Figures of net foreign direct investment (FDI) flows published in the fourth quarter of 2023, which amounted to about 13 billion riyals ($3.4 billion), indicate that the Saudi government succeeded in creating a flexible investment environment in accordance with global standards.
Foreign direct investment flows recorded very high levels in the fourth quarter, according to the figures of the General Authority for Statistics (GASTAT). Those amounted to around SAR 19 billion ($5 billion), with an increase of 16.6 percent compared to the third quarter of 2023.
The Saudi government has recently presented a package of new tax incentives for a period of 30 years to support the program to attract the regional headquarters of international companies, including exemption from income tax.
Economic analyst at King Faisal University Dr. Mohammad bin Dulaim Al-Qahtani told Asharq Al-Awsat that the flow of foreign investment into the country was expected to exceed SAR50 billion in the fourth quarter of 2026, with the completion of the infrastructure for a number of giant projects, including NEOM, the Red Sea tourism projects, and others.
He said the Kingdom will witness a major development as the Saudi economy has multiple resources, including oil, gas, minerals, gold, cultural and religious tourism, as well as sports and non-oil industries.
Dr. Salem Bajajah, an academic at King Abdulaziz University, said that the Saudi market is attractive for investment in several promising sectors, including tourism, entertainment, sports, and nutrition.
He attributed the increase in foreign direct investment flows in the Kingdom to companies making several lucrative returns, in addition to the government incentives that turn the investment environment attractive to international companies.