Saudi Arabia’s FDI ranking has surged to 13th in the 2025 Kearney Foreign Direct Investment Confidence Index, demonstrating the Kingdom’s growing attractiveness to international investors. With major reforms driving FDI growth in Saudi Arabia, the Kingdom is actively promoting itself as a global investment centre. Foreign businesses are encouraged to start business in Saudi Arabia, especially in sectors like healthcare, technology, renewable energy and infrastructure. For foreign investors, this change offers numerous opportunities for starting successful businesses in Saudi Arabia.
Saudi Arabia’s strategic position at the junction of Europe, Asia and Africa offers the investors access to three main markets and helps the kingdom to become a hub of global trade and logistics, ranking high among the best countries for FDI. Besides, the Government supported incentives accentuate this geographic advantage.
Saudi Arabia FDI Ranking
Saudi Arabia has made a significant leap in the global Foreign Direct Investment (FDI) rankings, securing the 13th spot in the Kearney Foreign Direct Investment Confidence Index 2025. This achievement solidifies the Kingdom’s position as a magnet for global investments, diversifying its economy beyond oil.
As per the Kearney 2025 Foreign Direct Investment Confidence Index, the Kingdom has achieved a 48% surge in new business registrations.
The Kearney FDI Confidence Index is an annual survey that gauges the confidence of global business executives in investing in various markets over the next three years. The Index is constructed from the primary data collected from a proprietary survey of senior executives from leading corporations worldwide.
The introduction of the New Investment Law allows foreign investors to register their businesses with the Ministry of Investment, Saudi Arabia (MISA) for operation in Saudi Arabia. Also, permitting 100% foreign ownership rights without the need for a local partner has led to a surge in foreign direct investment in Saudi Arabia.
Key Highlights of FDI in Saudi Arabia
- Ranked 13th globally in the Kearney FDI Confidence Index 2025
- 3rd in FDI stock growth among G20 countries
- Improving business environment and investment policies
Factors Driving Foreign Direct Investment (FDI) Growth in Saudi Arabia
Saudi Arabia’s impressive ranking can be attributed to various factors, including its efforts to improve the business environment, increase transparency, and implement policies that attract foreign investment. The Kingdom’s strategic location, large market, and highly skilled workforce also make it an attractive destination for investors. The upcoming FIFA World Cup 2034 further enhances this appeal by accelerating development and drawing global attention.
Saudi Arabia has implemented various reforms to drive Foreign Direct Investment (FDI) growth, transforming its economy and reducing dependence on oil.
Key Reforms driving FDI growth in Saudi Arabia
- Vision 2030: A comprehensive plan aimed at diversifying the economy, increasing private sector participation, and attracting FDI. The plan targets $100 billion in annual FDI by 2030.
- Foreign Investment Law: Introduced to encourage FDI, this law removes obstacles and provides more freedom for foreign investors to manage and dispose of their investments.
- Special Economic Zones (SEZs): Established to attract quality FDI, SEZs offer benefits like attractive corporate taxation, expedited visa processes, and financial incentives.
- Investment Law Business Regulations Zone (ILBZ): A specialized zone providing a 50-year tax exemption, customs duty waiver, and 100% business ownership rights for foreign entities.
- Economic Diversification: Efforts to reduce oil dependence, develop non-oil sectors, and promote tourism, real estate, and manufacturing.
- Regulatory Reforms: Improvements in the business environment, including the establishment of an anti-corruption committee, and enhancements to the court system.
Investing in the Future: Eastern Province’s Rise in FDI
Saudi Arabia’s Eastern Province is at the forefront of attracting foreign direct investment (FDI). To date, the region has issued 5,456 active foreign investment licenses, reflecting its dynamic investment environment. Currently, investors can explore over 600 opportunities across various sectors. Strategic advantages include its prime location connecting six neighboring countries and its wealth of natural resources, spanning fossil fuels to renewable energy.
How can the Helpline Group in Saudi Arabia be of Assistance?
As Saudi Arabia rises in the global FDI rankings, foreign investors need to be aware of local regulations, including the Ultimate Beneficial Ownership (UBO) rules, to ensure smooth business setup and compliance with local laws. Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency. We will guide you through every step of setting up a successful business in Saudi Arabia, taking full advantage of the favourable business landscape in the Kingdom.
With a global presence and a tailored approach, we ensure that your business setup is handled with precision and professionalism, making us your reliable ally in achieving success.
