$18 billion in direct Saudi investments abroad in the first quarter of 2023

Saudi direct investments abroad recorded a remarkable increase by the end of the first quarter of 2023 on an annual basis, as net investments in the first 3 months of this year reached a record level.

Net direct 

Net direct Saudi investments abroad during the first 3 months of 2023 amounted to about 68.67 billion riyals ($18.31 billion), compared to 8.57 billion riyals ($2.28 billion) in the first quarter of 2022, a jump of 701.3%; According to statistics prepared by "Mubasher" based on recent data of the Central Bank "SAMA".

Saudi investments abroad increased

The cumulative direct Saudi investments abroad increased by 20.3% by the end of the first quarter of 2023 on an annual basis, with an increase equivalent to 118.39 billion riyals ($31.57 billion), compared to its value at the end of the same quarter of last year.

The value of direct investment abroad reached more than 701.36 billion riyals ($187.03 billion) by the end of the first quarter of 2023, compared to 582.97 billion riyals ($155.46 billion) at the end of the first quarter of 2022.

The cumulative direct investments abroad amounted to 632.69 billion riyals ($168.72 billion) by the end of the fourth quarter of 2022, increasing by the end of the first quarter of this year by 10.85% on a quarterly basis.

Saudi assets invested

 The value of Saudi assets invested abroad rose to 5.138 trillion riyals ($1.37 trillion) by the end of the first quarter of 2023, compared to 4.830 trillion riyals ($1.29 trillion) in the same quarter of last year. It increased by 6.38% on an annual basis, equivalent to 308.08 billion riyals ($82.15 billion).

Saudi investments abroad include several items, including portfolio investments (debt securities, equity and investment fund shares), and other investments such as loans, currency, deposits, commercial credit, and others.

Equity investments and shares

Equity investments and shares of investment funds rose to 1.326 trillion riyals ($353.56 billion) at the end of the first quarter of this year, compared to 1.233 trillion riyals ($328.8 billion) at the end of the same quarter of 2022, an increase of 7.5%.

Meanwhile, Saudi investments abroad in debt securities decreased by about 3.4% at the end of the first quarter of 2023 on an annual basis, to 223.17 billion riyals ($59.51 billion), compared to 231.04 billion riyals ($61.61 billion) at the end of the same quarter of last year.

Investments in currency and deposits abroad jumped to 1.081 trillion riyals ($288.37 billion), compared to 888.03 billion riyals ($236.81 billion) in the first quarter of 2022; To increase by 21.77% on an annual basis, equivalent to 193.34 billion riyals ($51.56 billion).

In another side, Saudi Arabia and the UAE have allocated $6 billion to support their trade and investment activities inside Iraq, which seeks to take advantage of its geographical location to keep pace with the global trade process.

The head of the Federation of Iraqi Chambers of Commerce indicated that Baghdad, Riyadh and Abu Dhabi have a desire to establish investment projects and not just trade exchange only.

The UAE deposited $3 billion in its own fund, and Saudi Arabia put a similar amount in its own fund to support their operations in Iraq, which include commercial and investment activities.