Saudi Arabia's Investment Volume Surpasses $400 Billion, Bolstering Africa–Gulf Economic Ties

Historic Investment Milestone Achieved

Saudi Arabia has officially surpassed a total investment volume of $400 billion (equivalent to SR 1.5 trillion) in 2025, signaling a new era for economic partnerships, particularly between Africa and the Gulf region. This significant achievement was confirmed by Saudi Minister of Investment Khalid Al-Falih at a government press conference in Riyadh. The Kingdom has witnessed record levels of foreign capital inflows, largely attributed to its ambitious Vision 2030 transformation plan.

The surge in investment underscores Saudi Arabia's commitment to diversifying its economy away from oil dependency and establishing itself as a global investment hub. Foreign direct investment (FDI) in 2025 is projected to reach between SR 140 billion and SR 150 billion, representing a fivefold increase compared to the SR 28 billion recorded in 2017. The long-term objective is to attract $100 billion in annual FDI by the end of the decade.

Deepening Africa–Gulf Economic Partnership

Saudi Arabia is increasingly positioning itself as a strategic long-term partner for Africa, aiming to reshape the continent's economic future. The Kingdom's investment model emphasizes sustainable development, focusing on job creation, skills development, technology transfer, and the establishment of industrial ecosystems, rather than solely short-term extraction.

Saudi capital is actively flowing into diverse African markets, spanning sectors such as:

• Energy
• Mining
• Agriculture
• Logistics
• Infrastructure
• Tourism
• Fintech
• Real estate

Notable commitments include a joint pledge with the UAE of over US$400 million to Sudan's agricultural sector, complemented by an additional US$3 billion allocated to an investment fund. Furthermore, Saudi Arabia has committed more than $40 billion through 2030 to finance projects in energy, mining, agriculture, and food security across Africa.

Impact of Vision 2030 and Economic Reforms

The success of Vision 2030 is evident in several key indicators:

• Over 800,000 new jobs have been created.
• Private sector wages have seen a substantial increase of 45%.
• Women's participation in the workforce has doubled.

The Kingdom has also become a magnet for international businesses, with over 62,000 foreign firms now licensed, a significant rise from 6,000 in 2016. More than 700 multinational corporations have established regional headquarters in Saudi Arabia, many leveraging this presence to expand into African economies.

In a move to further enhance market accessibility, the Capital Market Authority will allow all foreign investors direct access to the Main Market starting February 1st, removing previous qualification requirements.

Tourism and Future Outlook

Beyond traditional sectors, Saudi Arabia has emerged as the largest single investor in global tourism, dedicating over $400 billion to developing new tourism destinations, expanding aviation and airport infrastructure, and increasing hotel capacity.

The robust foreign direct investment inflows continue to demonstrate strong investor confidence. Net FDI inflows reached SAR 46.5 billion ($12.4 billion) in the first half of 2025, marking a 29.2% year-on-year increase. This momentum continued into the third quarter of 2025, with net FDI inflows jumping by 34.5% compared to the same period in 2024. These figures underscore Saudi Arabia's growing economic influence and its strategic role in fostering global and regional economic integration.