Developments in Foreign Direct Investment in Saudi Arabia: Leading Figures and Sectors
Saudi Arabia showed remarkable performance in foreign direct investment during the first quarter of 2025. The net inflow of foreign direct investment (FDI) reached
SAR 22.2 billion, marking a 44% increase compared to the first quarter of 2024, which recorded SAR 15.5 billion. However, this figure represents a 7% decrease compared to the fourth quarter of 2024, which recorded SAR 24.0 billion.
The total inflow of FDI into the Kingdom was about SAR 24.0 billion in Q1 2025 , a 24% growth compared to Q1 2024. As for FDI outflows, they amounted to SAR 1.8 billion in Q1 2025 , a 54% decrease compared to Q1 2024.
New Projects and Capital Inflows in H1 2025
In the first half of 2025, Saudi Arabia attracted
203 new greenfield FDI projects, with total capital inflows reaching USD 9.34 billion. This number represents a 30.1% increase in the number of projects and a 1.7% growth in capital investment compared to the first half of 2024.
Riyadh emerged as the top destination for these investments, attracting 100 projects with capital inflows of USD 2.30 billion. Dammam secured 21 projects worth USD 1.28 billion, and Jeddah attracted 13 projects valued at USD 1.22 billion.
International Contributions and Leading Sectors
The
United States led the contributing countries to greenfield FDI projects, being the source of 61 projects totaling USD 2.70 billion.
Regarding sectors, the
business services sector topped the list with 55 projects, followed by the software and IT services sector with 35 projects, and the transportation and warehousing sector with 14 projects.
In terms of the financial value of investments, the
communications sector attracted the highest capital inflow at USD 1.92 billion , largely driven by Equinix's USD 1 billion data center investment.
Manufacturing activities accounted for 38% of total FDI inflows, with a total of USD 3.5 billion across 26 projects.
Regional Headquarters and Localization Efforts
The Kingdom's efforts have contributed to strengthening its position as a global business hub by attracting 25 new foreign firms to open their regional headquarters in the country. This growth is supported by the government-backed Riyadh regional headquarters program, which offers attractive incentives such as a 30-year corporate income tax exemption. According to the Saudi Press Agency, around
600 international companies, including Northern Trust, IHG Hotels and Resorts, and Deloitte, have established bases in the Kingdom since 2021.
Sources:
General Authority for Statistics: The source for data on the net inflow of foreign direct investment in the first quarter of 2025.
Saudi Press Agency (SPA): The source for data on the number of international companies that have established regional headquarters in the Kingdom since 2021.
Emirates NBD: The source for data on greenfield foreign direct investment projects in the first half of 2025.
