Foreign direct investment (FDI) flows to Saudi Arabia increased for the second consecutive year by 6% to $4.56 billion, compared to $4.25 billion in 2018, according to the latest UNCTAD World Investment Report 2020.
The new investment policy and a broader economic reform programme under the Saudi Vision 2030 initiative are intended to improve the country’s investment environment and promote economic diversification.
FDI outflows dropped to $13.19 billion in 2019, from $22.99 billion a year earlier.
|
FDI Inflows and Outflows - Saudi Arabia from 2014 – 2019($ bln) |
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|
Year |
Inflows |
Change% |
Outflows |
Change |
|
2014 |
8012 |
-- |
5396 |
-- |
|
2015 |
8141 |
+1.58% |
5390 |
(0.11%) |
|
2016 |
7453 |
(9.23%) |
8936 |
+39.68% |
|
2017 |
1419 |
(425.23%) |
7280 |
(22.75%) |
|
2018 |
4247 |
+66.80% |
22987 |
+68.33% |
|
2019 |
4562 |
+6.31% |
13185 |
(74.34%) |
Total FDI inflows to Saudi Arabia rose to $236.17 billion by the end of 2019, compared to outflows of $123.05 billion.
|
FDI Balances – Saudi Arabia ($ mln) |
|||
|
Year |
Inflows |
Outflows |
Net Flows |
|
2000 |
17577 |
5285 |
12292 |
|
2010 |
176378 |
26528 |
149850 |
|
2019 |
236166 |
123050 |
125130 |
The COVID-19 crisis will cause a dramatic fall in FDI. Global FDI flows are forecast to decrease by up to 40% in 2020, from their 2019 value of $1.54 trillion.
“This would bring FDI below $1 trillion for the first time since 2005. FDI is projected to decrease by a further 5% to 10% in 2021 and to initiate a recovery in 2022. A rebound in 2022, with FDI reverting to the pre-pandemic underlying trend, is possible, but only at the upper bound of expectations,” UNCTAD said.
The outlook is highly uncertain. Prospects depend on the duration of the health crisis and on the effectiveness of policy interventions to mitigate the economic effects of the pandemic. Geopolitical and financial risks and continuing trade tensions add to the uncertainty.
Elsewhere, the UAE recorded the highest FDI inflows in 2019:
|
Arab Countries In Terms of FDI Inflows in 2019 ($ mln) |
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|
Country |
2018 |
2019 |
Change% |
|
UAE |
10385 |
13787 |
+33% |
|
Mauritania |
773 |
885 |
+14% |
|
The Comoros |
7 |
8 |
+14% |
|
Egypt |
8141 |
9010 |
+11% |
|
Somalia |
408 |
447 |
+10% |
|
Saudi Arabia |
4247 |
4562 |
+7% |
|
Djibouti |
170 |
182 |
+7% |
|
Jordan |
955 |
916 |
(4%) |
|
Algeria |
1466 |
1382 |
(6%) |
|
Tunisia |
1036 |
845 |
(18%) |
|
Lebanon |
2654 |
2128 |
(20%) |
|
Oman |
4191 |
3125 |
(25%) |
|
Sudan |
1136 |
825 |
(27%) |
|
Palestine |
252 |
176 |
(30%) |
|
Bahrain |
1654 |
942 |
(43%) |
|
Kuwait |
204 |
104 |
(49%) |
|
Morocco |
3559 |
1599 |
(55%) |
|
Yemen |
(282) |
(371) |
-- |
|
Qatar |
(2186) |
(2813) |
-- |
|
Iraq |
(4885) |
(3076) |
-- |
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