Foreign investment flows to the Kingdom up 10%, in contrast to ‎declines globally

Data issued by the Ministry of Investment today reported that the rate of foreign investment inflow to the Kingdom increased in the first quarter of this year by 10.1%, compared to a growth of 9.4% in the corresponding quarter of 2022. This coincided – according to the data – with a decline in the growth of inflow. Inward foreign investment worldwide increased by 34.7%

Global investments, especially foreign direct investment flows, were affected by the slowdown in economic growth as a result of geopolitical tensions, which led to companies and decision makers adopting strategies to ensure the preservation of the flexibility of supply chains, such as localizing investments or directing them to countries that are geographically and politically close, as indicated by many economic reports and studies issued by international organizations concerned with foreign investment, in addition to the rise in interest rates and their impact on increasing the risks associated with debt. According to the latest data issued by the Organization for Economic Cooperation and Development, global foreign direct investment flows continued to decline in the first quarter of 2023 by about 34.7% compared to the first quarter of 2022.

Data indicate that OECD countries also witnessed a decline in foreign investment flows by about 37.6%, declining from the growth achieved in 2021 and the beginning of 2022. While European Union countries recorded the highest decline, by about 91.7%, while they witnessed foreign investment flows. Direct sales in the Kingdom increased significantly by 10.1% in the same quarter.