Global FDI rose 11% y-o-y to USD 1.4 tn in 2024, though figures dipped 8% when excluding European conduit economies, according to the latest Global Investment Trends Monitor (pdf) released by UN Trade and Development. Greenfield projects dropped 8% y-o-y in terms of count, while their values fell 7% — although still remaining only second to their 2023 peak.

The Middle East attracted USD 70 bn in FDI last year, marking a 13% increase y-o-y, with diversification initiatives and mega-projects in renewable energy, technology, and tourism leading the way, Khaleej Times quotes the report as saying. The kingdom alone recorded USD 30 bn in FDI inflows, spurred by transformative projects like the USD 500 bn Neom development. Despite global fluxes, the Middle East and the GCC stood out as resilient regions, driven by diversification strategies and sustainability-focused investments.

International project finance — mostly critical for infrastructure projects — continued a downward trend with a 26% fall in volume and a decline of about a third in terms of value. Meanwhile, cross-border M&A activity fell 13% y-o-y, though total values increased by 2%.

Expect “moderate growth” for FDI in 2025, though not without downside risks. toxic mashup of geopolitical tensions, inflation, and shifting trade dynamics could spur uncertainty among investors and spell trouble for global FDI flows. Still, some investors — private equity funds in particular — are expected to use up a lot of their dry powder, especially on tech firms amid the ongoing AI boom.

Prospects look good for the Middle East: The GCC region is expected to see vibrant FDI growth in 2025, fueled by improved financing conditions and an increase in mergers and acquisitions, the Khaleej Times quotes the report as saying.

TASI

12,354

-0.1% (YTD: +2.6%)

MSCI Tadawul 30

1,543

-0.1% (YTD: +2.3%)

NomuC

30,847

-0.5% (YTD: -2.0%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

29,998

+0.1% (YTD: +0.9%)

ADX

9,564

+0.2% (YTD: +1.5%)

DFM

5,226

-0.4% (YTD: +1.3%)

S&P 500

6,101

-0.3% (YTD: +3.7%)

FTSE 100

8,502

-0.7% (YTD: +4.0%)

Euro Stoxx 50

5,219

0.0% (YTD: +6.6%)

Brent crude

USD 78.5

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Natural gas (Nymex)

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+2.1%

Gold

USD 2,806.6

0.5%

BTC

USD 105,216.50

+0.1% (YTD: +12.4%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.1% yesterday on turnover of SAR 6.7 bn. The index is up 2.6% YTD.

In the green: Almoosa (+10.0%), Jouf Cement (+8.2%) and Northern Cement (+6.6%).

In the red: Saudi Re (-2.9%), Mesc (-2.7%) and Kingdom (-2.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.5% yesterday on turnover of SAR 47.6 mn. The index is down 2.0% YTD.

In the green: Qomel (+20.7%), Itmam (+12.9%) and Saudi Top (+6.1%).

In the red: First Avenue (-4.7%), Keir (-3.7%) and Aqaseem (-3.4%)

CORPORATE ACTIONS-

Kingdom Holding-led consortium abandons SAR 6.8 bn fund plans: A SAR 6.8 bn fundagreement between Kingdom Holding Company (KHC), Sumou Holding Company, and Jeddah Economic Company (Jec) to acquire the Alinma Jeddah Economic City Fund has been mutually terminated after the fund was deemed unnecessary, according to a filing to Tadawul.

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