Foreign investments in Saudi Arabia dropped by 24% in the third quarter

BY THE ARAB TODAY Dec 30, 2024

Foreign investments in Saudi Arabia dropped by 24% in the third quarter
Foreign investments in Saudi Arabia dropped by 24% in the third quarter

Foreign investments in Saudi Arabia dropped by 24% in the third quarter

Saudi Arabia received $4.3 billion (SAR 16 billion) in foreign investments during the third quarter of 2024, which is 24% less than the same period last year, according to official data released on Monday.

Saudi’s FDI

Foreign direct investment (FDI) inflows into Saudi Arabia increased by 37% compared to the previous quarter, according to a report from the General Authority for Statistics (GASTAT). In the third quarter, total FDI inflows were $4.8 billion (SAR 18 billion), which is 21% lower than the same period last year and 8% lower than the previous quarter.

On the other hand, FDI outflows (investments leaving the country) rose by 27% in the third quarter compared to the same period in 2023, reaching $532.7 million (SAR 2 billion). However, this was a 74% drop from the previous quarter, when outflows totaled $2.08 billion (SAR 7.8 billion).

Big Goal

Saudi Arabia aims to attract $100 billion in foreign investment every year by 2030.

Saudi Economy

Saudi Arabia’s economy grew by 2.8% in the third quarter of 2024 compared to the same time in 2023, mainly due to strong growth in non-oil sectors, according to GASTAT. The adjusted GDP increased by 0.9% compared to the second quarter of 2024.

At current prices, the GDP for the quarter reached $266.2 billion (SAR 1 trillion). The largest contributor was crude oil and natural gas, making up 22.8% of the GDP.

Imports rose by 7.3% from the previous year and 3.8% from the last quarter, growing faster than exports. Exports increased by 3% year-on-year but dropped by 5.7% compared to the previous quarter.

Non-oil sectors grew by 4.3% year-on-year and 0.7% quarter-on-quarter, showing progress in Saudi Arabia’s efforts to reduce its reliance on oil as part of Vision 2030.

In November, Saudi Arabia’s non-oil sector grew at its fastest pace in 16 months, driven by high demand, according to the Riyad Bank Saudi Arabia PMI. The index rose to 59 in November, up from 56.7 in October, marking four straight months of growth.

Published: 30th December 2024

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