Saudi Arabia’s Investment Minister Khalid Al-Falih has set an ambitious goal to quadruple foreign direct investment (FDI) to $100 billion by 2030, as part of the kingdom’s Vision 2030 strategy aimed at diversifying its economy beyond oil. Speaking with Bloomberg’s Joumanna Bercetche at the Future Investment Initiative (FII) conference in Riyadh, Al-Falih acknowledged global trade tensions but cautioned against overstating the risks of trade wars, suggesting instead that such shifts represent “natural adjustments” within the global economy.
“Trade shifts are inevitable, but we shouldn’t over-dramatize the risks of trade wars,” said Al-Falih, addressing concerns about the potential impact of geopolitical rivalries on global investment flows. His comments come amid intensifying trade competition among the world’s largest economies, particularly the U.S. and China, which has prompted businesses worldwide to reevaluate supply chains and market strategies.
Currently, Saudi Arabia’s annual FDI stands at approximately $26 billion. While the nation’s 2030 target of $100 billion may appear ambitious, Al-Falih expressed confidence that the kingdom’s ongoing reforms and investment-friendly policies will make it attainable. “We’ve already seen substantial progress, and as we build on our momentum, I’m confident we’ll reach our FDI goals,” he stated.
Vision 2030, launched under the guidance of Crown Prince Mohammed bin Salman, represents Saudi Arabia’s blueprint for economic diversification, aiming to transform the country into a global business and investment hub. Through this plan, the kingdom has pursued various high-profile initiatives, including the Neom megaproject and investments in clean energy, technology, and tourism, to lessen its reliance on oil revenue and attract global investors.
As part of its investment strategy, Saudi Arabia has introduced a series of regulatory and policy changes to attract foreign businesses, including easing visa requirements, reforming labor laws, and establishing special economic zones. The government has also strengthened its stance on intellectual property protections and incentivized partnerships in industries such as renewable energy, AI, and healthcare.
The FII conference, often referred to as “Davos in the Desert,” has drawn global business leaders and investors to Riyadh, underscoring Saudi Arabia’s commitment to positioning itself as a prominent player on the world investment stage. By cultivating an investor-friendly environment, the kingdom hopes to attract long-term capital that aligns with its Vision 2030 objectives.
Al-Falih’s remarks at the FII echo a broader optimism within Saudi leadership that, despite global challenges, the kingdom can serve as a bridge between markets in the East and West. With a growing economy and ongoing reforms, Saudi Arabia’s investment push could play a central role in reshaping the nation’s economic landscape by the end of the decade.
