Business

Foreign Investment in Saudi stocks Rises 364.1919 billion Riyals

The Saudi stock market has witnessed a significant influx of foreign investments. With a total of 364.19 billion Riyals, this marks a pivotal change in the economic landscape of the Kingdom.

Historical Perspective

Previously, foreign direct investment (FDI) in Saudi Arabia faced challenges due to political factors and lower oil prices.

However, the trend reversed with economic diversification and new projects outside the oil and gas sector.

FDI inflows remained resilient, even during the pandemic, increasing significantly over the years​​.

Vision 2030 and Government Initiatives

A key driver behind this surge is Saudi Arabia’s Vision 2030, aiming to end reliance on fossil fuels and targeting USD 100 billion in annual FDI by 2030.

The government’s adoption of seven “Guiding Principles for Investment Policymaking” and the launch of a Special Economic Zone (SEZ) program focusing on non-traditional industries have been crucial.

These efforts demonstrate the Kingdom’s commitment to creating a diverse and sustainable economy​​.

Legal, Sectoral Reforms

To facilitate this growth, legal reforms were implemented. In 2018, full foreign investments were approved in several sectors, including transport and real estate. Foreign investors can now own property for company activities and repatriate their money, subject to certain criteria​​.

Updated Methodology, Statistics

In 2023, the Ministry of Investment introduced a new methodology, endorsed by the IMF, for calculating FDI. This method offers more precise data, revealing that the FDI hit 775 billion Saudi Riyals in 2022.

Growth in Stock Market Investments

The foreign investment in the Saudi stock market increased by more than 150% by the end of Q2 2021, compared to late 2018. Sectors like banking, basic materials, energy, and communications attracted the most foreign investment.

In conclusion the remarkable growth in foreign investment in Saudi stocks is a testament to the Kingdom’s proactive measures to diversify its economy and attract global investors.

This surge not only boosts the stock market but also plays a vital role in the broader economic in Saudi Arabia.

Related Topics :

Foreign investment licenses in Saudi Arabia record a historical level in Q1

Saudi stocks achieve the best semi-annual performance in 16 years

Saudi Public Investments tripled its ownership of US stocks to $43 billion

 

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