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Saudi Arabia cements its status as a leading global investment destination

The Kingdom of Saudi Arabia seeks to invest all its strengths, from its distinguished strategic location, leading investment power, and Arab and Islamic depth, to reach a new investment stage based on increasing the number and quality of opportunities for investors, developing and diversifying the economy and its sustainability, developing the infrastructure, and improving the quality of life.

Saudi Arabia launched its Vision 2030 in 2016, to be implemented in three phases, each phase representing a foundational stage for the next. It will reach its third phase (2026-2030) with institutional maturity that allows for alignment between strategic and financial planning, continuous evaluation and follow-up of existing initiatives, and course correction to serve the development path and be consistent with the public interest, while maintaining its focus on achieving its long-term goals while adapting implementation methods to the requirements of the phase. This will drive sustainable progress and prosperity and make the Kingdom at the forefront of advanced countries. The third phase witnessed the successive launch of national sectoral and regional strategies as long-term implementation tools that complement what the Vision realisation programs have started, with a more comprehensive focus and coverage that serves the objectives of the phase, contributes to achieving its goals, and ensures the sustainability of the impact beyond 2030.

Saudi Arabia, through its ambitious vision, launched the National Investment Strategy, one of the main enablers for achieving the goals of the “Saudi Vision 2030”, with the aim of increasing the size and efficiency of investments and stimulating economic growth in various priority sectors, while assigning a greater role to the local and foreign private sector. This achieves many of the vision’s goals, including raising the private sector’s contribution to the GDP to 65 percent, enhancing foreign direct investment to reach 5.7 percent of the GDP, and increasing the percentage of non-oil exports from 16 percent to 50 percent of the total non-oil GDP.

With the launch of the National Investment Strategy in 2021, Saudi Arabia began a new investment phase based on working to increase the number and quality of opportunities for investors and empowering them, developing and making investment opportunities available, providing financing solutions, enhancing competitiveness, and developing the “Invest in Saudi Arabia” platform to be the national platform for displaying and marketing investment opportunities available in Saudi Arabia.

Improving the transparency and quality of foreign direct investment statistics in Saudi Arabia has enabled investors and decision-makers to make better decisions, in line with the goals pursued through the launch of the National Investment Strategy, the development of special economic zones, the National Global Supply Chains Initiative, and the launch of mega-projects.

The value of foreign direct investment inflows into Saudi Arabia grew by 14 percent in 2025, reaching SAR 136 billion, compared to SAR 119 billion in 2024, which is about five times what it was in 2017. The stock of foreign direct investment recorded a growth of 13 percent compared to the previous year, reaching about SAR 1.1 trillion at the end of 2025, achieving an increase of about 120 percent compared to 2017.

The number of licenses for international companies that have established regional headquarters in Saudi Arabia has exceeded 700. Their activities cover many regions of the world, extending from the Middle East to Africa, and from South and Central Asia to Europe, and have contributed to achieving multiple economic effects such as: supporting industries, research and development centers, innovation, and others.

According to the World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD), Saudi Arabia advanced to 13th place globally among the largest economies receiving foreign direct investment in 2025, compared to 17th place in 2024. Net foreign direct investment flows to Saudi Arabia amounted to 122 billion Saudi riyals in 2025, compared to about 80 billion Saudi riyals in 2024, registering a growth of nearly 53 percent.

The report confirmed the story of the development that Saudi Arabia has witnessed during the past five years, and the achievement of the objectives of the National Investment Strategy, which came to raise the competitiveness of the Saudi investment environment, through a package of initiatives to enable investors to enter the market in easy steps.

Foreign private investment inflows into Saudi Arabia’s private markets reached SAR 20 billion, equivalent to USD 5.3 billion, during 2025, representing about 60 percent of total private investments in Saudi Arabia, according to a report by the Saudi Venture Capital Company. The report showed that the private investment market in Saudi Arabia has developed from an emerging market to one of the most active markets in the Middle East and North Africa region, supported by comprehensive economic reforms and the modernisation of regulatory frameworks. More than SAR 40 billion, equivalent to USD 11 billion, of foreign private investment has flowed into Saudi private markets since 2019, highlighting the growing confidence of international investors in Saudi Arabia’s long-term investment prospects.

According to the report, venture capital continues to play its role as the main gateway for attracting foreign private investment, with Saudi Arabia maintaining its position as the largest venture capital market in the Middle East and North Africa region for the third year in a row. Private equity activity is witnessing further diversification through the increasing number of mid-market deals, while private debt has emerged as an important complementary financing channel that supports the expansion of companies and enhances their readiness before the initial public offering.

The report noted the deepening integration of Saudi Arabia into global private investment markets, with the foreign investor base expanding more than fivefold, from 28 investors in 2019 to 148 investors in 2025, with international participation expanding to include North America, Europe, Southeast Asia, and the Middle East and North Africa region, amid growing commitment from international investors to establish a long-term presence in Saudi Arabia.

The report identified seven key enablers driving the continued growth of foreign private investment in Saudi Arabia, including: macroeconomic stability, modernisation of regulatory frameworks, maturity of financial market infrastructure, government-backed incentive investment, sectoral initiatives, local presence of global investors, and a structured approach to value creation in the private investment ecosystem.

Noura bint Mohammed Al-Sarhan, CEO of the Saudi Venture Capital Company, explained in a statement to the Saudi Press Agency that the company’s report shows that the growth of foreign investment in Saudi Arabia’s private markets has become more balanced with the increase in the number of deals, the shift in the mix towards more stable mid-market deals, and the expansion of private credit that supports working capital financing and readiness before the initial public offering. The interest of foreign investors is diversifying sectorally to go beyond financial technologies and e-commerce to healthcare and other priority sectors.

She emphasised that the objectives of the “Saudi Vision 2030” have contributed to reshaping the investment environment in Saudi Arabia through continuous economic and regulatory reforms, most notably the National Investment Strategy, the development of institutional investment systems, and the expansion of capital markets, which has enhanced the attractiveness of the Saudi market for foreign investment and raised the level of clarity of opportunities for investors. She explained that these transformations have provided a more attractive basis for long-term investment in the largest economy in the Middle East and North Africa region, supported by macroeconomic stability, the maturity of the financial market infrastructure, and the growth of sectoral initiatives that are consistent with the priorities of national transformation.

It stated that the Saudi Venture Capital Company, as a development fund and market maker, continues to bear early risks that pave the way for foreign investors and enhance the flow of foreign capital into Saudi companies through investment in funds; since its inception, it has committed to more than 67 investment funds, including venture capital, private equity and private debt funds.

She said that “with the expansion of the foreign investor base, the increase in their local presence, and the diversification of sectors and investment asset classes, we are witnessing the system moving to a more mature stage, in which promising opportunities are available to deepen the financing of Saudi companies, expand investment in sectors that are consistent with the objectives of Saudi Vision 2030, and enhance the integration of the Saudi economy into the global private investment system in the long term.”

For his part, Abdullah bin Ibrahim Al-Khuraiji, First Vice Chairman of the Board of Directors of the Riyadh Chamber, explained in his interview with the Saudi Press Agency (SPA) that the Kingdom of Saudi Arabia has succeeded in establishing its position as one of the most attractive investment destinations at the regional and global levels, thanks to the economic transformations led by the Saudi Vision 2030, and the accompanying legislative and regulatory reforms that have strengthened the business environment and raised the competitiveness of the national economy.

He stressed that the “Saudi Vision 2030” was not limited to attracting foreign capital, but rather established an integrated investment system based on transparency, ease of doing business, investor protection, and equal opportunities, in addition to developing infrastructure, empowering the private sector, and opening up promising economic sectors to local and international investors, which made Saudi Arabia a preferred destination for quality investments with added value.

He pointed to the influx of foreign investments that Saudi Arabia is witnessing today, which reflects the confidence of the global investment community in the strength of the Saudi economy, the stability of its legislative environment, the efficiency of its institutions, and its ability to achieve sustainable growth. He emphasized that the accelerated economic reforms have contributed to building a more diversified and flexible economy, and have created broad investment opportunities in the industrial, technology, energy, logistics, tourism, digital economy, and other strategic sectors.

He stated that Saudi Arabia is no longer just competing to attract capital, but has become a magnet for quality investments that transfer knowledge, localise technologies, provide job opportunities, and enhance local content, which is consistent with the objectives of the “Saudi Vision 2030” in building a prosperous and sustainable economy. He emphasized that the continued development of the investment environment, the modernization of regulations and legislation, and the strengthening of the partnership between the public and private sectors will continue to support Saudi Arabia’s attractiveness to foreign investments and consolidate its position as a global economic and investment center. He stressed that the Riyadh Chamber will remain an active partner in supporting investors, empowering the business sector, and enhancing communication with international investors in a way that contributes to achieving Saudi Arabia’s economic development goals.

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