RIYADH — The foreign direct investment (FDI) balance in Saudi Arabia recorded a growth of 6.1 percent by the end of the first quarter of this year, compared to the same period last year. This indicates the confidence of foreign investors in the Kingdom's investment environment. According to a recent report issued by the Ministry of Investment, foreign direct investment flows achieved a growth of 0.6 percent during the first quarter of this year, compared to the same period last year. The report revealed that the number of investment licenses issued by the ministry reached 2,728 in the second quarter of 2024, on an annual basis, after excluding licenses related to the campaign to combat violators of the Commercial Concealment Law. This reflects the Kingdom's position as an attractive destination for investors, which enjoys strong competitive advantages represented by a stable and supportive environment for business. Total fixed capital formation achieved a growth of 7.9 percent during the first quarter of this year, compared to the same period in 2023. This is attributed to the increase in both fixed capital formation of the government and non-government sectors by 17.8 percent and 7.2 percent respectively during the same period. The report reveals positive growth in the rates of most economic activities in the first quarter of 2024, on an annual basis, as the wholesale and retail trade, restaurants and hotels activity achieved the highest growth rate of 5.9 percent, followed by transportation, storage and communications at 5 percent. The activity of collective, social and personal services and the activity of agriculture, forestry and fisheries achieved growth of 4.5 percent and 4.4 percent respectively. The Ministry of Investment, in cooperation with the Thai Investment Board and the Embassy of Thailand in Saudi Arabia, recently organized the Saudi-Thai Investment Forum in Riyadh, in the presence of Minister of Investment Eng. Khalid Al-Falih and Thai Minister of Foreign Affairs Maris Sangiampongsa. A number of officials and CEOs of major companies and representatives of the private sector from both the countries participated in the event. During the forum, the opening of an office for the Thai Investment Board in Riyadh was announced to confirm the strategic partnership, expand trade exchange and enhance economic relations between the Kingdom and Thailand. The forum also witnessed the signing of 11 agreements and memoranda of understanding in several fields such as agriculture, food, tourism, infrastructure, and energy, as well as to enhance trade cooperation and develop trade and investment relations between the two countries.
