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Saudi Arabia surpasses Vision 2030 targets with $314 billion in private investment
This growth is largely attributed to a 7.6% expansion in non-government sector investments.
Saudi Arabia’s capital investment is not only meeting but surpassing ambitious targets as the kingdom accelerates its efforts to expand the private sector and attract global capital.
According to data from the Ministry of Investment, Saudi Arabia’s gross fixed capital formation (GFCF) reached $313.68 billion in 2024, reflecting a 5.3% annual growth. This increase is largely driven by a 7.6% rise in investments from the non-government sector.
The Kingdom’s GFCF has exceeded initial expectations, with cumulative investments from 2021 to 2024 totaling $1.09 trillion—28% higher than the targeted $858 billion. As part of its Vision 2030, the National Investment Strategy aims to boost annual GFCF to $533 billion by 2030, contributing 30% to the country’s GDP.
In 2024, the private sector made up 88% of the total GFCF, amounting to $274.6 billion. In contrast, government sector investments experienced an 8.3% decline, reaching $38.4 billion, signaling a strategic shift towards private sector-driven economic growth.
Foreign direct investment (FDI) has surpassed expectations, with total inflows from 2021 to the third quarter of 2024 reaching $104 billion, including nearly $28 billion from the Aramco deal. This marks a 33% increase over the targeted $78.6 billion, reflecting strong investor confidence.
Saudi Arabia has introduced a series of pro-business reforms, including streamlined regulations, tax incentives, and the Regional Headquarters Program, to attract multinational corporations. Major giga-projects such as NEOM, the Red Sea, and Qiddiya, alongside public-private partnerships, are fueling investor interest.
The recent approval of the Saudi Investment Promotion Authority further strengthens the Kingdom’s investment ecosystem. Investment Minister Khalid Al-Falih highlighted that this initiative will capitalize on Saudi Arabia’s strategic location, investor-friendly policies, and infrastructure to reinforce its position as a global investment hub.
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