Saudi Arabia’s fixed capital investment rose 5.1% year on year to 358.2 billion riyals (USD 95.4 billion) in the first quarter of 2026, underlining the Kingdom’s continued investment drive as it advances its “Vision 2030” economic diversification strategy.
According to the Ministry of Investment’s latest economic indicators report, growth in gross fixed capital formation (GFCF) was supported by increased government spending alongside sustained private-sector investment.
The non-government sector remained the largest contributor to investment, accounting for nearly 89% of total GFCF during the quarter. Private-sector investment reached 319.9 billion riyals, up 1.3% from a year earlier, while government investment jumped 54% to 38.3 billion riyals, reflecting continued expenditure on infrastructure and strategic development projects.
The ministry said fixed capital formation had returned to growth after contracting by 6% in 2025, signalling renewed investment momentum across the economy.
The figures come as Saudi Arabia continues to channel billions of dollars into large-scale infrastructure, tourism, industrial and technology projects under “Vision 2030,” while encouraging greater private-sector participation.
The International Monetary Fund said earlier this month that the Saudi economy entered 2026 with “strong momentum,” supported by resilient domestic demand and robust non-oil activity, although it expects overall growth to moderate during the year.
Official data showed Saudi Arabia’s real GDP expanded 3% in the first quarter compared with a year earlier. Oil and non-oil activities each grew 2.9%, while government activities increased 1.5%.
However, investment trends were mixed beneath the headline figures. Fixed capital formation in the non-oil, non-government sector, the largest component of private investment, edged down 0.2%, suggesting businesses remain cautious despite continued economic expansion.
Other indicators painted a similarly mixed picture. Consumer inflation remained subdued, with the consumer price index rising 1.7% year on year in April, while point-of-sale transactions increased 11.8%, highlighting resilient consumer spending.
Meanwhile, the purchasing managers’ index for the non-oil private sector eased to 52.8 in May. Although lower than a year earlier, the reading remained above the 50-point threshold, indicating continued expansion in business activity.