RIYADH: According to latest data, Saudi Arabia’s gross fixed capital formation increased by 5.3 percent annually to SR1.18 trillion ($313.68 billion) in 2024. According to a Ministry of Investment study, this gain was caused by an increase in non-government sector investments, which grew by 7.6 percent over the course of the year. With cumulative investments from 2021 to 2024 totaling SR4.11 trillion, or 28% more than the initial goal of SR3.22 trillion for the period, the Kingdom’s GFCF has exceeded projections.
A major component of Vision 2030, the National Investment Strategy seeks to increase GFCF to SR2 trillion annually by 2030, or 30% of GDP. Additionally, the plan calls for SR1.7 trillion in domestic investments within the GFCF, reaffirming Saudi Arabia’s dedication to sustainable economic growth and the expansion of the private sector. Because it represents capital accumulation bolstering future production capacities and economic expansion, GFCF—a measure of the net increase in physical assets inside an economy—is an essential part of GDP.
The private sector contributed SR1.03 trillion, or 88%, of the overall GFCF in 2024. The government sector, which accounted for 12% of the total, witnessed an 8.3% drop to SR144.3 billion, indicating a deliberate move toward growth driven by the private sector. According to the government, overall inflows from 2021 to the third quarter of 2024 totaled SR391 billion, including SR104 billion from the Aramco sale, exceeding expectations for foreign direct investment as well.
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