Saudi Arabia Reports FDI Inflows Of USD 5.9 Billion In First Quarter Of 2025

The Saudi General Authority for Statistics (GASTAT) announced that Foreign Direct Investment (FDI) inflows reached SAR 22.2 billion (USD 5.9 billion) in the first quarter of 2025. This represents a 44% increase from the same period last year, which saw SAR 15.5 billion (USD 4.1 billion). However, there was a 7% decline compared to the fourth quarter of 2024, which recorded SAR 23.9 billion (USD 6.4 billion).

In Q1 2025, the overall unemployment rate in Saudi Arabia, including both Saudis and non-Saudis, stood at 2.8%. The total labour force participation rate reached 68.2%, with Saudi participation increasing to 51.3% from Q4 of 2024. The Labour Market Statistics Bulletin highlighted these figures.

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Saudi males saw an increase in their labour force participation rate to 66.4%, while their unemployment rate fell to 4%. Women's empowerment initiatives have been successful, boosting women's economic involvement and supporting growth and sustainable development.

The labour force participation rate among Saudi females rose to 36.3%, with their unemployment rate decreasing to 10.5% compared to the previous quarter. Young Saudi women aged between 15 and 24 experienced an increase in their employment-to-population ratio to 14.6%, while their labour force participation rose to 18.4%.

For young Saudi males within the same age bracket, the employment-to-population ratio decreased to 29.2%, and their labour force participation rate dropped to 33%. Their unemployment rate improved, falling to 11.6% compared to Q4 of the previous year.

Impact of Improved Labour Policies

The positive outcomes in employment statistics reflect enhanced labour market policies in Saudi Arabia, driven by its robust performance and growing appeal as a destination for investment and work opportunities.

FDI inflows into the Kingdom totalled SAR 24.0 billion (USD 6.4 billion) in Q1 of this year, marking a year-on-year increase of 24%. However, there was a slight drop of about 6% compared to Q4 of last year.

The data underscores Saudi Arabia's ongoing efforts to improve its economic landscape through strategic initiatives aimed at increasing foreign investments and enhancing workforce participation across different demographics.

With inputs from WAM