According to a government study, Saudi Arabia attracted FDI of SR8.1 billion ($2.1 billion) in the first quarter of 2023, representing a 10.2% increase over the same period last year.
According to the most recent bulletin from the Ministry of Economy and Planning of the Kingdom, the figure for the first three months of 2023 also marked a 12.4 per cent increase over the prior quarter.
These changes are in line with Saudi Arabia’s Vision 2030 strategy for economic diversification, which intends to expand FDI’s share of the country’s GDP from 3.8 per cent in 2016 to 5.7 per cent by 2030.
Saudi Arabia likewise wants to dominate the global investment scene, and the country intends to do it by boosting the economy and diversifying its sources of income.
The Kingdom’s GDP increased by 3.8 per cent in the first quarter of this year compared to the same period last year, according to the June bulletin.
Additionally, non-oil operations increased by 5.4 per cent year over year, compared to 1.4 per cent growth in the oil sectors.
The report also noted that consumer loans increased by 2.6 per cent to SR448 billion in the first quarter from the same time last year.
In addition, while unemployment reached 8.5 per cent, 52.4 per cent of Saudi citizens were in the labour force.
The study states that first-quarter imports increased year over year by 27.8% to SR261 billion.
The government’s numerous measures are the reason Saudi Arabia is becoming a more important place to invest.
In an effort to bring in SR12.4 trillion in total investment and SR1.8 trillion in FDI between 2021 and 2030, the Kingdom has implemented more than 600 economic reforms, according to the Finance Ministry, since the launch of the Vision 2030 blueprint in 2016.
The acting deputy minister for investment promotion, Saad Al-Shahrani, told Arab News in August 2022 that the Kingdom increased FDI by 18% in 2020 despite a global decline of FDI of 35% owing to the pandemic.
Investment Minister Khalid Al-Falih had similar views when he declared in March that international corporations moving their headquarters to Saudi Arabia may be eligible for tax breaks in an effort to win over lenders and establish the Kingdom as a major player.