By Muslim Parrot Reporter
The General Authority for Statistics (GASTAT) has reported a substantial increase in foreign direct investment (FDI) in Saudi Arabia, with the FDI balance soaring to SR762 billion ($203.2 billion) at the close of 2022, marking a remarkable ascent from the SR659 billion ($175.7 billion) recorded in 2021.
According to the Annual Foreign Direct Investment for 2022 data released by GASTAT, the inflow of foreign direct investment into the Saudi economy surged by an impressive 20%, totaling SR123 billion ($32.8 billion) in 2022 compared to the previous year. Concurrently, outflows from foreign direct investment by companies within the Saudi economy experienced a growth rate of 12%, reaching SR17 billion ($4.5 billion).
Saudi Arabia has achieved substantial net foreign direct investment growth, with the net flows reaching SR105 billion ($28 billion) in 2022, compared to SR87 billion ($23.2 billion) in 2021.
The transformative industries sector played a pivotal role in this surge, contributing SR239 billion ($63.7 billion) to the total FDI balance by the end of 2022, accounting for 31% of the total balances.
In a related development, data from the “Foreign Direct Investment for the Third Quarter of 2023” revealed that net foreign direct investment flows in the Kingdom amounted to SR11 billion ($2.9 billion), indicating a 10% decrease during Q3 2023 compared to the preceding quarter. However, Q2 2023 witnessed a 26% increase, reaching SR13 billion ($3.4 billion), and Q1 2023 stood at SR9 billion ($2.4 billion).
During the third quarter of 2022, the outflow of foreign investment from the Kingdom’s economy amounted to SR5 billion ($1.33 billion), reflecting a 22.5% decrease compared to the second quarter of the same year. Additionally, foreign direct investment flows into the Kingdom’s economy decreased by 14.4% during Q3 2023, reaching SR17 billion ($4.5 billion) compared to SR19 billion ($5.06 billion) in the second quarter of the same year.
This dynamic FDI landscape underscores Saudi Arabia’s attractiveness to international investors and its commitment to fostering economic growth through strategic investments in transformative industries.