|03 October, 2019

Saudi Arabia lures $234bln FDI in Q2 2019

Overall foreign investments in the oil-rich kingdom reached $449.33bln in Q2 2019

Image used for illustrative purpose. American dollar and Saudi Riyal on the wooden.

Image used for illustrative purpose. American dollar and Saudi Riyal on the wooden.

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Riyadh –  Foreign investments in Saudi Arabia grew by SAR 165.73 billion ($44.19 billion), or 10.9%, year-on-year, during the second quarter of 2019.

Overall foreign investments in the oil-rich kingdom reached SAR 1.685 trillion ($449.33 billion) in Q2-19, compared to SAR 1.519 trillion ($405.13 billion) in the year-ago period, according to statistics conducted by Mubasher based on official data released by the Saudi Arabian Monetary Authority (SAMA).

Quarter-on-quarter, foreign investments in the GCC nation rose by SAR 49.81 billion ($13.28 billion), or 3.05%, in the second quarter of the year, compared to SAR 1.635 trillion ($436.05 billion) a quarter earlier.

FDI

Saudi Arabia’s foreign direct investment (FDI) went up by SAR 16.74 billion ($4.46 billion), or 1.95%, to SAR 877.22 billion ($233.92 billion) in the three-month period ended 30 June, against SAR 860.48 billion ($229.46 billion) in the year-ago period.

It is noteworthy that FDI accounted for 52.06% of total foreign investments in the kingdom.

Quarter-on-quarter, FDI grew by 0.46%, or SAR 4.02 billion ($1.07 billion), in Q2-19, in comparison to SAR 873.2 billion ($232.85 billion) in Q1-19

Portfolio investments

The rise in foreign investments was supported by the 27.4% growth in portfolio investment inflows, which include investing in equity, shares of mutual funds, and debt instruments.

Portfolio investments in Saudi Arabia surged SAR 97.37 billion ($25.96 billion) to reach SAR 452.39 billion ($120.64 billion) in Q2-19, compared to SAR 355.02 billion ($94.67 billion) in the same period a year earlier.

Investments in equity and shares of mutual funds levelled up by 39.6% to SAR 189.49 billion ($50.53 billion) from April to the end of June, compared to SAR 135.75 billion ($36.2 billion) in Q2-18.

In addition, foreign investments in the kingdom’s debt instruments amounted to SAR 262.9 billion ($70.11 billion), rising by 19.9% year-on-year from SAR 219.27 billion ($58.47 billion) a year earlier.

Translated by: Muhammad Abdul-Wakeel

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