International investors increase tenfold, regional HQs exceed targets: Al-Falih

Minister of Investment Khalid Al-Falih

Saudi Arabia’s Minister of Investment Khalid Al-Falih said that the number of registered international investors increased tenfold compared to pre-Vision 2030 levels.

Al-Falih highlighted that the global companies' regional headquarters (HQs) program now includes 550 regional offices, surpassing the 500-target set for 2030. Additionally, 1,200 premium residency permits were issued to international investors in 2024.

In his opening speech at the 28th annual World Investment Conference (WIC) in Riyadh, Al-Falih noted that the gross domestic product (GDP) increased by 70% compared to pre-Vision 2030 levels, reaching $1.1 trillion. He also highlighted that foreign direct investment (FDI) has tripled compared to pre-Vision 2030 levels.

The minister went on to say that global investment trends are undergoing significant changes, with overall capital formation growing at a rate of 5% annually. However, FDI flows declined by 6% since 2016, primarily due to a growing preference for risk-averse strategies and asset-light models adopted by international investors.

He further explained that several intersecting factors are influencing global investment, including technological advancements, loose monetary policies, and booming financial markets, alongside challenges such as geopolitical instability, trade barriers, skill shortages, and inflationary pressures following the COVID-19 pandemic.

Despite these challenges, Al-Falih added, the international community has largely succeeded in strengthening capital markets and restoring economic confidence.

Al-Falih further identified four key global investment trends shaping the future: investment in sustainability and circular carbon economies, the technological revolution and digital transformation, the reshaping of global supply chains, and demographics and their impact on economic growth.

He emphasized that these trends underscore the need for advanced infrastructure and investments in human capital to support emerging economies.