Saudi Arabia adopts new methodology for FDI data

Riyadh city

Saudi Arabia in consultation with the International Monetary Fund (IMF) developed a new methodology for calculating the foreign direct investment (FDI) data. This came in cooperation with the Ministry of Investment, the General Authority for Statistics (GASTAT) and Saudi Central Bank (SAMA). 

The methodology aims to improve the quality and transparency of FDI data as per the best global standards. The final data will be published by the end of the year, GASTAT said in a statement today, Oct. 21. 

The new methodology, endorsed by the IMF, uses surveys to produce quarterly numbers while an analysis of financial statements is used to produce highly accurate yearly numbers with 20 FDI indicators covering countries, sectors and administrative regions.

The UNCTAD confirmed that the new methodology follows international standards in accordance with the Balance of Payments Manual by the IMF, while the World Bank supports the recommendations made by the IMF in its technical assistance report on Saudi Arabia.

Minister of Investment, Khalid Al Falih, said the new methodology was just one part of the continuing reforms and upgrades to data accuracy and transparency taking place in Saudi Arabia, while the economy and investment ecosystem continues to mature off the back of Vision 2030 and the National Investment Strategy (NIS).

Improving the transparency and quality of the Kingdom’s FDI statistics will help investors make much more confident and informed decisions, while the Kingdom will be able to adapt its policies to attract even more investment.

President of GASTAT, Fahad Abdullah Aldossari, affirmed the FDI methodology was approved after technical assistance from the IMF, according to the best international practices. The methodology aligns with the IMF’s Balance of Payments Manual. He also stated that the methodology will contribute to improving the accuracy, and covering more FDI indicators.

The FDI statistics will help decision-makers in designing policies, in order to create an attractive investment ecosystem and highlight the investment opportunities in the Kingdom, Aldossari said.

This comes as part of GASTAT’s efforts to provide accurate and comprehensive statistical data with high quality and transparency.

In the last two years, the Ministry of Investment worked in line with the new methodology to analyze more than 70,000 financial statements for many businesses covering the last 15 years. This mega project will support decisionmakers, analysts and competent parties to conduct studies and analyses.