Saudi Arabia’s green FDI outflows reached USD 25.1 bn between 2020 and 2024, according to a strategy& report (pdf). Saudi Arabia, the UAE, and Oman accounted for the bulk of large-scale green FDI in the GCC during 2020-2024, together logging 29 outbound and 10 inbound investments.

The breakdown: Some USD 19 bn of Saudi’s capital went to hydrogen and ammonia, while USD 2 bn went to renewable power, USD 2 bn to batteries, USD 1 bn to sustainable construction, and USD 1 bn to green industrials and chemicals. The country invested USD 10 bn in Egypt, USD 7 bn in Thailand, USD 5 bn in Brazil, USD 2 bn in Australia, and USD 1 bn in the UK.

The Kingdom received the largest amount of green investment inflows across the region at USD 12.6 bn, followed by Oman at USD 8.9 bn, with the bulk of inflows focusing on hydrogen and the EV sector. The UAE was the recipient of just USD 2.5 bn in green FDI inflows during the same period. Weak investment support, policy gaps, and regulatory uncertainty weighed on inbound FDI flows.

The GCC can step up its green FDI game by opening up sustainable finance, securing long-term buyers for green products, and deepening local markets, strategy& said. A few policy tweaks would help too, including clearer carbon pricing and green taxes, more flexible ownership rules, and stronger investor protections. A dedicated green manufacturing law and industry fund could help incentivize eco-friendly production by reducing risk and fueling demand.

The outlook: Despite trade frictions, geopolitical uncertainty, and shifting capital flows from climate tech to data centers, corporate sustainability targets and technology advances will keep green FDI on a growth path in the long term, strategy& said. At a time when tariffs are recalibrating trade and manufacturing flows, countries can also benefit from fresh avenues for green FDI flows, and the GCC is well positioned to emerge not just as an investor but also as a leading destination for sustainable investment, the report noted.

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