Saudi Arabia’s FDI grows to SAR 96B in 2023, exceeds target by 16%

The Kingdom of Saudi Arabia's flag

Foreign direct investment (FDI) inflows to Saudi Arabia reached SAR 96 billion in 2023, according to data by the Saudi Ministry of Investment.

FDI inflows declined by 19% year-on-year (YoY) compared to 2022, when they totaled SAR 119 billion, including a SAR 55 billion Aramco deal. Without the Aramco deal, the increase would have been around 50%.

In 2023, Saudi Arabia ranked 11th globally in net FDI inflows and 16th in FDI stock among G20 nations. The Kingdom also placed second in the growth rate of net FDI inflows and fourth in FDI stock growth, excluding the Aramco deal.

Saudi Arabia, in consultation with the International Monetary Fund, adopted a new methodology for calculating foreign direct investment statistics in October of last year.

This was achieved through cooperation between the Ministry of Investment, the General Authority for Statistics (GASTAT), and the Saudi Central Bank, adhering to the standards of the International Monetary Fund’s Balance of Payments Manual.

**Included a SAR 55 billion Aramco deal.

Riyadh led in FDI inflows for 2023 with SAR 33 billion, followed by the Eastern Province at SAR 28.5 billion, and then Madinah.

The manufacturing sector topped FDI with SAR 34.4 billion, as shown below:

FDI stock increased by 13% in 2023, reaching SAR 897 billion, up from SAR 791 billion in 2022.

By the end of 2023, the manufacturing sector topped the FDI stock with around SAR 258.7 billion. Below is the ranking of the key sectors contributing to the FDI stock:

The United States led FDI stock in the Kingdom with SAR 202 billion (23%), followed by the UAE, UK, and France at 12%, 8%, and 7%, respectively.