How Saudi Arabia Has Laid a Strong Foundation for Economic Development and Future Preparedness

A Report by the Strategic Media Department of BETH Agency

Since the launch of Vision 2030 in April 2016, the Saudi economy has experienced remarkable growth. Various indicators, including the robust and increasing GDP performance, point to consistent and sustainable growth rates.

This economic expansion comes amid growing global challenges that have made the investment landscape more complex. However, Saudi Arabia is tackling these challenges with precise planning and flexible strategies. The economy benefits from a strong foundation, abundant resources, high resilience, and significant potential.

🔹 Investing in the Future: Technology and Artificial Intelligence

Saudi Minister of Communications and Information Technology, Eng. Abdullah bin Amer Al-Swaha, has emphasized the Kingdom’s ambitions in artificial intelligence, digital infrastructure projects, and the role of Vision 2030 in fostering innovation and economic diversification.

He also highlighted Saudi Arabia’s major progress in cloud computing, telecommunications infrastructure, and the development of smart cities such as NEOM, positioning the Kingdom as a regional and global hub for digital transformation.

🔹 Media and Narrating Economic Transformations

At the heart of Saudi Arabia’s major transformations, change is not just about numbers and megaprojects but also about how these transformations are communicated to the public and the world.

During the Saudi Media Forum, the economic discussions were not just about showcasing statistics; they served as an invitation for media professionals to become the narrators of Vision 2030’s story and the broader economic transformations reshaping the Kingdom’s future.

📌 Media as a Tool for Economic Empowerment

In a panel discussion titled "The Media Dimension of Economic Policies for Vision 2030: Transformation Towards a Global Vision," H.E. Mohammed bin Mazyad Al-Tuwaijri, Vice Chairman of the Board of Directors of the National Development Fund, highlighted the role of media in translating economic transformations into stories that resonate with the public:

📢 "The media must take care of this story, simplify it, and contribute to achieving it."

Al-Tuwaijri stressed the media's responsibility in communicating economic transformations in a clear and accessible language, free from complex technical jargon.

🔹 The Role of Media in Enhancing Economic Awareness:

✅ Simplifying economic information and linking it to people’s daily lives.

✅ Showcasing success stories that reflect positive transformations.

✅ Highlighting both economic challenges and opportunities objectively.

✅ Building public confidence in economic reforms and expanding the investor base.

Al-Tuwaijri reaffirmed that media is not just a news broadcaster but an integral part of the economic transformation process, fostering a strong national narrative that connects individuals with the vision of their country and makes them feel part of the change.

🔹 Saudi Arabia as a Global Investment Hub

🔹 Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, revealed the following key investment indicators:

✅ The number of companies that have established their regional headquarters in Saudi Arabia has risen to nearly 600.

✅ Registered investment licenses surged from 4,000 in 2018-2019 to 40,000 today.

✅ Total investment has doubled to SAR 1.2 trillion, representing 30% of Saudi Arabia’s GDP.

✅ 72% of investments came from the private sector, while the Public Investment Fund accounts for only 13%, highlighting the private sector’s significant role in economic growth.

🔹 Why is Saudi Arabia an Attractive Investment Destination?

✅ Business-friendly economic reforms.

✅ Diverse investment opportunities across various sectors.

✅ Advanced infrastructure and government initiatives supporting investment.

🔹 How is Saudi Arabia Preparing for the Future?

Saudi Arabia is undergoing a profound transformation, building a strong, diversified, and sustainable economy. The Kingdom is not only fostering economic growth but also laying the foundation for long-term global competitiveness by focusing on:

1️⃣ Diversifying the Economy Beyond Oil: Investing in technology, artificial intelligence, and renewable energy.

2️⃣ Enhancing Local and International Investments: Creating a flexible and transparent investment environment.

3️⃣ Developing Human Capital: Implementing training and education programs to bridge the skills gap in future industries.

4️⃣ Driving Digital Transformation: Positioning Saudi Arabia as a leader in smart cities and digital infrastructure.

5️⃣ Leveraging Media as an Economic Catalyst: Ensuring that Vision 2030 is effectively communicated to the world with clarity and impact.

🎯 Conclusion: Saudi Arabia is not just experiencing economic development—it is building the economy of the future, leveraging technology, investments, and smart media to ensure continuous growth and sustainability.

🔹 The Future of Saudi Arabia’s Economy: Opportunities and Challenges

Since the launch of Vision 2030, the Saudi economy has undergone a fundamental transformation in its structure and growth drivers, focusing on economic diversification and reducing oil dependency. With bold reforms and significant investments in technology, infrastructure, renewable energy, and non-oil industries, the Kingdom is poised for sustainable economic growth aligned with global shifts.

🔹 Key Pillars of Saudi Arabia’s Economic Growth

1️⃣ Economic Diversification: Reducing Oil Dependency

✅ Growth of Non-Oil Sectors: Increased contributions to GDP from tourism, technology, financial services, and industry.

✅ Renewable Energy Industry: Saudi Arabia is heavily investing in projects like NEOM Green Hydrogen, one of the largest global ventures in this sector.

✅ Expansion in Manufacturing and Mining: The National Industrial Development and Logistics Program aims to position the Kingdom as a global hub for advanced industries and mining.

2️⃣ Digital Transformation and Technology

✅ Saudi Arabia is aiming to become a regional and global leader in digital transformation, with increased investments in AI, cloud computing, and IoT.

✅ NEOM and Smart Projects: NEOM is the Kingdom’s flagship innovation and technology hub, focusing on advanced robotics and smart cities.

✅ Expanding the ICT sector, enhancing digital infrastructure, and fostering entrepreneurship in the tech industry.

3️⃣ Enhancing Investment Climate and Global Integration

✅ Saudi Arabia has emerged as a major global investment hub, with increasing foreign direct investment due to business-friendly reforms.

✅ Privatization Programs: The government is privatizing multiple sectors to improve efficiency and attract private investment.

✅ Legal and financial reforms have simplified business operations and increased transparency for international investors.

4️⃣ Human Capital Development

✅ Upskilling the Saudi workforce through education and training programs aligned with emerging industries like AI, data analytics, and renewable energy.

✅ The Human Capability Development Program is enhancing education and training to meet global labor market demands.

🔹 Challenges Facing Saudi Arabia’s Economy

🔴 Global Economic Volatility: Fluctuating oil prices and monetary policies require further economic adjustments.

🔴 Geopolitical Shifts: Regional and global tensions impact investment flows and economic growth.

🔴 Keeping Up with Technological Advancements: The Kingdom must strengthen its digital infrastructure to maintain leadership in technological innovation.

🔴 Managing Fiscal Deficits and Financial Stability: While economic reforms have improved fiscal management, further adjustments are needed to ensure long-term stability.

🔹 Future Economic Scenarios

📈 Optimistic Growth Scenario (Most Likely):

✅ Continued investments in megaprojects like NEOM, Qiddiya, and the Red Sea Project, fostering economic diversification.

✅ Increased foreign investments, driven by economic reforms and investor confidence.

✅ Expansion of the non-oil sector’s contribution to GDP, ensuring long-term stability.

📉 Potential Economic Challenges Scenario:

🔴 Slower reform implementation or failure to adapt to technological advancements could slow down Vision 2030’s progress.

🔴 Continued relative oil dependency, making the economy vulnerable to global energy market fluctuations.

🎯 Conclusion: Saudi Arabia’s economic future is promising, but continued structural reforms, investment in education, and technological advancements are essential for sustainable global leadership.