Saudi Arabia aims to increase foreign direct investment (FDI) to $100 billion annually by 2030, a significant jump from the current average of $17 billion between 2017-2022, according to Bloomberg on Thursday. Achieving this goal remains a challenge as foreign investors remain cautious. This goal is three times higher than the kingdom's previous record and 50 per cent more than India's current FDI levels. Preliminary data for 2023 indicates FDI is below target at around $19 billion, according to the Ministry of Investment. The government is exploring self-funding options for its economic transformation, scaling back on megaprojects and issuing bonds to address fiscal deficits. The success of these efforts will impact Saudi Arabia's investments and global oil policies. The push for external capital is gaining traction, with several investment deals closed in 2023. Efforts to attract foreign money include partnerships with companies like Amazon for investments in data centres. As Saudi Arabia seeks more foreign investment, the government is reaching out to neighbouring countries like Kuwait for financing. The success of Vision 2030 hinges on attracting external capital while leveraging Saudi strengths for development. Saudi Arabia's spending decisions will have global implications, given its significant investments in various sectors worldwide. As the kingdom fills financing gaps at home, it will continue to rely on oil revenues to support its economic transformation.
