Saudi Arabia's FDI net inflows rise 14.5pc in Q2

RIYADH, Sept 28 (Arab News): Saudi Arabia's foreign direct investment net inflows climbed 14.5 per cent year on year to SR22.8 billion ($6.1 billion) in the second quarter, signaling a steady appetite for the Kingdom's reform-driven economy.

The figure, released by the General Authority for Statistics, compared with SR19.9 billion a year earlier. On a quarterly basis, net inflows dipped 3.5 per cent from the SR23.7 billion recorded in the first three months of 2025, underscoring lingering global headwinds that continue to weigh on cross-border capital flows.

The increase in net inflows reflects a broader effort by Saudi Arabia to attract long-term foreign capital as part of its Vision 2030 strategy, which aims to diversify the economy beyond oil revenues.

The Kingdom has been implementing regulatory reforms, opening up sectors such as tourism, renewable energy, and technology to international investors, and launching initiatives through the Ministry of Investment to position Saudi Arabia as a regional hub for capital flows.

In its release, GASTAT stated: "The volume of inflows amounted to about SR24.9 billion during the second quarter of 2025. It achieved a decrease of 11.5 per cent compared to the second quarter of 2024, which was approximately SR28.2 billion."

It added: "While it recorded a decrease of 3.5 per cent compared to the first quarter of 2025, which recorded SR26 billion."

Meanwhile, FDI outflows dropped sharply to SR2.1 billion, down 74.5 per cent from SR8.2 billion a year earlier and 10.5 per cent lower than SR2.3 billion in the previous quarter.