Following the adoption of a new methodology for calculating and measuring foreign direct investment last year, the Kingdom of Saudi Arabia released detailed annual statistics regarding foreign direct investment for the year 2023, which is in line with international standards, and on the balance of payments guide. Is based. and the International Investment Position Guide issued by the International Monetary Fund.
Foreign direct investment statistics, which are derived from a detailed analysis of all financial statements of local and foreign licensed companies in the Kingdom, include details by economic activity, countries investing in the Kingdom, and administrative regions. Its objective is to review the most prominent developments in foreign investment in the Kingdom and increase transparency by making available data and information related to foreign investment in the Kingdom, and ensuring that investors have access to accurate data that contributes to better investment decisions. Gives.
According to data on foreign direct investment published by the Ministry of Investment and the General Authority for Statistics, key foreign direct investment indicators have seen significant growth since the launch of “Kingdom Vision 2030” and its various strategic plans, including national investment. Strategy, as the National Investment Strategy has exceeded its ambitious targets for the years 2021 AD and 2022 AD and 2023 AD.
The most prominent results of FDI indicators for the year 2023 indicate the following:
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– Foreign direct investment (total) inflows in 2023 recorded approximately 96 billion riyals, 16% higher than the National Investment Strategy's target of 83 billion riyals.
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The ratio of foreign direct investment inflows to GDP reached 2.4% in 2023, achieving the target in the National Investment Strategy.
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– Increase in foreign direct investment flows by almost 50% between 2022 and 2023 AD (except the extraordinary Aramco deal).
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– The balance of foreign direct investment increased by 13% in the year 2023 compared to the year 2022, which recorded approximately 900 billion riyals.
The published statistics confirmed the effectiveness of ambitious initiatives, including vision programs, various regional strategies and the National Investment Strategy, which aim to increase the attractiveness of the investment climate in the Kingdom and attract more qualitative foreign investments from different parts of the world. The Kingdom has advanced at the level of G20 countries, as it has occupied the 11th position in terms of net foreign direct investment inflows and 16th in terms of foreign direct investment stock for the year 2023. Fourth in terms of growth rate of net foreign direct investment inflows and fourth in terms of growth rate of foreign direct investment stock for the same year.
Considering the performance of foreign direct investment in terms of economic activities for the year 2023 AD, according to the data published by the Ministry of Investment, the activity of manufacturing industries ranks first among the economic activities in terms of balance of foreign investment by the end. of 2023 AD, and it also comes first in terms of flow and net flow.
As for the countries investing in the Kingdom, according to the nationality of the major origin country, the United States tops the list of countries in the world in terms of balance of foreign direct investment at 202 billion riyals for the year 2023 AD. The United Arab Emirates accounts for 23% of the total balance of foreign direct investment in the Kingdom. The UAE leads the world in terms of foreign direct investment inflows, with flows estimated at around 13 billion riyals. , which accounts for about 14% of the total flow into the Kingdom in the same year.
Since the announcement of “Kingdom Vision 2030” in 2016, the Kingdom has seen significant growth in foreign investment, as indicators of foreign direct investment in the year 2023 indicate the following:
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– Compared to the average of the three years preceding the launch of Vision 2030 for the years (2013-2015), amounting to 43 billion riyals, and compared to the average of the last three years for the years (2021-2023), amounting to approximately 112 billion riyals, and hence the foreign direct investment inflow has almost 3 times.
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The value of foreign direct investment inflows increased by more than 240% in 2023 compared to 2017, from 28 billion riyals in 2017 to 96 billion riyals in 2023.
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The value of foreign direct investment outflows decreased by approximately 60% in 2023 compared to 2017, from 24 billion riyals in 2017 to 10 billion riyals in 2023.
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The value of net foreign direct investment inflows increased by more than 2,000% in 2023 compared to 2017, from approximately 4 billion riyals in 2017 to 86 billion riyals in 2023.
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The stock of foreign direct investment increased by approximately 80% in 2023, from 502 billion riyals in 2017 to approximately 900 billion riyals in 2023.
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The share of FDI inflows to the stock of FDI to increase from 6% in 2017 to 11% in 2023.
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The share of foreign direct investment outflow in the foreign direct investment stock was reduced from 5% in 2017 to 1% in 2023.
Minister of Investment, Engineer Khalid Al-Falih, explained that the data on foreign direct investment in the Kingdom for the year 2023 reflects the success of the Kingdom's Vision 2030 in diversifying and growing the economy, creating a world-class investment environment. Providing unprecedented opportunities for investors.
He added: “These comprehensive numbers demonstrate that the Kingdom's Vision 2030 and National Investment Strategy (NIS) are successful in attracting foreign direct investment to a wide range of economic activities across the Kingdom and from countries around the world.”
The minister said: “As a result of the positive changes in foreign direct investment in the Kingdom, it is expected that we will see more investors in the Saudi market who will benefit from the size and strength, stability of the Kingdom's economic and investment.” “Benefiting from its policies, its long-term economic vision, and solid financial and monetary foundations, as well as its strategic location, which… is a channel to access development opportunities throughout the Middle East and beyond.”
He added: “While there is still much work to be done, I am optimistic about the transformation we are seeing in the Kingdom, which will continue at an accelerated pace supported by regional strategies including the National Investment Strategy, Catalyst, and the National Investment Strategy.” The role of public investment funds, as well as mega-projects in the “Kingdom”.
For more information on foreign direct investment statistics, you can view the “Foreign Direct Investment Statistics Report in the Kingdom of Saudi Arabia” via this link. platform,