Net FDI inflows fall 13% y-o-y in 4Q 2024

Net inflow of foreign direct investment (FDI) in the Kingdom fell 13% y-o-y in 4Q 2024 to SAR 22.1 bn, according to the General Authority for Statistics’ (Gastat) latest FDI report (pdf). Net FDI inflow was up 26% during the quarter compared to SAR 17.5 bn in 3Q 2024,

The value of FDI inflows also declined 11% y-o-y in 4Q 2024 to SAR 23.8 bn, yet it grew 17% on a quarterly basis. Meanwhile, outflows rose 20% y-o-y during the quarter to SAR 1.8 bn, but fell 39% q-o-q.

ICYMI- Figures for 2024 have been updated from previous estimates, as part of a revision project launched early in 2024, using updated survey data and new sources, as well as a chain-linking method in line with global standards to provide more accurate real GDP growth estimates.

IN CONTEXT- The drop in net FDI comes as the Kingdom contends with softer oil export revenues, which declined USD 1.6 bn y-o-y over the first two months of 2025, according to Mees analysis. Continued downward pressure on oil prices — coinciding with Opec+ ramping up oil output — could strain public finances, with Saudi Arabia’s fiscal break-even oil price estimated at over USD 90 a barrel.

REMEMBER- FDI inflows for 2023 exceeded their target by 16%, reaching USD 25.6 bn and contributing 2.4% to the GDP. The value of the Kingdom’s announced greenfield FDI projects fell 28% y-o-y in 2024 to USD 22 bn — its third-highest level on record — with the majority of FDI coming from China, the UK, the US, and the UAE, Emirates NBD reported in March.