Saudi Arabia on track to meet Vision 2030 goals

Saudi Arabia, a conventional energy powerhouse, has made significant progress in diversifying its economy under Vision 2030. The digital economy, especially in sectors like education and healthcare, now contributes 14% of GDP, with artificial intelligence expected to add $135 billion to the economy in 2030, according to a report by Oxford Business Group.

While large-scale infrastructure projects progress more slowly, the kingdom's positive economic outlook is bolstered by improving global conditions and the potential easing of interest rates. Saudi Arabia aims to attract $100 billion in annual foreign direct investment by 2030. With strong financial reserves and expanding digital infrastructure, the kingdom is well-positioned to meet its Vision 2030 goals, ensuring sustainable economic growth and diversification. Saudi economy is projected to accelerate from 1.4% growth in 2024 to 4.6% in 2025, supported by robust non-energy sector expansion of 5.8%. This will partially offset the expected 6.1% contraction in oil GDP.

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The non-oil sector, which is critical to Saudi Arabia's economic diversification agenda, is expected to stay steady at an estimated 4.5% in 2025-26. The kingdom has shown significant recovery, with GDP growing 2.8% year-on-year basis during the third quarter of 2024, following four consecutive quarters of decline. The tourism sector's ambitious $800 billion investment programme over the next 10 years, alongside major events like Expo 2030 and FIFA World Cup 2034, underpins the country's diversification efforts.

LONG-TERM TRENDS (%)

NUMBERS MATTER

$33,353: Projected GDP per Capita for 2025

$422.4 Billion: Estimated central bank reserves in 2025

Strengths

> Leading oil producer among

> OPEC countries

> Robust financial and banking systems

> Net creditor

Sectors to Watch

• Oil

• Tourism

• Infrastructure

• Real estate

• Construction

Muzaffar Rizvi

muzaffarrizvi@khaleejtimes.com

Muzaffar Rizvi is an accomplished financial journalist with more than 25 years of experience in the UAE and Pakistan. He has good writing skills, strong grip on production and an excellent news sense.