As per the GASTAT, the net inflows of FDI also fell by 51.9% compared with Q4 2025, when the figures reached SR48 billion.

However, there was a positive growth in total foreign direct investment (FDI) inflows into the Saudi economy during the first quarter of 2026, which rose to SR26.6 billion, marking a 2.4% increase from SR26 billion recorded in Q1 2025.

However, total inflows declined by 49.9% compared with the fourth quarter of 2025, when they stood at SR53.1 billion.

“Conversely, outward foreign direct investment (FDI) flows increased significantly by 50.6% during the first quarter of 2026, reaching SR 3.5 billion, compared with approximately SR 2.3 billion in the first quarter of 2025,” GASTAT stated further.

The mixed FDI data won’t augur well for the Kingdom’s broader efforts under the “Vision 2030” agenda, under which the country is trying to attract long-term foreign capital as it diversifies its economy beyond oil revenues. Under the program, the country is targeting USD 100 billion in annual foreign direct investment by 2030.

The GASTAT bulletin defines FDI as one that “reflects a long-term relationship and ongoing interest in economic entities residing in an economy other than the Saudi economy.”

“This means that the foreign investor, individually or as a group of foreign investors, owns 10% or more of the voting power of shareholders’ equity, thus enabling them to exercise a degree of control or influence over the decision-making process to serve their interests,” the definition reads further.

The kingdom has continued to strengthen its investment environment through regulatory reforms, opening sectors including tourism, renewable energy, technology, and logistics to greater foreign participation.

Under Vision 2030, Riyadh aims to increase FDI’s contribution to GDP from 3.8% to 5.7% while positioning the nation as a global investment hub.

The administration has also introduced a new “Investment Law” to strengthen investor protections, apart from simplifying licensing procedures and ensuring equal treatment for local and foreign investors, thereby reinforcing efforts to attract international capital across strategic sectors.

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