Saudi Arabia’s FDI inflows increased by 24% year-on-year in Q1, but at $6.4bn they were still down on the same period in 2023. Increased FDI is a core pillar of the kingdom’s Vision 2030 economic reform strategy, with Saudi Arabia looking overseas to finance its ambitious capital-intensive projects. The importance of FDI has only increased as oil revenues have dwindled amid falling prices (MEES, 27 June).
As a result, the struggles to achieve sustained increases in FDI inflows are especially problematic. Inflows dropped to a four year low of $20.7bn in 2024, and while they have started the year on course for an increase this is still off the pace required to achieve Riyadh’s own targets. Saudi Arabia targets $37bn of FDI inflows this year, which will require average inflows of $10.3bn/quarter for the remainder of the year. (CONTINUED - 507 WORDS)
