Driving the news: Foreign direct investment (FDI) inflows into Saudi Arabia jumped 33.5% in 2025. The total reached SAR 159 billion (about $42.4 billion), GASTAT’s annual data show.
Why it matters: The surge signals strong global confidence in Vision 2030. Moreover, it shows that the Kingdom’s new laws, special zones and infrastructure are turning investor interest into real capital.
Construction Leads the Inflows
The construction sector drew the largest inflows, with SAR 34 billion (about $9.1 billion). Meanwhile, manufacturing held 27% of the FDI stock at year-end. The lead fits the Kingdom’s wider build-out of housing, logistics and industrial zones.
Zoom in: The Saudi Central Bank (SAMA) reports that the total FDI stock reached SAR 1.142 trillion ($304.5 billion) by the end of the second quarter of 2026. That compares with SAR 1.025 trillion ($273.26 billion) a year earlier. As a result, the stock grew 11.4% year on year, a gain of SAR 117.17 billion ($31.25 billion).
The upward trend also continued from quarter to quarter. The stock rose 1.7% from SAR 1.123 trillion ($299.41 billion) at the end of the first quarter of 2026. In addition, FDI now makes up 32.25% of all foreign investment in the Kingdom.
Momentum built through 2025. Net inflows in the fourth quarter alone jumped 90% year on year to SAR 48.4 billion ($12.9 billion). The jump also builds on a strong 2024. Inflows rose 24.2% that year to SAR 119.2 billion ($31.8 billion), and they beat the SAR 109 billion target ($29.1 billion).
International data back the trend. UNCTAD’s World Investment Report 2026 ranks Saudi Arabia 13th worldwide for FDI inflows in 2025, up four places from 17th. The Kingdom also placed second in the Middle East and North Africa, behind the UAE. UNCTAD measures flows on its own basis, so its figure of $32.6 billion differs from GASTAT’s.
By the numbers:
- 2025 FDI inflows: SAR 159 billion ($42.4 billion), up 33.5%.
- Construction inflows: SAR 34 billion ($9.1 billion), the highest of any sector.
- Manufacturing share of FDI stock: 27%.
- FDI stock, end of Q2 2026: SAR 1.142 trillion ($304.5 billion), up 11.4% year on year.
- Annual gain in FDI stock: SAR 117.17 billion ($31.25 billion).
- FDI stock, end of Q1 2026: SAR 1.123 trillion ($299.41 billion).
- FDI share of total foreign investment: 32.25%.
- 2024 inflows: SAR 119.2 billion ($31.8 billion), up 24.2%.
- 2025 inflow target: SAR 140 billion ($37.3 billion).
- 2030 annual target: SAR 388 billion (about $103.5 billion).
- UNCTAD ranking for 2025: 13th globally, up from 17th.
- Regional headquarters: more than 600 multinationals.
- 2040 FDI target for special economic zones: SAR 84 billion ($22.4 billion).
How Laws, Zones and Infrastructure Open the Door
The big picture: The Kingdom has rebuilt its investment framework in just a few years. First, the new Investment Law, published on Aug. 11, 2024, replaced the foreign investment law of 2000. It applies to Saudi and foreign investors alike. Next, investors now register directly with the Ministry of Investment and can use arbitration, mediation and conciliation to settle disputes.
Furthermore, the Regional Headquarters (RHQ) program keeps drawing global firms. It has surpassed its target, with more than 600 multinational companies signing up. In the first half of 2024 alone, 184 foreign companies moved their regional headquarters to the Kingdom. The program also offers extensive tax exemptions.
Zoom in on the zones: Crown Prince Mohammed bin Salman launched four special economic zones in Riyadh, Jazan, Ras Al-Khair and King Abdullah Economic City. The zones offer world-class infrastructure for local and international investors. In addition, Riyadh has hosted an integrated logistics zone since 2022.
Incentives back that infrastructure. Finance Minister Mohammed Al-Jadaan said the zones will offer a 20-year tax reduction and a permanent VAT exemption on transactions between zone entities. Likewise, the Cabinet approved regulations for the zones in Jazan, cloud computing, King Abdullah Economic City and Ras Al-Khair. Those rules take effect in April 2026. They also allow multilingual trade names and exempt zone investments from some Companies Law provisions. By 2040, the Kingdom expects these zones to add SAR 97 billion ($25.9 billion) to GDP.
Property reform adds another draw. The foreign ownership law took effect in January 2026. It lets non-Saudis own residential, commercial, industrial and agricultural property, plus development land. Riyadh and Jeddah lead the rollout, while Makkah and Madinah carry special conditions. Meanwhile, capital market liberalization and a privatization strategy have widened the entry points for foreign capital.
What’s next: The Ministry of Investment says the Kingdom has beaten its FDI goals for four consecutive years. Annual targets climb from SAR 140 billion in 2025 to SAR 388 billion by 2030, which would bring annual FDI to roughly $100 billion. Because 2025’s SAR 159 billion topped that year’s goal, the Kingdom enters the next stage ahead of schedule.
