Riyadh – Sharikat Mubasher: Saudi Arabia is witnessing a major transformation in its foreign investment landscape, with 90% of inflows now directed toward non-oil sectors, according to Khalid Al-Falih, Minister of Investment.

Speaking at the “Change Makers Council” session during the ninth edition of the Future Investment Initiative (FII) in Riyadh, Al-Falih explained that only 10% of foreign investments target oil projects by companies such as Total and Patrick. He noted that while global foreign direct investment (FDI) has declined by 10%, Saudi Arabia’s has quadrupled, surpassing Vision 2030 targets.

Al-Falih highlighted that new investments are increasingly directed toward advanced manufacturing, tourism, entrepreneurship, and venture capital. Startup investments alone have exceeded USD 1 billion, with 60% coming from the Middle East. He added that domestic investment has doubled, now representing about 30% of total non-oil GDP investment.

The minister emphasized that government spending is no longer entirely dependent on oil revenues, as 40% of the budget is now funded through non-oil income. This shift, he added, has contributed to lower unemployment, higher female workforce participation, and increased private-sector hiring.

Al-Falih also pointed to Saudi Arabia’s evolving legislative framework, strategic geographic location, strong human capital, and vast financial reserves as key competitive advantages. He concluded by noting that the non-oil economy continues to grow at 4–5% annually, supported by robust investment funds — including the Public Investment Fund and development funds — alongside a resilient banking system that ensures capital and credit access for investors.