Saudi Arabia Seeks Foreign Investment as Debt Soars to Fund Vision 2030

• Saudi Arabia faces mounting budget deficits and rising debt, projected to exceed $600 billion this year, due to lower oil revenues and extensive Vision 2030 spending.
• The kingdom is intensifying efforts to attract foreign investors as domestic banks face liquidity constraints and cannot absorb additional government debt.
• Major financial liberalization effective February 1 allows all international investors, including individuals, to directly buy shares on the Saudi Exchange (Tadawul), replacing the restrictive QFI framework.
• This reform aims to boost liquidity, improve valuations, and attract an estimated $10-15 billion in fresh inflows, vital for funding mega-projects like NEOM and The Line.
• Despite retaining some foreign ownership caps, further liberalization is possible, highlighting the kingdom's reliance on global capital to achieve its economic diversification goals.