Published by The General Authority for Statistics today released its annual statistical bulletin on foreign direct investment in the Kingdom for the year 2023. According to the bulletin’s findings, the total stock of foreign direct investment (897,347) billion Saudi riyals at the end of 2023, an increase of 13.4 % compared to the end of 2022, when it stood at 791 billion Saudi riyals.

The results revealed that total inflows of foreign direct investment into the Kingdom (95,983) million Saudi riyals in 2023, a decrease of 19 % in 2023 compared to 2022, which stood at 96 billion Saudi riyals in 2023.

Total outflows of foreign direct investment from the Kingdom amounted to (10,470) million Saudi riyals in 2023. This represents a decrease of 44% compared to 2022.

It also showed that net foreign direct investment flows in the Kingdom amounted to (513.85) million Saudi riyals in 2023.

Manufacturing activities accounted for the largest share of the total FDI stock at the end of 2023, amounting to 259 billion Saudi riyals and representing 29% of the total stock, followed by wholesale and retail trade and the repair of motor vehicles and motorcycles, with a total of 135 billion Saudi riyals and a share of 15%, and then financial and insurance activities, with a balance of 112 billion Saudi riyals and a share of 12%.

It should be noted that foreign direct investment reflects a long-term relationship and sustained interest by economic entities resident in an economy other than the Saudi economy. This means that a foreign investor, individually—or a group of foreign investors — of 10% or more of the voting power of shareholder rights.

According to foreign direct investment statistics published by the Ministry of Investment and the General Authority for Statistics, key foreign direct investment indicators have seen a notable increase since the launch of “Saudi Vision 2030” and its various strategic plans, including the National Investment Strategy, with the National Investment Strategy exceeding its ambitious targets for the years 2021, 2022, and 2023.
The key findings of the 2023 foreign direct investment indicators are as follows:
– Total foreign direct investment (FDI) inflows in 2023 reached approximately 96 billion riyals, exceeding the National Investment Strategy’s target of 83 billion riyals by 16%.
– The ratio of foreign direct investment inflows to gross domestic product (GDP) reached 2.4% in 2023, meeting the target set in the National Investment Strategy.
– Foreign direct investment inflows grew by approximately 50% between 2022 and 2023 (excluding the one-time Aramco transaction).
– The stock of foreign direct investment grew in 2023 by 13% compared to 2022, reaching approximately 900 billion riyals.
The published statistics confirmed the effectiveness of the Vision programs, various sectoral strategies, and ambitious initiatives, including the National Investment Strategy, which aims to enhance the attractiveness of the Kingdom’s investment environment and attract more high-quality foreign investment from around the world. The Kingdom has achieved leading positions among G20 countries, ranking 11th in terms of net foreign direct investment (FDI) flows and 16th in terms of FDI stock for the year 2023, The Kingdom also ranked second in terms of the growth rate of net foreign direct investment flows and fourth in terms of the growth rate of the foreign direct investment stock for the same year.
Looking at FDI performance by economic sector for 2023, according to statistics published by the Ministry of Investment, the manufacturing sector ranked first among economic activities in terms of FDI stock at the end of 2023, and it also ranked first in terms of inflows and net inflows for the same year.
As for countries investing in the Kingdom based on the nationality of the controlling parent company, the United States topped the global list in terms of foreign direct investment (FDI) stock for 2023, with 202 billion riyals—equivalent to 23% of the Kingdom’s total FDI stock, while the United Arab Emirates ranked first globally in terms of foreign direct investment inflows, with inflows estimated at approximately 13 billion riyals, accounting for about 14% of the Kingdom’s total inflows for the same year.
Since the announcement of “Saudi Vision 2030” in 2016, foreign investment in the Kingdom has seen remarkable growth, as indicated by the following foreign direct investment figures for 2023:
– Comparing the three-year average prior to the launch of Vision 2030 (2013–2015), which stood at 43 billion riyals, with the average for the most recent three years (2021–2023), the average has risen to approximately 112 billion riyals, meaning that foreign direct investment inflows have nearly tripled.
-The value of FDI inflows increased by more than 240% in 2023 compared to 2017, rising from 28 billion riyals in 2017 to 96 billion riyals in 2023.
– Outflows of foreign direct investment decreased by approximately 60% in 2023 compared to 2017, from 24 billion riyals in 2017 to 10 billion riyals in 2023.
– The value of net foreign direct investment flows increased by more than 2000% in 2023 compared to 2017, from approximately 4 billion riyals in 2017 to 86 billion riyals in 2023.
– The foreign direct investment stock increased by approximately 80% in 2023, from 502 billion riyals in 2017 to approximately 900 billion riyals in 2023.
– The share of inward foreign direct investment flows in the total foreign direct investment stock rose from 6% in 2017 to 11% in 2023.
– The share of outbound foreign direct investment flows in the total foreign direct investment stock decreased from 5% in 2017 to 1% in 2023.
His Excellency the Minister of Investment, Engineer Khalid Al-Falih, explained that the foreign direct investment data for the Kingdom for the year 2023 convincingly reflects the success of the Kingdom’s Vision 2030 in diversifying and growing the economy, creating a world-class investment environment, and providing unprecedented opportunities for investors.
His Excellency added: “These detailed figures show that Saudi Vision 2030 and the National Investment Strategy (NIS) are succeeding in attracting foreign direct investment across the Kingdom to a wide range of economic activities and from various countries around the world.”
His Excellency noted: “As a result of the positive trends in foreign direct investment in the Kingdom, we expect to see more investors entering the Saudi market to capitalize on the size and resilience of the Kingdom’s economy and investment sector, the stability of its policies, its long-term economic vision, and its solid fiscal and monetary foundations, as well as its strategic location, which serves as a gateway to growth opportunities throughout the Middle East and beyond.”
His Excellency continued: “While there is still much work to be done, I am optimistic about the transformation we are witnessing in the Kingdom, which will continue at an accelerated pace, supported by sectoral strategies—including the National Investment Strategy—and the catalytic role played by the Public Investment Fund, as well as the Kingdom’s mega-projects.”