kingdom’s legislative and financial reforms.
On this context, Minister of Funding Khalid Al-Falih mentioned: “The outcomes of overseas direct funding in 2024 come amid world financial challenges and a slowdown in worldwide flows. This success demonstrates the Kingdom’s potential to navigate financial and funding challenges via an formidable imaginative and prescient geared toward diversifying the financial system, fostering a sexy funding surroundings, and creating high-quality alternatives.”
He famous that this knowledge proves the effectiveness of Imaginative and prescient 2030 and the Nationwide Funding Technique in attracting numerous FDI from numerous nations. The outcomes additionally verify the Kingdom’s dedication to financial diversification and sustainable growth. For the primary time, non-oil FDI flows accounted for about 90 p.c of whole flows in 2024, with the proportion of non-oil FDI in non-oil GDP reaching a globally passable 4.2 p.c.
Al-Falih remarked: “Because of the Kingdom’s financial power and impressive imaginative and prescient; overseas funding is anticipated to proceed flowing into the Saudi market, pushed by distinctive alternatives and the Kingdom’s strategic location as a gateway to the broader Center East. The continuing enhancement of the funding system, a key element of the Nationwide Funding Technique and its supporting sectoral methods, is essential for accelerating the expansion and financial diversification wanted to attain Imaginative and prescient 2030’s objectives.”
Saudi Arabia’s methodology aligns with the Stability of Funds Guide and the Worldwide Funding Place Guide issued by the Worldwide Financial Fund, guaranteeing consistency with main worldwide practices.