Saudi Arabia witnessed in 2023 a significant increase in greenfield foreign direct investment (FDI) inflows, with the amount reaching $28.78 billion. This figure surpassed the previous peak of $17.57 billion in 2018, although it remains below the record high of $34.26 billion set in 2008, as stated in a report by Emirates NBD, a Dubai-based lender.
Read more: Saudi Arabia reveals FDI inflow of $4.53 billion in Q3 of 2023
Among the cities in Saudi Arabia, Riyadh received the largest share of FDI inflows in 2023, amounting to $8.18 billion. Ras Al Khair followed closely behind with $4.23 billion, while Dammam received $772 million.
Notably, the number of projects in the country reached a new record, increasing year-on-year to 359. Chinese investments dominated the greenfield inflows, accounting for 58 percent of the total. The investments from China amounted to $16.75 billion in 2023, a significant increase from $1.47 billion in the previous year.
In Q2 2023, Saudi Arabia attracted $1.65 billion in FDI inflows, according to the country’s Ministry of Economy and Planning.
On 24 October, 2023, Saudi officials launched the Neom Investment Fund (NIF), with the aim of pulling in investors to support the development of the planned city.
According to a report released by GlobalData in May 2023, Riyadh’s government has been actively seeking foreign investments to bolster various industries and reduce dependence on fossil fuels. The report highlighted that Saudi Arabia remains the second most sought-after destination for foreign direct investment (FDI) in the Middle East and Africa (MEA), narrowly surpassing South Africa.
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