Prime Highlights:
- Saudi Arabia’s greenfield FDI projects crossed 200 in the first half of 2025, marking a 30.1% increase from last year.
- The United States led investments, contributing 61 projects worth $2.1 billion, showing strong international investor confidence.
Key Facts:
- Riyadh attracted the most projects, with 100 worth $2.3 billion, followed by Dammam (21 projects, $1.28 billion) and Jeddah (13 projects, $1.22 billion).
- The communications sector received the highest capital inflow at $1.92 billion, while real estate came second with $1.79 billion.
Key Background:
Saudi Arabia saw a strong rise in greenfield foreign direct investment (FDI) in the first half of 2025, with projects crossing the 200 mark for the first time, according to Emirates NBD.
The Kingdom attracted 203 projects, up 30.1 percent compared with the same period last year. Total capital inflows reached $9.34 billion, a modest 1.7 percent increase year-on-year.
The United States led the way, contributing 61 projects worth $2.1 billion, nearly 30 percent of the total. Egypt came second with $1.81 billion from 11 projects, mainly in big real estate developments. China invested $858.3 million, and France contributed $771.7 million.
The most projects in terms of number and value were headed by Riyadh with 100 projects valued at 2.3billion, followed by Dammam and Jeddah with 21 and 13 projects at 1.28billion and 1.22billion in value, respectively. Analysts say this spread of projects shows that Saudi Arabia is becoming more attractive to investors as part of its Vision 2030 economic diversification plan.
Most investments were in the communications sector, with the largest investment being a data center worth 1 billion from the US company Equinix, announced during the LEAP 2025 conference. Real estate came second with $1.79 billion from Egypt’s Paragon Developments and El-Attal Holding. Other active areas included electronic components, warehousing, and chemicals.
By project numbers, business services dominated with 55 projects. Key deals included Spain’s Lantania and India’s L&T securing a $500 million desalination contract, and Hong Kong’s Pico Play investing $456 million in a leisure and entertainment complex in Riyadh.
Moreover, the first half saw 25 multinationals establish their regional headquarters in the Kingdom, with the government providing incentives such as tax exemptions and regulatory back-up. Nearly 600 overseas firms, such as Deloitte, Northern Trust, and IHG Hotels, have established local hubs in that period.
This increase boosts Saudi Arabian developments in its quest to rise to the status of a hub of world investment to achieve a target of attracting 100 billion dollars of FDI by the year 2030.
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