US Emerges As Largest Greenfield Investor In Saudi Arabia During First Half Of 2025

In the first six months of 2025, Saudi Arabia saw a significant influx of foreign direct investment, with the United States leading the charge. American entities launched 61 projects, funneling $2.7 billion into the country. This investment accounted for nearly one-third of both the total number of projects and the overall capital investment during this period, according to a report by Emirates NBD.

Following the US, Egypt emerged as a key investor, initiating 11 projects that generated $1.81 billion, largely propelled by significant developments in the real estate sector. Similarly, China and France demonstrated their economic interests in Saudi Arabia through substantial contributions. Chinese investments amounted to $858.3 million across 11 projects, while French ventures invested $771.7 million in six projects.

The Kingdom experienced a 30.1% increase in greenfield projects year-on-year, totaling 203 in the first half of 2025. This spike in projects contributed to a 1.7% annual rise in total investment inflows, which reached $9.34 billion. The data underscores a growing confidence in Saudi Arabia's economic landscape and its ability to attract foreign capital.

Riyadh stood out as the premier destination for these investments, garnering 100 projects worth $2.3 billion. Dammam and Jeddah also attracted significant capital, securing $1.28 billion and $1.22 billion, respectively, across various projects. These figures highlight the diverse appeal of Saudi Arabian cities to international investors.

The sectors that benefited most from these investments vary, with the business services sector receiving the highest number of greenfield FDI projects at 55, making up 27% of the total. Meanwhile, the communications sector attracted the most capital investment, with $1.92 billion injected into just 11 projects. This sector's investment spike was largely due to Equinix's announcement of a $1 billion data center at LEAP 2025, which alone constituted a significant portion of the sector's total investment.

The real estate sector also saw substantial investment, with nine projects amassing $1.79 billion, representing 19% of the total investment inflows. This indicates a strong interest in real estate development within the Kingdom, further diversifying the economic landscape.

The UAE made notable strides in strengthening its regional presence, launching 25 projects that amounted to $205.3 million. This move signifies the UAE's ongoing efforts to expand its economic footprint in Saudi Arabia and the broader Middle East region.

This surge in FDI reflects a robust confidence in Saudi Arabia's market potential and its strategic initiatives to diversify its economy. With significant contributions from the US, Egypt, China, France, and the UAE, Saudi Arabia is poised to continue its trajectory of attracting diverse international investments, bolstering its position as a key player in the global economy.