Net Foreign Direct Investment in Saudi Arabia Drops 19.5% in Q2

Net foreign direct investment flows into Saudi Arabia fell by 19.5% year-on-year in the second quarter of 2026, reaching 19.1 billion riyals, equivalent to $5.1 billion. Flows also declined by 15.8% compared to the first quarter of the same year, indicating a continuous slowdown throughout the year.

Data from the General Authority for Statistics showed that total inflows reached 22.3 billion riyals ($5.9 billion), while outflows totaled 3.2 billion riyals (approximately $853 million). Net flows are calculated by subtracting outflows from inflows; therefore, an increase in outflows reduces the final figure shown in statistics, with the difference between the two numbers reflecting the actual volume of funds that remained in the economy during the quarter.

For the first half of 2026, net foreign direct investment reached 41.8 billion riyals ($11.1 billion), a year-on-year decline of 11.8%. This drop points to a slowdown in the pace of attracting foreign capital, at a time when economic diversification plans rely on investment inflows into non-oil sectors.

This performance compares with the target set by the National Investment Strategy, which aims for annual FDI inflows of 388 billion riyals by 2030. The Economy Middle East platform reported these figures from General Authority for Statistics data, noting that the Kingdom is continuing its efforts to attract investments within the targets of Vision 2030. Economists monitor these numbers closely as they serve as an indicator of the success of diversification plans in attracting foreign capital away from the oil sector.

What do these terms mean?

Foreign Direct Investment (FDI): Investment made by companies or individuals from outside the country in projects and assets within it, including building factories or acquiring stakes in existing companies. Net flows: The difference between funds entering the country and funds leaving it, an indicator measuring the health of investment attraction. Gross inflows: All funds entering the country before deducting what leaves it, differing from net flows which show the final outcome.