Saudi Arabia has achieved its highest position ever, ranking 13th in Kearney’s 2025 Foreign Direct Investment Confidence Index. This improvement reflects increased investor confidence due to ongoing economic reforms and diversification efforts.
The Kingdom moved up one spot from the previous year and remains the third most attractive emerging market, underscoring global trust in its transformation plans.
Kearney’s annual index, based on insights from top executives, highlights potential investment destinations over the next three years. Conducted in January, the survey captures investor sentiment amid a dynamic global environment.
Saudi Arabia’s net FDI inflows rose by 37% in Q3 2024 to SR16 billion ($4.26 billion), from SR11.7 billion in the prior quarter, illustrating growing international investor interest as reported by the General Authority for Statistics.
Rudolph Lohmeyer of Kearney emphasized that Saudi Arabia’s rise is due to its bold reforms aimed at creating a globally competitive economy.
He noted the Kingdom’s clear vision, ambitious goals, and commitment to innovation as key factors attracting global investors.
This progress coincides with global investors seeking stable, high-performing markets with long-term growth prospects. A new investment law ensuring equal treatment for foreign and domestic investors further boosts confidence and market accessibility.
In 2023, FDI in Saudi Arabia’s non-oil sectors grew by 10.4%, driven by the transformative Vision 2030 agenda.
The survey identified strong domestic economic performance, natural resources, and rapid technological advancement as reasons for choosing Saudi Arabia as an investment hub.
Erik Peterson from Kearney noted that while the Middle East is well-represented, developed markets, led by the US, dominate the rankings.
This indicates an evolving investment landscape where opportunities are weighed against rising risks, such as restrictive regulations aimed at enhancing domestic resilience.
Saudi Arabia’s strong showing places it among top emerging markets like the UAE and China.
Despite cautious global sentiment, confidence in Saudi Arabia is increasing, highlighting its role in global capital flows and its status as a model for growth-focused economies.
The report mentioned that investor sentiment was gauged before recent global trade tensions, yet concerns over geopolitical instability and commodity prices were already noted.
Investors continue to prioritize markets with strong fundamentals, citing legal and regulatory efficiency, economic performance, and innovation as crucial factors.