RIYADH: Saudi Arabia is steadily progressing in its journey to attract $100 billion in foreign direct investments by the end of this decade, with the Kingdom heavily focusing on securing funds in high-growth sectors, experts have said.

Saudi Arabia’s Vision 2030 economic diversification program aims to transform its economic landscape, including attracting foreign direct investment and increasing FDI’s contribution to the Kingdom’s gross domestic product.

To facilitate and increase FDI, in August Saudi Arabia approved an updated investment law, aimed at boosting transparency and easing the process of investing in the Kingdom.

Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa, said that the mining sector is one of the most promising industries that will help the Kingdom achieve its FDI goals by 2030.

He also pointed out that the ongoing regulatory reforms happening in Saudi Arabia are making the Kingdom an attractive destination for foreign investments.

“Saudi Arabia’s National Investment Strategy, central to Vision 2030, aims to transform the Kingdom into a globally competitive, innovation-driven economy,” said El-Asmar. 

Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities.

Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa

He added: “Mining and metals are among the most promising areas, as the Kingdom has $2.5 trillion worth of untapped resources, including gold, copper, lithium, and rare earth elements, which are vital to energy transition and global industry. Regulatory reforms and integrated industrial zones are opening this frontier market to international investment.”

The comments from the Oliver Wyman official come after Saudi Arabia launched a new incentive package to attract foreign direct investments into the nation’s mining sector.

The Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry, the Saudi Press Agency reported in March.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region, also echoed similar views and said that the mining sector could become a game changer in Saudi Arabia’s economic diversification journey.

“The new mining law and exploration incentives are attracting serious interest, and the Kingdom is positioning itself as a global mining hub with reliable data, infrastructure, and long-term demand,” said Alnesayan.

El-Asmar further said that Saudi Arabia’s Ras Al-Khair and Wa’ad Al Shamal offer integrated infrastructure, rail and port access, and proximity to downstream processing, making them investment-friendly destinations for international entities.

“These ecosystems support refining, smelting, and metal fabrication. A pipeline of investable projects, from exploration to processing, is backed by national institutions including the Public Investment Fund and industrial champions,” said the Oliver Wyman official. 

Global players are investing in everything from gaming and digital media to smart cities and AI.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region

He added: “As global supply chains seek secure mineral sources, Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Its location between Africa, Asia, and Europe gives investors access to regional growth markets.”

In January, speaking at the Future Minerals Forum, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s broader plans to establish mining as the third pillar of its industrial economy.

In May, a report released by the General Authority for Statistics revealed that net FDI into Saudi Arabia stood at SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months.

GASTAT also added that this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.

This development comes after Saudi Arabia rose to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April.

This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.

Kearney added that the ranking reflects the nation’s bold, reform-driven approach to building an internationally competitive, future-ready economy.

Other crucial sectors

El-Asmar also outlined other crucial areas that could drive FDI into Saudi Arabia in the coming years.

According to the Oliver Wyman official, sectors including pharmaceuticals, biotechnology and petrochemicals are also expected to see foreign funds pour into the Kingdom.

He added: “In petrochemicals, Saudi Arabia is expanding beyond crude oil into speciality chemicals, high-performance plastics, and packaging, backed by integrated feedstock and logistics infrastructure.”

El-Asmar said that Saudi Arabia is ranked second among G20 countries in digital competitiveness, and the Kingdom has strong infrastructure, forward-looking regulations, and digital competitiveness capable of drawing FDI in AI, cloud, cybersecurity, smart city tech, fintech, and health tech.

“Incentives include regulatory sandboxes, IP protections, and access to a growing consumer and enterprise market, making the Kingdom attractive for global tech firms and startups,” said El-Asmar.

Alnesayan also highlighted the role of technology and entertainment sectors in materialising Saudi Arabia’s FDI goals.

“Entertainment and tech reflect Saudi Arabia’s new growth story. Global players are investing in everything from gaming and digital media to smart cities and AI. These sectors are fueling job creation, innovation, and a dynamic consumer market,” said the Arthur D. Little official.

El-Asmar agreed that the entertainment sector is central to Saudi Arabia’s diversification and FDI strategy, reflecting cultural openness and rising domestic demand.

“With a population of 35 million and rising demand for premium experiences, the Kingdom is seeing growth in cinemas, theme parks, live events, and content production. Major international brands are entering the market, supported by co-investment and giga-projects like Qiddiya,” he said.

RHQ program and FDI

Alnesayan believes that Saudi Arabia’s regional headquarters program is emerging as one of the key drivers of FDI in the Kingdom.

“The RHQ Program is not just about relocating offices — it’s about anchoring decision-making in Riyadh. That brings investment, talent, and deeper regional integration. We’ve already seen over 600 companies commit, and the momentum is accelerating,” he said.

Saudi Arabia’s regional headquarters program offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for international businesses.

Some of the noted firms that relocated their headquarters to the Kingdom are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK.

El-Asmar also highlighted the importance of the RHQ program and said that Saudi Arabia’s location — at the crossroads of Europe, Asia, and Africa — makes it an ideal base for regional operations.

Potential challenges

Despite all these positive developments, experts also outlined some of the challenges Saudi Arabia could face in achieving its FDI targets within the stipulated timeline.

“The fundamentals are strong, but challenges remain — global volatility, talent gaps, and the need for ongoing regulatory clarity. But the Kingdom is addressing these head-on through reforms, infrastructure investment, and strategic partnerships that reduce risk and increase investor confidence,” said Alnesayan.

El-Asmar said that foreign investors need predictability, and to address this, Saudi Arabia has launched the Investor Confidence Protection Mechanism and Investor Council, alongside legal reforms including English-language documentation and digital licensing portals.

“High operational costs and complex procedures persist in some sectors. Special Economic Zones, tax incentives, and digital services are helping to reduce these barriers and simplify market entry,” said El-Asmar.

He concluded: “While these challenges are real, Saudi Arabia’s strategic reforms, long-term vision, and favorable location continue to make it one of the world’s most promising emerging FDI destinations.”