Saudi Gazette report

RIYADH — Saudi Arabia has released detailed foreign direct investment (FDI) statistics for 2023, employing the new methodology from the Balance of Payments Manual (BPM6) published by the International Monetary Fund (IMF).

The latest statistics indicate that the actual performance of FDI has surpassed the targets set by the National Investment Strategy (NIS).

In 2023, FDI inflow reached SR96 billion ($25.5 billion), exceeding the NIS target of SR83 billion ($22 billion) by 16%.

Additionally, FDI inflow constituted 2.4% of the Kingdom's GDP, achieving the NIS target. Notably, when excluding the exceptional Aramco pipeline deal in 2022, FDI inflow grew by 50% compared to 2022.

The total FDI stock in the Kingdom also saw a significant increase, rising by 13% in 2023 to approximately SR900 billion ($240 billion).

Within the G20, Saudi Arabia ranked 11th in terms of FDI net inflow and 16th for cumulative FDI stock in 2023.

Furthermore, the Kingdom achieved the second highest growth rate in FDI net inflow and the fourth highest growth rate in FDI stock for the same year.

In terms of market segments, the manufacturing sector emerged as the leading area for FDI stock, inflow, and net inflow.

The United States topped the list of the top 15 countries by ultimate controlling parent (UCP) for FDI stock, contributing SR202 billion ($54 billion), which represents 23% of the total FDI stock in the Kingdom.

Meanwhile, the United Arab Emirates ranked first in terms of FDI inflow, with an investment of SR13 billion ($3 billion), accounting for 14% of the total.

Since the announcement of Vision 2030 in 2016, key FDI indicators have shown significant improvement. The data reflects that the NIS has consistently exceeded its targets in 2021, 2022, and 2023.

In comparison, FDI inflow nearly tripled, with an average of SR112 billion ($30 billion) over the last three years (2021-2023) following the launch of the NIS, compared to an average of SR43 billion ($11.5 billion) from 2013 to 2015, prior to the launch of Saudi Vision 2030.

These statistics were developed through a comprehensive analysis of all licensed international investors in the Kingdom, with the FDI data categorized by economic activity, investor country, and administrative region. This approach ensures that investors have access to high-level information to guide their investment decisions.