Saudi Arabia Foreign Direct Investment Hits $240bn As Over 800 Reforms Lure Businesses

Saudi Arabia is seeing the benefits of more than 800 legal reforms as it attracts record foreign direct investments.

With more than 500 foreign companies setting up regional headquarters in the Kingdom and a tenfold increase in investment licences the Kingdom is becoming a hub for international business.

At the 2025 Budget Forum, Assistant Minister of Investment and CEO of the Saudi Investment Marketing Authority (SIPA) Ibrahim Almubarak has emphasised the Kingdom of Saudi Arabia’s rapid progress in attracting investments.

Investment in Saudi Arabia

He highlighted more than 800 reforms, including updates to citizen transactions, bankruptcy laws, joint government-private projects, and government procurement processes, which have elevated the Kingdom to 16th place on the World Competitiveness Ranking (IMD).

SIPA continues its efforts to enhance business conditions and train local workers, thereby attracting greater investment.

A revised investment law, set to take effect early next year, will strengthen legal protections for property ownership, equitable dealings, investment management, and intellectual property rights, benefitting both Saudi and foreign investors.

Foreign direct investment (FDI) has surged, exceeding the National Investment Strategy’s 2023 goal by 16 per cent, positioning KSA as second among G20 countries in FDI growth.

Globally, the Kingdom ranks fourth in total foreign investment growth, which has reached nearly SR900bn ($240bn), a 13 per cent increase. Foreign investors have allocated more than SR350bn ($93bn) to KSA financial markets.

Thanks to the market’s appeal and stability, more than 500 foreign companies have established regional headquarters in the Kingdom, surpassing the 2023 target.

Additionally, the number of investment licences issued has increased tenfold since the launch of Saudi Vision 2030, now exceeding 37,000.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.
RECENT NEWS

M&A In The Middle East Surges 260% To $53bn As Dealmakers Drive Energy And Tech Expansion

Middle East M&A deal values jump 260% to $53bn in 2025, led by energy consolidation and fast-growing technology and... Read more

UAE To Apply Reverse VAT Charge On Scrap-metal Trading From January 2026

New Cabinet decision shifts VAT accounting to buyers in a move aimed at curbing fraud and strengthening tax compliance ... Read more

KKR Makes First Saudi Investment With Financing For Key Desalination Plant

The global investment firm KKR has partnered with ACWA Power to support long-term water security under Vision 2030 The ... Read more

UAE Announces Updated Excise Tax Rules

UAE issues Cabinet Resolution No. 198 of 2025 amending Excise Tax rules to improve compliance and enhance procedures Th... Read more

DIFC Joins Global Privacy Forum To Strengthen Cross-border Data Governance

Membership of the Global Cross-Border Privacy Rules Forum reinforces Dubai’s ambition to be a leading hub for the dig... Read more

Mubadala Completes Acquisition Of Service Logic In Partnership With Bain Capital

Service Logic is headquartered in Charlotte, North Carolina, and is a leader in comprehensive commercial HVAC and build... Read more