RIYADH — Saudi Arabia’s foreign direct investment (FDI) balance experienced a notable growth of 6.1 percent by the end of the first quarter of this year compared to the same period last year, signaling strong confidence from foreign investors in the Kingdom’s investment climate.
A recent report from the Ministry of Investment highlighted that FDI flows grew by 0.6 percent during the first quarter of this year compared to the same period in the previous year. Additionally, the number of investment licenses issued by the ministry reached 2,728 in the second quarter of 2024, excluding licenses related to the campaign to combat violators of the Commercial Concealment Law. This figure underscores Saudi Arabia’s appeal as an investment destination, benefiting from a stable and supportive business environment.
Total fixed capital formation saw a growth of 7.9 percent during the first quarter of this year compared to the same period in 2023. This increase is attributed to a 17.8 percent rise in fixed capital formation in the government sector and a 7.2 percent rise in the non-government sector during the same period.
The report also revealed positive growth across most economic activities in the first quarter of 2024. The wholesale and retail trade, restaurants, and hotels sector achieved the highest growth rate at 5.9 percent, followed by transportation, storage, and communications at 5 percent. The sectors of collective, social, and personal services, along with agriculture, forestry, and fisheries, also saw growth rates of 4.5 percent and 4.4 percent, respectively.
In a bid to further bolster investment and trade relations, the Ministry of Investment, in collaboration with the Thai Investment Board and the Embassy of Thailand in Saudi Arabia, organized the Saudi-Thai Investment Forum in Riyadh. The event was graced by Minister of Investment Eng. Khalid Al-Falih and Thai Minister of Foreign Affairs Maris Sangiampongsa, along with key officials, CEOs of major companies, and private sector representatives from both countries.
During the forum, the opening of a Thai Investment Board office in Riyadh was announced, marking a significant step in strengthening the strategic partnership between Saudi Arabia and Thailand. This new office aims to expand trade exchange and enhance economic ties between the two nations. The forum also witnessed the signing of 11 agreements and memoranda of understanding across various sectors, including agriculture, food, tourism, infrastructure, and energy. These agreements are expected to foster trade cooperation and further develop trade and investment relations between the two countries.
The event underscores Saudi Arabia’s commitment to diversifying its economic partnerships and attracting foreign investment, reinforcing its position as a key player in the global market.
