Saudi Arabia’s FDI increases 23.4 percent in Q2
Date
9/30/2024 4:08:39 AM
(MENAFN) Saudi Arabia has witnessed a substantial 23.4 percent increase in foreign direct investment (FDI) during the second quarter of this year compared to the previous three months, according to official data. The latest figures released by the General Authority for Statistics indicate that the net FDI flow reached approximately SR11.7 billion (USD3.12 billion) in the second quarter of 2024, up from SR9.5 billion recorded in the first quarter. This growth is a positive sign for the Kingdom's Economy and demonstrates its attractiveness to international investors.
Attracting foreign investment is a fundamental objective of Saudi Arabia's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues. As part of this ambitious vision, the Kingdom has set a target of attracting USD100 billion in FDI by the end of the decade. The recent increase in FDI reflects ongoing efforts to enhance the investment environment and foster economic development, further solidifying Saudi Arabia’s position as a favorable destination for global investors.
However, it is important to note that the net inflow of FDI in the second quarter experienced a decline of 7.5 percent compared to the same period in 2023, when inflows reached SR12.6 billion. Despite this decline, the total volume of FDI inflows grew by 14.5 percent to SR19.4 billion when compared to the previous quarter. The report also highlighted that FDI outflows amounted to SR7.8 billion, which represents a year-on-year increase of 14.1 percent and a quarter-on-quarter rise of 3.4 percent.
In August, a report from Standard Chartered emphasized that Saudi Arabia's updated investment law and recent reforms could facilitate the country’s goal of attracting USD24 billion in FDI this year. Last month, the Kingdom approved an updated investment law designed to enhance FDI flows, with the Ministry of Investment stating that the new legislation would increase transparency and simplify the investment process. These strategic reforms are expected to bolster investor confidence and contribute to the Kingdom’s long-term economic objectives.
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