Saudi Arabia witnessed a notable increase in net foreign direct investment (FDI) inflows, rising by 5.6% to 9.5 billion riyals ($2.53 billion) in the first quarter of 2024, according to recent government data. This positive trend highlights the kingdom’s growing appeal as a global trade and investment hub.
The first three months of 2024 saw a 0.6% rise in FDI inflows to 17 billion riyals compared to the same period last year, while outflows decreased by 5.1% to approximately 7.5 billion riyals. These figures underscore Saudi Arabia's successful efforts to attract substantial foreign investments and stimulate its economy.
Central to this success is Crown Prince Mohammed bin Salman’s Vision 2030 initiative, which aims to draw $100 billion in FDI by 2030. This ambitious strategy seeks to diversify the kingdom’s economy beyond its traditional reliance on crude oil exports, bolstering non-oil GDP and fostering sustainable economic growth.
Earlier this month, foreign investors showed strong interest in Saudi Aramco's $11.2 billion secondary share sale, purchasing over half of the offered shares. Such significant investments not only bolster FDI but also enhance Saudi Arabia's position in the global trade arena. Despite the impressive investments from the oil giant, the kingdom continues to strive towards its 2030 FDI target, with 2022 seeing a peak of $32.8 billion and last year reaching $19.2 billion.
The steady rise in FDI inflows in Q1 2024 is a positive indicator of Saudi Arabia’s progress in economic diversification and its attractiveness to global investors. This upward trend is expected to further enhance the kingdom’s trade prospects and economic stability.
#ITCNewsUpdates #BreakingNews #TradeNews #InvestmentUpdate #SaudiArabia #EconomicGrowth #GlobalInvestments
