RIYADH — In a significant stride towards economic transparency and precision, Saudi Arabia is set to unveil a new world-class methodology for compiling Foreign Direct Investment (FDI) statistics. The initiative, a collaborative effort between the Kingdom's government entities, and the International Monetary Fund (IMF), aims to align Saudi Arabia's FDI reporting with global best practices. The endeavor is a testament to the commitment outlined in Vision 2030, Saudi Arabia's blueprint for economic growth and diversification. The vision emphasizes adherence to international standards and administrative best practices to achieve the highest levels of transparency and governance. Over the past two years, the Ministry of Investment of Saudi Arabia (MISA), the General Authority for Statistics (GASTAT), and the Central Bank of Saudi Arabia (SAMA) have diligently worked to enhance the quality and transparency of the Kingdom's FDI statistics. Technical assistance from the IMF has played a crucial role in shaping the new methodology. Endorsed by the IMF, the innovative methodology employs surveys to generate quarterly figures and analyzes financial statements for highly accurate yearly statistics. It encompasses 20 FDI indicators, covering countries, sectors, and administrative regions. The Minister of Investment Khalid Al-Falih affirmed that the new methodology is part of broader reforms aimed at enhancing data accuracy and transparency in Saudi Arabia. These efforts align with the maturation of the economy and investment ecosystem catalyzed by Vision 2030 and the National Investment Strategy (NIS). Al Falih said: "Improving the transparency and quality of the Kingdom's FDI statistics will empower investors to make more confident and informed decisions, while enabling the Kingdom to adapt its policies to attract even more investment." President of GASTAT Dr. Fahad Al-Dossari confirmed the approval of the FDI methodology after technical assistance from the IMF, aligning it with international practices outlined in the IMF's Balance of Payments Manual. He highlighted that the methodology will contribute to improving accuracy and cover more FDI indicators. Dr. Al-Dossari emphasized "FDI statistics will assist decision-makers in designing policies to create an attractive investment ecosystem and highlight investment opportunities in the Kingdom." MISA Deputy Minister for Economic Affairs and Investment Studies Dr. Saad Al-Shahrani underscored the importance of high-accuracy data in measuring progress and development, as well as in monitoring the local economy and the performance of Saudi investment. The IMF, in its recent Article IV Consultation, expressed support for Saudi Arabia's continuous efforts to enhance FDI data compilation. The United Nations Conference on Trade and Development (UNCTAD) confirmed that the new methodology adheres to international standards, while the World Bank endorsed the recommendations made by the IMF in its technical assistance report on Saudi Arabia.
