Saudi FDI hits SR159.1 billion as construction leads inflows

Foreign investors poured SR159.1 billion into Saudi Arabia last year, as Saudi FDI inflows rose 33.5% on the back of construction and manufacturing.

The figures come from the latest report by the General Authority for Statistics (GASTAT). That total, worth about $42.26 billion, was up from SR119.2 billion in 2024.

Construction took the largest slice, at SR34.5 billion, equal to 21.7% of the total. Manufacturing was a close second with SR33.4 billion, or roughly a fifth.

Administrative and support services came third, adding SR22.4 billion, or 14.1%.

Where Saudi FDI came from

Luxembourg was the biggest single source of net inflows, at SR24.4 billion. The UAE and Egypt each contributed SR9.4 billion, while Yemen accounted for SR5.2 billion.

When it comes to the accumulated stock of investment, the UAE led with SR170.7 billion. Luxembourg follows at SR125.3 billion, with the United States third on SR73 billion.

By sector, manufacturing held over a quarter of that stock, worth SR285.4 billion. Trade, including vehicle repair, accounted for 14.9%, while finance and insurance made up 12.6%.

Outflows nearly double

However, money flowing out of the kingdom rose even faster. Outflows almost doubled, jumping 98.5% from SR39.2 billion to SR77.7 billion.

As a result, net flows barely moved, edging up 1.7% to SR81.4 billion. Meanwhile, total foreign holdings in the economy grew 8.3%, passing SR1.06 trillion at year-end.

Manufacturing was the largest source of outflows, at SR25.2 billion, or 32.4%. Next came construction, on SR14.8 billion, and the trade sector, on roughly SR11 billion.

Saudi FDI and Vision 2030

Riyadh has introduced a series of reforms to draw foreign capital. For example, a revised Investment Law came into force in February 2025, cutting red tape and giving investors more protection.

In addition, the Regional Headquarters Program rewards global companies that base their regional operations in the kingdom.

All of this forms part of Vision 2030, the wider push to diversify the economy away from oil. Under that plan, the government wants foreign investment of $100 billion a year by 2030, and last year’s total reached around 42% of that.

Hamza Dweik, who heads Middle East and North Africa trading at Saxo Bank, said the jump shows how much capital is backing the country’s transformation. “The direction of travel is positive,” he said.

According to Dweik, Vision 2030 “has created a sizeable pipeline of investment opportunities” outside oil. Reforms and the opening of more sectors to foreign firms have widened the choice further, he added.

In his view, global companies now treat the kingdom as a place to build operations and share in local growth, not just a market to sell into.

Still, he warned that the bigger test lies ahead. Even after reaching $42.38 billion, he said, Saudi FDI has “considerable room for further expansion” before 2030. In his view, steady foreign money in construction and factories would signal long-term commitment.

GASTAT defines Saudi FDI as a lasting relationship in which a foreign investor controls at least 10% of the votes in a company.