Saudi Investment Rises: GFCF Hits SR358bn in Q1 2026

Saudi Arabia recorded strong investment momentum in the first quarter of 2026, with gross fixed capital formation reaching SR 358.3 billion, an increase of 5.1% compared with the same period a year earlier.

The figures point to a continued flow of spending into new projects, equipment and infrastructure across the Kingdom. Gross fixed capital formation is a widely watched measure of investment activity, reflecting how much is being put into assets that support future economic output.

Government spending drives the jump

Government investment stood out during the quarter, rising 54% year-on-year to SR 38.3 billion. This sharp increase highlights the ongoing role of public spending in funding development and infrastructure projects tied to national growth goals.

Non-government investment remained the backbone of overall activity, reaching SR 319.9 billion and making up about 89% of total gross fixed capital formation. It grew a more modest 1.3% year-on-year, underlining the steady contribution of the private sector and other non-government entities.

For residents and businesses in Riyadh, Jeddah and beyond, sustained investment growth signals continued momentum behind construction, services and job creation. Higher capital spending typically supports new opportunities across sectors, from real estate and retail to logistics and technology, in line with the Kingdom's long-term economic ambitions under رؤية السعودية 2030.

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