Saudi Arabia has strengthened its position on the global investment map, advancing to 13th place worldwide in attracting foreign direct investment (FDI) last year, up from 17th place in 2024, according to the World Investment Report 2026 issued by the United Nations Conference on Trade and Development (UNCTAD). The improvement was driven by a 53 percent increase in net FDI inflows, which reached $32.6 billion.
The continued progress reflects the success of the country's economic reforms and Vision 2030 in transforming Saudi Arabia into a more competitive destination for global capital at a time when the international economy is slowing and competition to attract investment is intensifying.
The Kingdom's investment surge comes as the global economy faces heightened uncertainty and tighter monetary policies, leading to slower foreign investment flows across many emerging and advanced markets. Under its National Investment Strategy, Saudi Arabia aims to attract more than $100 billion in annual foreign direct investment by 2030. This goal is supported by a package of reforms that includes the introduction of a new investment law, the expansion of special economic zones, and streamlined regulatory procedures for foreign ownership.
The World Investment Report also highlights the growing investment opportunities Saudi Arabia offers in the technology and artificial intelligence sectors, supported by its advanced digital infrastructure and an environment that is well suited for future industries. At the same time, the country continues to build an integrated industrial and mining ecosystem that creates promising investment opportunities across future value chains.
Investor Confidence
In this context, former Shura Council member and economic specialist Dr. Fahad bin Juma said that the progress made in attracting foreign investment over recent years was not solely the result of financial incentives, but stemmed from a fundamental shift in the philosophy of managing the Saudi economy. He emphasized that foreign investors first look for an efficient regulatory and legislative environment with fast and effective procedures that match the size of the market, an area in which Saudi Arabia has made rapid progress.
Bin Juma told Asharq Al-Awsat that the sharp increase in investment inflows reflects growing confidence in Saudi Arabia's investment environment as much as it reflects the strength of the economy itself.
He added that regulatory reforms, including updates to the investment law, easier business procedures, stronger investor protections, expanded partnerships with the private sector, and linking investment to promising sectors such as industry, mining, technology, tourism, and logistics, have transformed Saudi Arabia from a market that attracted capital for limited opportunities into a long term investment platform.
He added that the challenge in the next phase is no longer limited to attracting new investments. It also lies in retaining existing investors and encouraging them to expand their operations, further strengthening Saudi Arabia's position among the world's leading investment destinations.
Diversifying Sources of Income
For his part, legal consultant and professor of commercial law Dr. Osama bin Ghanem Al Obeidi told Asharq Al-Awsat that Saudi Arabia's rise in the global investment rankings demonstrates the success of the Kingdom's investment policy under Vision 2030, which aims to diversify sources of income and reduce reliance on oil.
According to Al Obeidi, the Kingdom seeks to attract foreign capital and has introduced numerous legislative reforms that support greater foreign investment inflows. These measures encourage international investors to enter the Saudi market by allowing foreign ownership of up to 100 percent in many sectors.
Al Obeidi added that the new Investment Law has played a major role in attracting foreign investment by ensuring equal treatment for investors, whether Saudi nationals or foreigners, while also protecting property rights and providing mechanisms for dispute resolution through courts and arbitration bodies.
He continued that, under the new framework, the Kingdom offers foreign investors a range of incentives through specialized programs, including the Regional Headquarters Program, which grants global companies relocating their regional headquarters to Riyadh incentives such as income tax and withholding tax exemptions for up to 30 years. In addition, the Premium Residency Program provides, subject to specific conditions, benefits related to residency, mobility, and real estate ownership in the Kingdom.
Technology, Industry, and Mining
Saudi Arabia continues to develop advanced digital infrastructure that supports investment growth in technology and artificial intelligence while strengthening the market's readiness for high growth sectors. Clear policies, a more developed regulatory environment, and integrated enablers all contribute to attracting capital into the technology sector.
The Kingdom is reinforcing its position as an investment platform that supports innovation, enables companies to expand, and connects them with future markets and opportunities. At the same time, Riyadh continues to build an integrated industrial ecosystem that links mineral resources with advanced manufacturing, enhancing value creation and supporting economic diversification. Investment incentives, infrastructure, and the continued improvement of the investment environment are also increasing the Kingdom's appeal to investors in industry and mining.
Investment opportunities extend from resource extraction and processing to manufacturing industries, components production, and final manufacturing. The industrial and mining sectors strengthen Saudi Arabia's position in strategic industries while creating opportunities for long term growth driven by production and innovation.
