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Net foreign direct investment in the Kingdom totaled SAR 11.7 bn in 2Q 2024, slipping 7.5% y-o-y, according to the latest FDI report (pdf) by the General Authority for Statistics (Gastat). Total FDI inflows held steady on an annual basis in 2Q at SAR 19.4 bn. Net FDI inflows were up 5.6% y-o-y at SAR 9.5 bn in 1Q 2024.
Outflows are up: Outflows rose 14.1% during the quarter to come in at SAR 7.8 bn, rebounding from a 5.1% y-o-y fall seen in 1Q.
Down y-o-y, but up q-o-q-: On a quarterly basis, net FDI inflows were up 23.4% in 2Q 2024 compared to the previous quarter. Meanwhile, total FDI inflows and outflows grew 14.5% and 3.4% q-o-q.
BACKGROUND- Saudi is aiming to reel in USD 100 bn of foreign direct investment per year as part of Vision 2030. The Kingdom brought in an estimated USD 19 bn in 2023 and an average of USD 17 bn from 2017-2022. So far in 2024, Saudi’s FDI inflows stand at USD 9.7 bn.
IN CONTEXT- The pressure for funding is intensifying as oil prices remain weak, pushing Saudi’s budget into deficit and reshuffling megaprojects. Riyadh has tapped bond markets aggressively this year to narrow the funding gap, with oil giant Aramco raising USD 3 bn in debt just last week.
