Dubai – Foreign direct investment (FDI) inflows into Saudi Arabia increased strongly in the second quarter of 2025, while outward investment flows took a plunge, reflecting the Kingdom's changing financial priorities within Vision 2030.
Net FDI inflows totalled SR22.8 billion ($6.08 billion) during April-June 2025, an increase of 14.5 per cent from SR19.9 billion a year ago, as per the General Authority for Statistics. The amount was slightly less than the SR23.7 billion posted in the previous quarter, down 3.5 per cent quarter-on-quarter.
Inward flows for inward investment in Q2 amounted to SR24.9 billion, which was 11.5 per cent lower than a year ago and 4.1 per cent below the first quarter. Outward flows, on the other hand, plummeted to SR2.1 billion, which was 74.5 per cent lower compared to SR8.2 billion a year ago and 10.5 per cent lower than Q1 2025.
The reverse figures highlight Saudi Arabia's resilience in attracting foreign capital in the face of global economic headwinds, as well as a purposeful retreat from aggressive outward investments. The trend is seen as an indicator of a more robust domestic financing drive as the Kingdom ramps up its Vision 2030 plan, aimed at diversifying the economy away from oil.
Foreign investors remain attracted to Saudi Arabia's fast-growing technology, tourism, and renewable energy sectors. Meanwhile, the decline in outflows indicates that companies are focusing on domestic reinvestment to take advantage of the government-driven reforms, infrastructure investment, and the consumer base growing in the country.
As the Kingdom jostles to reconcile global aspirations with local agendas, the recent FDI figures will be keenly observed by the global markets and policymakers alike, highlighting Riyadh's pivotal position in determining investment trends in the Gulf region.
