Saudi Arabia has recently released detailed foreign direct investment (FDI) statistics for the year 2023, utilizing the new methodology outlined in the Balance of Payments Manual (BPM6) by the International Monetary Fund (IMF). The latest data indicates that FDI performance has exceeded the targets set by the National Investment Strategy (NIS), with FDI inflow reaching SR96 billion ($25.5 billion) in 2023, surpassing the NIS target of SR83 billion ($22 billion) by 16%. FDI inflow constituted 2.4% of the Kingdom’s GDP, achieving the NIS target. FDI stock in the Kingdom saw a significant increase of 13% in 2023, reaching approximately SR900 billion ($240 billion). Saudi Arabia ranked 11th in terms of FDI net inflow within the G20, and achieved the second highest growth rate in FDI net inflow and the fourth highest growth rate in FDI stock for the year.
The manufacturing sector emerged as the leading area for FDI stock, inflow, and net inflow in Saudi Arabia, indicating a strong interest from foreign investors. The United States was the top country by ultimate controlling parent (UCP) for FDI stock, contributing 23% of the total FDI stock in the Kingdom, with an investment of SR202 billion ($54 billion). The United Arab Emirates ranked first in terms of FDI inflow, investing SR13 billion ($3 billion), accounting for 14% of the total FDI in the Kingdom. Since the launch of Vision 2030 in 2016, key FDI indicators in Saudi Arabia have shown significant improvement, with FDI inflow nearly tripling and averaging SR112 billion ($30 billion) over the last three years, compared to an average of SR43 billion ($11.5 billion) from 2013 to 2015.
The data collected through a comprehensive analysis of all licensed international investors in the Kingdom was categorized by economic activity, investor country, and administrative region, ensuring that investors have access to high-level information to guide their investment decisions. The consistent surpassing of targets set by the NIS in 2021, 2022, and 2023 showcases the success of Saudi Arabia’s efforts to attract foreign investment. With the implementation of the new methodology recommended by the IMF, the Kingdom is able to provide accurate and transparent FDI statistics to investors, highlighting the growth and potential opportunities in the Saudi market.
In 2023, Saudi Arabia’s FDI performance exceeded expectations, with FDI inflow surpassing the NIS target by 16%, reaching SR96 billion ($25.5 billion). The Kingdom ranked 11th in the G20 for FDI net inflow and 16th for cumulative FDI stock, demonstrating a strong position in attracting foreign investment. The significant increase in total FDI stock in the Kingdom, rising by 13% to approximately SR900 billion ($240 billion), highlights the growing interest and confidence of international investors in the Saudi market.
The manufacturing sector emerged as a key area for FDI in Saudi Arabia, leading in FDI stock, inflow, and net inflow. The United States and the United Arab Emirates were among the top countries investing in the Kingdom, contributing significantly to the total FDI stock and inflow. With the steady growth in FDI indicators since the announcement of Vision 2030, Saudi Arabia has proven to be an attractive destination for foreign investment, with the NIS consistently surpassing its targets in recent years.
By providing detailed and accurate FDI statistics through the new BPM6 methodology recommended by the IMF, Saudi Arabia is able to offer transparency and reliability to international investors. The data categorized by economic activity, investor country, and region allows investors to make informed decisions and explore opportunities in the Kingdom. The success of Saudi Arabia’s FDI performance in 2023 reflects the country’s commitment to attracting foreign investment and driving economic growth in line with Vision 2030 goals.
