US Tops Saudi Arabia Greenfield Investment in H1 2025

Saudi Arabia greenfield investment projects rose to 203 in H1 2025. US investors led with US$2.7 billion, followed by Egypt, China, and France.

According to the report by EmiratesNBD, FDI in Saudi Arabia expanded in the first half (H1) of 2025, as the Kingdom recorded 203 greenfield projects worth US$9.34 billion. Compared with the same period in 2024, the Kingdom had a 30.1 percent rise in number of projects and a 1.7 percent increase in capital inflows. The US emerged as the largest source of investment due to the scale of bilateral economic ties and the appeal of ongoing Vision 2030 reforms.

FDI performance in H1 2025

Greenfield projects, which involve creating new facilities rather than acquiring existing assets, remain a strong measure of investor sentiment. In the H1 2025, the number of such projects rose from 156 a year earlier to 203. Capital inflows also edged up, reaching US$9.34 billion compared with US$9.18 billion in the same period of 2024.

As per the report, Riyadh continued to dominate as an investment hub by attracting 100 projects with a combined value of US$2.30 billion. Dammam ranked second, with 21 projects worth US$1.28 billion, while Jeddah registered 13 projects valued at US$1.22 billion. This distribution illustrates the government’s strategy of drawing investment to multiple cities rather than concentrating all new activity in the capital.

Net FDI inflows in the Kingdom reached US$5.9 billion in the first quarter of 2025 which is a 44 percent increase compared with the same period in 2024. The rise is mainly driven by growth in technology, real estate, manufacturing, and services alongside the hydrocarbons sector.

United States as the largest investor

The report found that the US dominated the capital inflows in the H1 2025 with 61 projects totaling US$2.7 billion. This represented 30 percent of projects and 29 percent of total investment value in the period.

Egypt ranked second in capital inflows with US$1.81 billion across 11 projects, mainly in real estate. China invested US$858.3 million from 11 projects, while France contributed US$771.7 million across six projects. From within the region, the UAE participated with 25 projects worth US$205.3 million.

Sectoral distribution of investments

Greenfield activity in H1 2025 spanned a broad set of industries. The report states that the business services led the investment ranking by the number of projects, with 55 investments that accounted for 27 percent of the total. These covered consulting, water management, and environmental services. Software and Information Technology (IT) services followed with 35 projects with the expansion of Saudi Arabia’s digital ecosystem. Transportation and warehousing, together with industrial equipment, each recorded 14 projects, whereas financial services contributed 11 projects.

Measured by investment capital inflows, communications attracted the largest share, with US$1.92 billion across 11 projects. This was driven largely by Equinix’s US$1 billion data center announced at the LEAP 2025 conference. Real estate ranked second at US$1.79 billion from nine projects riding the wave of large-scale urban development schemes. Electronic components added US$879.3 million, and further inflows were recorded in transportation, warehousing, and chemicals, which confirmed that investment is spreading across both services and capital-intensive industries.

Major project announcements

The H1 2025 saw several major foreign investments across technology, infrastructure, and real estate, as the report found. Equinix from the United States announced a US$1 billion data center at the LEAP 2025 conference. The 100 megawatt (MW) facility is designed to serve both hyperscale and retail clients. In real estate, Paragon Developments and El Attal Holding of Egypt launched US$1.7 billion worth of projects in Riyadh and Jeddah which would cover large mixed-use developments.

Infrastructure also featured prominently in the preceding months. Spain’s Lantania, working with India’s L&T, secured a US$500 million contract for the Ras Mohaisen desalination plant, which will provide water to nearly one million residents in Makkah and Al-Baha. In Riyadh, Hong Kong-based Pico Play committed US$456.1 million to build a leisure and entertainment equipment facility. In the metals industry, Kuwait’s Kirby Building Systems and India’s Welspun Group each invested US$315.1 million to expand Saudi Arabia’s capacity in steel and pipe manufacturing.

Pipeline of future commitments

The LEAP 2025 technology conference also generated a pipeline of US$14.9 billion in planned investments, expected to roll out between 2026 and 2028. Groq and Aramco Digital announced a US$1.5 billion partnership to develop artificial intelligence (AI) infrastructure. Alat and Lenovo committed US$2 billion to establish a robotics hub and DataVolt unveiled a US$5 billion data center campus in NEOM’s Oxagon.

Technology platforms also announced new projects, with Databricks, Salesforce, and Tencent Cloud all confirming investment plans. Together, these commitments move Saudi Arabia closer to the Vision 2030 target of US$100 billion in annual FDI, compared to the current inflow level of about US$20 billion per year.

Regional headquarters program

Saudi Arabia’s regional headquarters program continued to attract multinational participation in early 2025. During the H1 2025, 25 foreign companies established headquarters in the Kingdom. The scheme offers a 30-year corporate tax exemption, relief from withholding tax, and regulatory support to create incentives for firms who intend to manage their Middle East operations from Saudi Arabia. This initiative complements greenfield investment as it encourages companies to establish a lasting base in the country.

In summary

Greenfield investment activity in the H1 2025 confirmed Saudi Arabia’s position as a leading destination for new projects in the region. The US accounted for the largest share despite global uncertainty around trade and tariffs.

Future inflows are expected to be supported by the pipeline of technology investments announced at LEAP 2025 and by the continued expansion of the regional headquarters program. Now meeting the Vision 2030 target of US$100 billion in annual FDI will depend on how effectively these commitments are executed and on maintaining investor confidence across industries and cities.

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