The value of foreign investments in Saudi Arabia increased by the end of the third quarter of last year 2018 to reach about 1.485 trillion riyals, compared to 1.343 trillion riyals at the end of the same period of 2017, which is up by 10.5 percent to reach 140.99 billion riyals.
According to the analysis of the report unit in the newspaper "AlEqtisadiah" and based on preliminary data from the Saudi Arabian Monetary Agency (SAMA), the rise in foreign investments in Saudi Arabia by the end of the third quarter of last year 2018 is largely due to the growth of portfolio investments including property rights, shares, and debt securities, which accounts for about 23 per cent of the volume of foreign investment.
Foreign investments in Saudi Arabia are divided into three main types.
The first is direct investment within the economy, which constitutes about 59 per cent of the volume of investments.
The second is portfolio investment, which is divided into two types: "equity, investment fund shares" and "debt securities," which account for 22.9 per cent of the volume of investments.
The third and final section of the main sections is other Investments, which is divided into three branches: "loans", "currency and deposits" and "other accounts payable."
This represents about 17.8 per cent of the volume of investments by the end of the third quarter of 2018.
Direct investment within the economy accounts for the largest proportion of investments, which is accounting for 59.3 per cent of the bank's total assets at SR 879.8 billion at the end of the third quarter of 2018, recording an annual growth of 1.14 percent or 9.94 billion riyals, which stood at 869.8 billion riyals at the end of the third quarter of 2017.
The rise in portfolio investment, which is the highest among the main divisions, is due to one of its sub-divisions, debt securities, which grew by 81 per cent to SR 91 billion in order to reach about 204.57 billion riyals by the end of the third quarter of 2018, compared to 113.2 billion riyals for the same period of 2017.
The property rights and Equity Funds division grew by 28 per cent to reach 135.7 billion riyals at the end of the third quarter of 2018, compared to 113.2 billion riyals, with an increase of 29.7 billion riyals by the end of the third quarter of 2017.
The third section, "Other Investments," is registering a growth rate of 3.9 per cent at the end of the third quarter of 2018 on an annualized basis to reach 264.3 billion riyals.
"Other investments" are divided into three types: the first is "loans" that worth 114.98 billion riyals, the second is "currency and deposits" that amounted to about 94.31 billion riyals, and the third type is "other accounts payable" that amounted to 55 billion riyals by the end of the third quarter of 2018.
* Economic Reports Unit
