Despite the regional uncertainty, Saudi Arabia’s (KSA's) international investment strategy, spearheaded by the Public Investment Fund (PIF), has not wavered with several deals announced across a range of sectors since the start of the Iran conflict.

Additional investment projects are in the pipeline, and this will be further driven by the recently announced PIF 2026-2030 strategy which will focus on long-term value creation, capital efficiency, and strengthened domestic ecosystems. Expectations are for continued investment flows in targeted sectors across the KSA including tourism and entertainment, urban development, advanced manufacturing and innovation, industrials and logistics, and clean energy.

Domestic private sector confidence also underscores the KSA's resilience with two investment deals announced in its hospitality and real estate sectors worth over US$2 billion in the same period, including one with an international partner (KSA’s Abdel Hadi Al-Qahtani and the UK’s Patel Family Office).

The strong performance of iShares MSCI Saudi Arabia ETF which tracks the investment results of a broad-based index composed of Saudi Arabian equities also reflects robust international appetite to invest in the Kingdom. The fund’s year-to-date return of 9.4% as of April 20, 2026, is indicative of this.

The assets under management (AUM) of the iShares MSCI Saudi Arabia ETF has grown to over US$730 million, indicating significant foreign investor focus on KSA’s economic potential despite the uncertainty and volatility.

Important notice: Views expressed are those of Rima M. Bhatia as at the date of publication, do not constitute financial or other professional advice, and do not necessarily reflect the views of Gulf International Bank (GIB) or Inside Saudi.

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