Saudi Arabia jumps to 13th place globally in attracting FDI

Saudi Arabia jumped to 13th place globally in attracting foreign direct investment in 2025, climbing from 17th the previous year, according to the UN Conference on Trade and Development.

According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), Saudi Arabia attracted $33 billion in foreign direct investment (FDI) in 2025, an increase of 51.14% from 2024.

The strong growth reflects Saudi Arabia’s continued efforts to attract long-term foreign investment under its Vision 2030 plan, which aims to diversify the economy and reduce its dependence on oil revenue. As part of this strategy, the Kingdom has set a target of attracting $100 billion in annual FDI by 2030.

The United Arab Emirates (UAE) remained ninth among the world’s top destinations for FDI, attracting $48 billion in 2025, up from $46 billion a year earlier.

UNCTAD said the UAE and Saudi Arabia recorded strong FDI growth, supported by investments in the energy sector, infrastructure projects, and economic diversification efforts. Qatar also saw a significant increase in foreign investment, with FDI rising from $460 million in 2024 to $3 billion in 2025. The growth was driven by investments in the chemicals, energy, and information and communication services sectors.

The report added that West Asia continues to benefit from its strategic location as a trade and investment corridor linking Asia, Europe, and Africa. However, it warned that rising geopolitical tensions could delay announced projects and increase risks to future foreign investment, particularly in the energy, transportation, and logistics sectors.

Earlier this month, the General Authority for Statistics reported that Saudi Arabia’s FDI inflows rose 2.4% year over year to SR26.6 billion ($7.1 billion) in the first quarter of 2026.

UNCTAD also reported that global FDI inflows increased 6% to $1.62 trillion in 2025 after declining for two consecutive years.

The growth was uneven across regions. Developed economies recorded an 11% increase in FDI to $723 billion, while developing economies posted a modest 2% increase to more than $901 billion.

The United States remained the world’s largest destination for foreign direct investment, attracting $277 billion despite a 2.46% decline from the previous year.

Singapore ranked second with $151 billion in FDI, followed by Hong Kong with $116 billion, China with $105 billion, and Brazil with $77 billion.