Saudi Arabia Utilizes Company Financial Data for Accurate Foreign Direct Investment Calculation

Riyadh: Saudi Arabia has embarked on a mission to enhance its economic data by incorporating data collected directly from the financial statements of companies and investors to calculate foreign direct investment (FDI). Saad Alshahrani, the Deputy Minister for Economic Affairs and Investment Studies at the Ministry of Investment, revealed this update.

In an interview with Reuters, Alshahrani shared that the ministry aims to reconcile actual figures obtained from financial statements with survey-based estimates provided by the General Authority for Statistics (GASTAT) on an annual basis. The objective is to compile precise and comprehensive data.

Alshahrani expressed his astonishment at the results obtained from examining more than 100,000 financial statements spanning a decade. He noted that the central bank had previously calculated only FDI inflows, resulting in an overestimation of the total FDI stock by 25%.

The deputy minister highlighted the substantial impact of Saudi Arabian Oil Co.'s (Saudi Aramco) gas pipeline deal on the observed increase in the data.

While projects related to the oil sector have played a crucial role in attracting FDI to the Kingdom, Alshahrani emphasized that non-oil investments have also seen significant growth in recent years.

By incorporating accurate financial data from companies and investors, Saudi Arabia aims to provide a more precise assessment of the country's FDI landscape. This initiative aligns with the Kingdom's commitment to fostering transparency and enhancing data-driven decision-making in its pursuit of economic development and growth.