Samer Choucair: Saudi Arabia’s Rise in Foreign Direct Investment Reflects a Deep Economic Transformation
Investment leader Samer Choucair affirmed that Saudi Arabia’s rise to 13th place globally for attracting foreign direct investment (FDI) in 2025 represents a clear indicator of the Kingdom’s structural economic transformation and reflects growing confidence among international investors in the regulatory reforms and strategic projects being implemented under Vision 2030.
Choucair explained that the Kingdom attracted nearly $33 billion in foreign direct investment during 2025, representing an increase of more than 50% compared with 2024, at a time when global FDI flows recorded more moderate growth to approximately $1.62 trillion. He noted that this performance demonstrates Saudi Arabia’s ability to strengthen its competitive position internationally and attract capital despite an increasingly competitive global investment environment.
“This new global ranking is far more than a statistical milestone,” Choucair said. “It reflects growing investor confidence in the structural reforms that have made Saudi Arabia a more competitive destination while creating opportunities for strategic capital allocation toward high-value, non-oil sectors.”
Choucair added that Saudi Arabia’s current economic landscape illustrates a rapid transition from an economy centered primarily on energy toward a diversified model encompassing infrastructure, manufacturing, logistics, technology, tourism, and entertainment. He emphasized that foreign direct investment has become a major driver of knowledge transfer, technological advancement, management expertise, and global supply chain integration within the local economy.
He noted that the image of modern highways filled with commercial activity beneath Saudi national flags symbolizes the Kingdom’s economic transformation, reflecting the scale of infrastructure development, expanding commerce, and investment-driven growth resulting from large-scale development projects.
Choucair stated that data released by the United Nations Conference on Trade and Development (UNCTAD) highlighting Saudi Arabia’s improved global FDI ranking reflects several complementary factors, including an improved business environment, faster licensing procedures, expanded opportunities for full foreign ownership across multiple sectors, and the continued implementation of Vision 2030 projects supported by the Public Investment Fund.
“Institutional investors, sovereign wealth funds, and family offices increasingly favor markets that combine long-term strategic vision with strong execution capabilities,” Choucair said. “Saudi Arabia offers a compelling model built on economic reform, institutional stability, and investment opportunities across the industries shaping the future.”
He explained that these developments continue to enhance the attractiveness of Saudi assets for international investors, particularly in infrastructure, special economic zones, and large-scale national projects. He added that partnerships between the public and private sectors, alongside collaborations with the Public Investment Fund, provide strategic opportunities for long-term returns while supporting the Kingdom’s broader economic diversification strategy.
According to Choucair, the sectors expected to benefit most from this investment momentum include infrastructure and construction, driven by continued demand for roads, bridges, ports, airports, smart cities, and special economic zones. Manufacturing and advanced industries are also positioned for growth through investment incentives and initiatives aimed at localizing higher-value industrial production.
He added that financial services and insurance will play a central role in financing major projects through instruments such as sukuk, Islamic finance, and investment partnerships, while tourism and entertainment continue to emerge as key pillars of Vision 2030. Logistics and trade are likewise expected to benefit from expanding economic activity and the growing need for more efficient supply chains.
“The sectors with the greatest long-term potential are those that combine infrastructure, advanced manufacturing, and digital services,” Choucair said. “Investors who successfully integrate physical assets with modern technologies will be well positioned to create sustainable value.”
Choucair noted that global capital allocation strategies are increasingly shifting toward long-term investments built around strategic partnerships. Institutional investors, he said, are showing greater interest in joint ventures with sovereign entities, investments in specialized economic zones, and innovation across artificial intelligence, financial technology, and digital healthcare.
He emphasized the importance of aligning new investments with Vision 2030 objectives, explaining that building strong local partnerships and developing a thorough understanding of Saudi Arabia’s regulatory and commercial environment are essential ingredients for long-term investment success.
“Focusing on investments aligned with the long-term objectives of Vision 2030, while establishing strong local partnerships that provide access to data, licensing, and execution capabilities, will be among the most important success factors for investors in the years ahead,” Choucair said.
Choucair also observed that healthy economic competition among Gulf countries—particularly between Saudi Arabia and the United Arab Emirates—strengthens the region’s overall appeal to global investors, as each market offers distinct competitive advantages that can support diversified regional investment strategies.
He further emphasized that stable monetary policy, improving sovereign credit ratings, ongoing regulatory reforms, labor market development, greater female workforce participation, and rising productivity all reinforce Saudi Arabia’s ability to attract increasing levels of foreign direct investment in the coming years.
Addressing potential risks, Choucair noted that significant opportunities are accompanied by challenges that require careful management, including executing large-scale projects on schedule, fluctuations in global energy prices, workforce development, and potential inflationary pressures affecting certain sectors.
“Major opportunities inevitably come with execution risks,” Choucair said. “Investors should conduct comprehensive due diligence while placing governance, transparency, and disciplined partnerships at the center of every investment decision.”
He added that the next phase of investment will require building diversified portfolios focused on sustainable growth sectors, including smart infrastructure, advanced manufacturing, digital logistics, and renewable energy, while leveraging Islamic finance instruments and sovereign partnerships to balance long-term returns with prudent risk management.
Concluding his remarks, Choucair said, “The Saudi economy is no longer viewed solely as an oil-based market. It has become an integrated platform for sustainable growth and strategic investment. The Kingdom’s progress in attracting foreign direct investment confirms its emergence as a central destination in global capital allocation, with the strongest opportunities concentrated in sectors that combine innovation, infrastructure, and long-term economic vision.”