Net inflows of foreign direct investment (FDI) in the Kingdom rose 14.5% y-o-y to SAR 22.8 bn in 2Q 2025, data (pdf) from the General Authority for Statistics (Gastat) showed. On a quarterly basis, net inflows fell 3.5% q-o-q.

The breakdown: Inflows reached SAR 24.9 bn during the quarter, down 11.5% y-o-y. Outflows fell to SAR 2.1 bn, marking a 74.5% y-o-y decline from SAR 8.2 bn in the same quarter last year.

BACKGROUND- The government is targeting USD 100 bn in FDI inflows by 2030 as part of its diversification agenda. FDI net inflows fell 6% y-o-y in 2024 to SAR 80 bn, despite FDI inflows rising 24% to SAR 119 bn during the year.

Is Saudi on track to hit Vision 2030 targets? Analysts we spoke to were skeptical. “I really don’t see that,” Head of MENA Economics at S&P Global Market Intelligence Ralf Weigert told EnterpriseAM Saudi in July, explaining that inflows would already need to be USD 50-60 bn a year if Vision 2030 were on track. Oxford Economics’ Scott Livermore struck a similar tone, saying FDI performance has improved but remains insufficient, with global trade tensions and regional geopolitical risks further weighing on investor appetite.

Beyond the target: Livermore cautioned against focusing narrowly on FDI, highlighting broader Vision 2030 gains. “Our analysis highlights several areas of success: the growing non-energy share of the economy, expansion in tourism, and improvements in the labour market. However, slower progress in other areas — such as FDI trends and non-oil exports — prompted adjustments to project timelines, with some likely to extend beyond 2035.”

Incentives boost: “Authorities, for example, now offer a 30-year tax relief to global firms establishing regional headquarters in the Kingdom — an incentive that should help boost FDI in the near to medium term,” he added.

Who’s investing? Weigert sees a clear rivalry shaping flows, with the China expected to keep growing its investments in the Gulf and catch up with US investment in the next couple of years. “Saudi Arabia and the UAE very wisely do not want to choose the US or China,” he told us.

Challenges remain: “The labor force needs to be developed further. The education system is still not quite as far developed as most investors would like. There’s kind of a gap in skills,” Weigert said. “On the one hand you have the Saudization drive and the need for every investor to employ Saudis, but on the other hand you still have a skill gap there. This is a bit of an issue for a foreign investor,” he added.

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