RIYADH: Saudi Arabia’s gross fixed capital formation reached SR1.33 trillion ($355 billion) in 2024, reflecting a 4.5 percent annual increase, according to updated data released by the Ministry of Investment.
This figure exceeded the ministry’s original target of SR964 billion by 38 percent, underscoring strong momentum in the Kingdom’s capital investment cycle and signaling continued progress toward Vision 2030 objectives.
The updated breakdown shows that private sector investments grew by 11 percent annually in 2024 to reach SR1.19 trillion, now accounting for 89.16 percent of total GFCF.
Meanwhile, government sector investment declined by 29.4 percent to SR144.3 billion, representing just 10.84 percent of total capital formation. The figures highlight the country’s growing reliance on private investment to drive sustainable growth.
GFCF rose to 29 percent of gross domestic product, surpassing the National Investment Strategy target of 26 percent, signaling growing investor confidence and effective policy implementation, according to the ministry.
The GFCF metric—an indicator of long-term economic health—tracks net investment in fixed assets across infrastructure, industry, real estate, and tourism. Higher capital formation is typically associated with greater productive capacity and stronger future growth.
These investment gains come amid a broader push by the Ministry of Investment and the newly established Saudi Investment Promotion Authority to strengthen Saudi Arabia’s position as a global investment hub.
Through its InvestSaudi platform, the authority has launched wide-ranging initiatives to attract domestic and international capital.
Efforts include a revamped national investment portal that highlights 15 priority sectors with tailored incentive packages, alongside the rollout of the 2025 Investment Law, which streamlines licensing and regulatory processes across industries.
Internationally, Minister of Investment Khalid Al-Falih has led roadshows and delegations across Asia, the Americas, and Europe—regions that collectively account for a significant share of the Kingdom’s foreign direct investment inflows.
Al-Falih has emphasized Asia as a key focus, noting that six of Saudi Arabia’s top 10 FDI source countries are from the region. Domestically, he continues to promote Saudi investment opportunities at major economic forums and sector-specific conferences, positioning the Kingdom’s transformation as a compelling investment narrative.
Together, these outreach efforts, combined with a growing pipeline of mega-projects such as NEOM, the Red Sea, and Diriyah Gate, are shaping a dynamic investment landscape and reinforcing the Kingdom’s appeal to both regional and global investors.
Source: www.arabnews.com