Net inflows of foreign direct investment (FDI) in the Kingdom rose 44% y-o-y to SAR 22.2 bn in 1Q 2025, preliminary data (pdf) from the General Authority for Statistics’ (Gastat) showed. However, net inflows saw a 7% decline on a quarterly basis, compared to SAR 24 bn in 4Q 2024.

The breakdown: Inflows rose 24% y-o-y to SAR 24 bn in the same period, while declining 6% on a quarterly basis. Outflows, on the other hand, dropped 54% y-o-y to SAR 1.8 bn in 1Q 2025, despite rising 7% q-o-q.

BACKGROUND- The government is targeting USD 100 bn FDI inflows by 2030. FDI inflows exceeded the 2023 target by 16% at USD 25.6 bn, contributing 2.4% to GDP, compared to an average of USD 17 bn annually during 2017-2022.

IN CONTEXT- The push to attract FDI comes amid growing fiscal pressure linked to oil pricevolatility and geopolitical risks, including potential increased supply from Iran. This coincides with expected output hikes from Opec+, as the Kingdom is currently unwinding 2.2 mn bbl / d in voluntary production cuts. Revenue from oil exports fell 21.2% y-o-y to SAR 61.96 bn in April, marking the lowest monthly total since June 2021.

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