Saudi Arabia posts record growth in foreign investment inflows
Saudi Arabia has achieved significant gains in attracting foreign direct investment, driven by Vision 2030 reforms that have strengthened its global economic standing.
Key Takeaways
AISaudi Arabia recorded remarkable growth in foreign direct investment in 2025, with inflows rising by 14% to reach 136 billion riyals (SAR), up from 119 billion riyals in 2024. This marks a fivefold increase compared to 2017. By the end of 2025, the total stock of foreign direct investment stood at 1.1 trillion riyals, representing a 13% rise from the previous year and a 120% increase since 2017.
This progress comes as part of the Kingdom’s ongoing efforts to leverage its strengths and strategic location, underpinned by the launch of Vision 2030. The initiative aims to grow and diversify the economy, enhance sustainability, develop infrastructure, and improve quality of life.
National strategies to boost investment
Saudi Arabia launched its National Investment Strategy in 2021 as a key enabler of Vision 2030, focusing on improving investment efficiency and stimulating growth in priority sectors. The strategy aims to increase the private sector’s contribution to GDP to 65%, raise foreign direct investment to 5.7% of GDP, and boost non-oil exports to 50% of non-oil GDP.
The third phase of Vision 2030 implementation (2026–2030) has seen the rollout of sectoral and regional national strategies to ensure lasting impact beyond 2030. The "Invest Saudi" platform has also been developed to market investment opportunities and enhance the competitiveness of the investment environment.
Global progress and growing investor confidence
According to the World Investment Report by the United Nations Conference on Trade and Development (UNCTAD), Saudi Arabia advanced to 13th place globally among the largest recipients of foreign direct investment in 2025, up from 17th in 2024. Net FDI inflows reached 122 billion riyals in 2025, compared to 80 billion riyals in 2024, reflecting growth of nearly 53%.
The number of licenses granted to global companies establishing regional headquarters in the Kingdom exceeded 700, with these firms operating across diverse regions worldwide. Their presence has supported local industries as well as research, development, and innovation centers.
Private investment and emerging markets
A report by Saudi Venture Capital Company (SVC) showed that foreign private investment inflows into Saudi private markets reached 20 billion riyals ($5.3 billion) in 2025, accounting for 60% of total private investments. Since 2019, more than 40 billion riyals in foreign private investment has flowed into Saudi private markets, reflecting growing international investor confidence in the Kingdom’s long-term prospects.
Saudi Arabia has maintained its lead in the Middle East and North Africa’s venture capital market for the third consecutive year. The number of foreign investors expanded from 28 in 2019 to 148 in 2025, with international participation now spanning North America, Europe, and Southeast Asia.
Economic reforms and investor support
Noura bint Mohammed Al-Sarhan, CEO of Saudi Venture Capital Company, said the growth of private foreign investment in the Kingdom has become more balanced, with an increasing number of deals and greater sector diversity. She attributed this to economic reforms, improved investment regulations, and expanded capital markets. Al-Sarhan added that the company continues to take on early-stage risk and promote foreign capital flows to Saudi companies through investments in various funds.
Meanwhile, Abdullah bin Ibrahim Al-Khuraif, First Vice Chairman of the Riyadh Chamber of Commerce, stated that Saudi Arabia has established itself as a leading investment destination regionally and globally, supported by economic transformation and legislative reforms that have strengthened the business environment and boosted the competitiveness of the national economy.
