RIYADH: Saudi Arabia’s foreign direct investment has quadrupled, surpassing its Vision 2030 targets as the Kingdom’s economy continues to diversify away from oil, Investment Minister Khalid Al-Falih said.
Speaking at the ninth edition of the Future Investment Initiative in Riyadh, Al-Falih said the surge in investment reflects the success of Vision 2030, describing the Kingdom’s transformation plan as “a reality, not a dream,” according to the Saudi Press Agency.
This comes as foreign direct investment in the Kingdom grew by 24 percent to $31.7 billion in 2024, establishing it as a major global destination, supported by its megaprojects and preparations to host Expo 2030 and the 2034 FIFA World Cup.
“He pointed out that the non-oil economy has risen to (5 percent), indicating that the past two years have witnessed more new and promising investment opportunities in the Kingdom, including artificial intelligence and acceleration of digital transformation, pointing out that major national projects are continuing their work and some are preparing to open their doors,” the SPA report stated.
The minister outlined a fundamental shift in the nation’s economic structure, revealing that 40 percent of the state’s budget and expenditures are now financed by non-oil revenues. He further emphasized that a staggering 90 percent of all FDI flowing into the Kingdom is directed toward non-oil sectors.
Al-Falih emphasized that the Kingdom’s economy “is no longer oil-based,” highlighting rapid progress in advanced manufacturing, technology, tourism, entrepreneurship, deep tech, and venture capital.
He also highlighted the Kingdom’s ability to navigate a series of global obstacles, including the COVID-19 pandemic, oil price fluctuations, and regional tensions. He credited this resilience to the nation’s substantial financial reserves and overall stability, which he described as a key strength.
The minister also noted that major giga-projects are continuing their work, with some preparing to open their doors. Al-Falih reaffirmed Saudi Arabia’s strong belief in powerful partnerships between the government and the private sector, as well as with foreign investors.
According to Argaam, the minister stated that with many large-scale projects, like the Red Sea Project, now at an advanced stage, the Kingdom should scale back government and Public Investment Fund spending and allow the private sector to lead future investment.
“These assets should now be transferred to the market to observe how they perform under private sector management,” Argaam reported Al-Falih as saying.
Al-Falih emphasized that the Kingdom is committed to reducing barriers to doing business, signaling a continued open-door policy for international capital.
Echoing this sentiment, other participants agreed that such collaborations are essential for achieving goals in a shorter timeframe. They stressed that sectors related to energy remain particularly promising and ripe with innovation capable of building a better future for humanity.
