Foreign investment in Saudi Arabia could near SAR 150B in 2025: Minister

Minister of Investment, Khalid Al-Falih

Minister of Investment, Khalid Al-Falih, confirmed that the cumulative volume of foreign investment in Saudi Arabia exceeded SAR 1 trillion by the end of Q3 2025.

Speaking at a government press conference, Al-Falih added that the fixed capital formation surpassed SAR 1.44 trillion for the first time by the end of 2024 — a growth of over 120% compared with 2017 levels — and is projected to top SAR 1.5 trillion by 2025-end.

Further, foreign investment inflows in 2025 are expected to range between SAR 140 billion and SAR 150 billion, he pointed out.

Private investment, according to the minister, accounted for more than 75% of total investments. Meanwhile, the combined contributions from the government and the Public Investment Fund (PIF) did not exceed 25%.

He highlighted that foreign companies have contributed to the employment of 1.5 million people, including 500,000 jobs for Saudi nationals, indicating that the average wage for Saudis in the private sector has increased by around 45%.

The minister identified Regional Headquarters (RHQ) as the most important foreign investment driver in the Kingdom.

The number of international companies establishing RHQ in Saudi Arabia has surged from just five to more than 700 within five years. Many of these HQs cover not only the region but also Africa and Europe, according to Al-Falih.

Addressing the automotive sector, he stressed that Saudi Arabia is the world’s car largest importer without domestic factories. However, manufacturing has recently begun Kingdom-wide, with three automotive companies slated to produce around half a million vehicles in the coming years.

Elsewhere, the number of licensed foreign investors in the Kingdom has risen to 62,000, from fewer than 7,000 previously. “In comparison, Saudis hold around 1.8 million commercial registers, representing the vast majority,” he stated.

Al-Falih also confirmed that work is underway to launch an updated investment strategy, after achieving the goals of the current one. The newly-crafted strategy will focus on high-impact sectors, led by artificial intelligence, advanced industries, and knowledge localization.