Saudi Arabia’s foreign direct investment (FDI) balance had increased by 61% over the same period in 2023, reflecting the high confidence international investors are putting in the Kingdom’s investment climate.
In the first quarter of 2024, foreign direct investment flows increased by 0.6% as compared to the same period last year, according to a recent report released by the Ministry of Investment.
Excluding licenses associated with the campaign to combat violators of the Commercial Concealment Law, the report showed that the ministry issued 2,728 investment licenses in the second quarter of 2024 on an annual basis. This illustrates the Kingdom’s status as a desirable location for investors, benefiting from significant competitive advantages exemplified by a steady and encouraging business climate.
In comparison to the same period in 2023, total fixed capital formation increased by 7.9% in the first quarter of 2024. This is explained by the fact that during the same period, the fixed capital formation of the government and non-government sectors increased by 17% and 7%, respectively.
According to the report, the majority of economic activities saw positive annual growth rates in the first quarter of 2024. The activities related to wholesale and retail trade, restaurants, and hotels had the highest growth rates, at 5.9%; these were followed by transportation, storage, and communications, at 5%.
The sectors of agriculture, forestry, and fisheries as well as collective, social, and personal services saw growth of 4.5% and 4.4%, respectively.
Eng. Khalid Al-Falih, the Minister of Investment, and Maris Sangiampongsa, the Minister of Foreign Affairs of Thailand, attended the Saudi-Thai Investment Forum, which was recently held in Riyadh by the Ministry of Investment in collaboration with the Thai Investment Board and the Thai Embassy in Saudi Arabia. Participating in the event were several government officials, CEOs of significant corporations, and private sector representatives from both nations.
In order to strengthen trade exchanges and economic ties between the Kingdom and Thailand, the Thai Investment Board announced during the forum that it would open an office in Riyadh.
Also to improve trade cooperation and advance trade and investment relations between the two nations, the forum saw the signing of eleven agreements and memoranda of understanding in a variety of fields, including agriculture, food, tourism, infrastructure, and energy.