Saudi Arabia’s strategic reforms continue to bear fruit as foreign direct investment (FDI) into the Kingdom surged during the third quarter. According to the latest government data, net FDI inflows reached SAR24.9 billion ($6.6 billion) between July and September 2025. This figure represents a significant 34% increase when compared to the SAR18.5 billion recorded during the same period last year.
Bold Strides Toward Vision 2030
The Saudi government aggressively pursues an ambitious target of $100 billion in annual foreign direct investment by the year 2030. Consequently, officials are implementing sweeping legislative reforms to simplify the entry process for international funders and global corporate entities.
Last February, the Kingdom introduced a landmark investment law designed to unify regulations and provide a more stable environment. These efforts specifically target high-growth sectors that align with the core objectives of the Vision 2030 economic blueprint.
The Saudi Cabinet approved on Tuesday comprehensive regulatory frameworks for several key special economic zones across the diverse national landscape. These zones include Jazan, the Information Cloud Computing Zone, King Abdullah Economic City, and the industrial hub of Ras Al-Khair, with Investment Minister Khalid Al-Falih expecting these regulations to come into full effect starting in April of the year 2026.
This move will significantly ease licensing procedures, allowing international companies to establish operations with much greater speed and efficiency.
Analyzing the Inflow Dynamics
Total FDI inflows for the third quarter of 2025 reached SAR27.7 billion, marking a 4.4% rise from last year. However, the dramatic jump in net inflows primarily stems from a massive 66% reduction in capital flowing out.
Outflows plummeted from SAR8 billion in the third quarter of 2024 to just SAR2.7 billion during the current reporting period. This trend highlights a growing confidence among investors who choose to keep their capital working within the Saudi economy.
Total FDI inflows for the first nine months of 2025 reached SAR80.5 billion, showing steady progress toward the previous year’s total.
Meanwhile, the Public Investment Fund increasingly prioritizes domestic assets over foreign holdings to stimulate local industries and create sustainable jobs. This inward shift reflects a broader strategy to transform the Kingdom into a global powerhouse for logistics, technology, and manufacturing.
As the regulatory environment matures, the Kingdom expects even higher levels of engagement from the world’s leading financial institutions.
