Saudi Arabia recorded strong Saudi FDI growth during the third quarter of 2025, reflecting rising investor confidence. Official data showed foreign direct investment net inflows reached SAR24.9 billion during the reporting period. This result marked a sharp increase compared with the same quarter last year. It also confirmed continued momentum in the kingdom’s economic diversification efforts.
Data released by the General Authority for Statistics highlighted a 34.5 percent annual increase in net inflows. During the third quarter of 2024, net inflows stood at SAR18.5 billion. The latest figure also showed a 5.2 percent rise from the previous quarter. In the second quarter of 2025, net inflows reached SAR23.7 billion.
Foreign direct investment reflects long term economic involvement by investors outside the domestic economy. It shows sustained interest rather than short term financial activity. According to official definitions, foreign investors must hold significant ownership stakes. These stakes usually reach at least ten percent of shareholder voting rights.
Gross foreign direct investment inflows also recorded positive movement during the third quarter period. GASTAT reported inflows of approximately SAR27.7 billion in the third quarter. This figure represented a 4.4 percent increase compared with the same quarter of 2024. During that earlier period, inflows totaled around SAR26.5 billion.
The data also showed quarter on quarter improvement in gross inflows. The second quarter of 2025 recorded approximately SAR26.8 billion in inflows. Therefore, the third quarter result reflected a 3.3 percent rise. These gains further support Saudi FDI growth trends observed throughout the year.
At the same time, foreign direct investment outflows declined sharply during the reporting period. Outflows totaled approximately SAR2.7 billion in the third quarter of 2025. This marked a significant drop compared with SAR8 billion recorded during the same quarter last year. The decline represented a year on year decrease of 65.7 percent.
Quarterly data also confirmed a reduction in outward investment activity. During the second quarter of 2025, outflows reached around SAR3.1 billion. The third quarter figure therefore showed an 11.4 percent decline. This trend suggests stronger capital retention within the domestic economy.
Analysts often view rising net inflows and falling outflows as positive signals. These trends indicate increased foreign confidence and improved local investment conditions. Saudi FDI growth aligns with broader economic reforms and regulatory improvements. It also reflects continued progress under long term development strategies.
Overall, the latest figures highlight Saudi Arabia’s strengthening investment position regionally. The results support the kingdom’s goal of attracting stable and long lasting foreign capital. Continued inflow growth may further support employment, infrastructure, and private sector expansion. Saudi FDI growth remains a key indicator of economic momentum moving forward.
