Riyadh, Saudi Arabia — Foreign Direct Investment inflows into Saudi Arabia hit SAR 17 billion in the third quarter of 2023, a decrease of 14.4 percent compared to the second quarter, the Kingdom’s General Authority for Statistics (GASTAT) said.
The total FDI outflows reached SAR 5 billion, a decrease of 22.5 percent compared to the Q2 of the same year. The net flows of FDI in Saudi Arabia amounted to more than SAR11 billion, a decrease of 10 percent compared to the Q2 of the same year.
GASTAT released the annual statistics concerning foreign direct investment (FDI) for the year 2022 and Q3 of 2023 in Saudi Arabia. This is the first time GASTAT arrives at these figures with the calculation methodology it adopted in October last year, said GASTAT.
Total FDI in Saudi Arabia reached SAR762 billion at the end of 2022, compared to SAR659 billion in 2021. FDI total inflows amounted to SAR123 billion, a 20 percent increase compared to 2021, while the FDI total outflows reached SAR17 billion, an increase of 12 percent compared to 2021.
The net flows of FDI in Saudi Arabia amounted to SAR105 billion, compared to SAR87 billion in 2021.
GASTAT President Dr. Fahad bin Abdullah Aldossari said that Saudi Arabia’s announcement of FDI for the first time adds a new global standard to improve the quality and transparency of the methodology for calculating FDI statistics. This is achieved by providing globally leading levels of transparency and governance.
He also highlighted that GASTAT, the IMF, the Central Bank and the Ministry of Investment helped reach the methodology adopted to calculate the above statistics, adding that it will help investors make decisions based on reliable results and the country to design investment policies that attract more foreign investment and inform investors about the best investment opportunities in Saudi Arabia.
According to the authority, the new methodology was adopted after aligning with IMF and the approval obtained at the United Nations Conference on Trade and Development (UNCTAD), in order to apply the best international practices, as given in the IMF Balance of Payments Manual. Moreover, the World Bank supported the IMF recommendations in its recent report on Saudi Arabia, which form the basis of the new methodology.
The new methodology, said the authority, will contribute to enhancing governance levels and improving the quality of transparency in the statistical data and information for calculating direct foreign investment indicators as an investment destination in Saudi Arabia.
FDI Index includes some 19 new indicators as part of the new methodology approved by IMF, including the balance and inflows of FDI by economic activity, investing countries, and regions of Saudi Arabia, for the period 2007 to 2022.