Saudi Arabia’s net FDI rises by 37% to over $4bn

Saudi Arabia wants to attract $100 billion in annual FDI by 2030. Shutterstock
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Updated 30 December 2024
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Saudi Arabia’s net FDI rises by 37% to over $4bn

  • Surge primarily attributed to a significant decline in FDI outflows, which dropped by 74.36%
  • FDI inflows, reflecting the investments received by Saudi Arabia, declined by 7.22% to SR18 billion

RIYADH: Saudi Arabia’s net foreign direct investment saw a quarter-on-quarter rise of 37 percent in the three months to the end of September, according to the General Authority of Statistics.

Data released by the organization showed that the figure – which reflects the net investment gain for the Kingdom after accounting for both inbound and outbound activities – reached SR16 billion ($4.27 billion) over the period.

The surge was primarily attributed to a significant decline in FDI outflows, which dropped by 74.36 percent during this period to reach SR2 billion.

Meanwhile, FDI inflows, reflecting the investments received by Saudi Arabia, declined by 7.22 percent to SR18 billion.

The Kingdom has implemented significant regulatory reforms over the past two years to bolster foreign direct investment and foster economic diversification under Vision 2030.

The recent regulatory advancements underscore its commitment to positioning itself as an attractive destination for international investors.

These reforms, along with strategic investments in giga-projects like NEOM, align with Saudi Arabia’s Vision 2030 goals of attracting $100 billion in annual FDI and raising its contribution to gross domestic product to 5.7 percent by 2030.

The latest figures are calculated using a new methodology introduced by the Ministry of Investment in October.

The updated approach aligns with the International Monetary Fund’s sixth edition of the Balance of Payments Manual, providing enhanced transparency and accuracy in tracking cross-border transactions.

By focusing on innovation, enhancing global competitiveness, and modernizing its legal framework, the Kingdom continues to signal its openness for business and its readiness to engage with the international investment community.

Key regulatory changes include introducing a new investment regulation, amending the labor decree, and updating the laws governing companies and civil transactions.

Together, these initiatives are designed to reduce barriers to entry for foreign businesses, protect investor rights, and align legal frameworks with international standards.

The updated law replaces the foreign licensing system with a streamlined register managed by the Ministry of Investment.

It ensures equal treatment for Saudi and foriegn investors while enhancing protections against expropriation and safeguarding intellectual property rights. This simplification is expected to attract more FDI and boost stakeholder confidence.

According to a study by PwC in August, the amendments to the labor law align with global practices, offering improved benefits such as extended maternity and paternity leave, as well as bereavement leave.

Other updates address probation periods and dispute resolution mechanisms, reducing administrative burdens and fostering stronger employer-employee relationships.

In November, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved key measures to boost FDI and enhance international economic engagement.

Among these was the approval of the national general framework and guiding principles for such funding, aimed at fostering stronger ties with global organizations.

FDI inflows reached SR96 billion in 2023, a 50 percent annual increase.

The Cabinet also endorsed agreements to strengthen regional and international cooperation, including a tax treaty with Qatar to avoid double taxation and an aviation and space exploration framework with the US.

Additionally, the Kingdom joined the Cement and Concrete Breakthrough Initiative, reinforcing its sustainability and climate goals.

Domestically, the Cabinet highlighted advancements in tourism, with Saudi Arabia climbing 15 places in global tourist revenue rankings since 2019, and commended progress in economic collaboration with India in areas like technology, infrastructure, and sustainable transportation.

The session also reaffirmed the nation’s commitment to regional peace, global health initiatives, and economic diversification.


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

Updated 08 January 2026
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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

DID YOU KNOW?

• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.

• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.

• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.