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Saudi Arabia Advances Vision 2030 with Manufacturing, Localization, Economic Growth

Saudi Arabia Advances Vision 2030 with Manufacturing, Localization, Economic Growth
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Saudi Arabia Advances Vision 2030 with Manufacturing, Localization, Economic Growth

Saudi Arabia Advances Vision 2030 with Manufacturing, Localization, Economic Growth

As Saudi Arabia celebrated its 95th National Day on Tuesday, the Kingdom is showcasing rapid economic reforms designed to cement its role as a global business hub.

Powered by its Vision 2030 diversification strategy, Riyadh has rolled out regulatory reforms, investment incentives and talent programs that are attracting multinational firms. International companies are expanding amid localization and manufacturing projects, while new visa categories are luring foreign expertise to support ambitions to turn the Kingdom into a regional hub for technology, innovation and sustainability.

Saudi Arabia’s non-oil economy is forecast to grow 4.3% in 2025, supported by strong domestic demand and credit growth, Jadwa Investment said.

Technology hub

Digital infrastructure, flexible regulations and research incentives have made the kingdom a magnet for global technology players.

Chinese PC maker Lenovo said Saudi Arabia had established itself as a global hub combining technology, innovation and sustainability under Vision 2030.

Giovanni Di Filippo, the company’s vice president and general manager in Saudi Arabia, told Asharq Al-Awsat the firm had set up its regional headquarters in Riyadh and broken ground on a sustainable manufacturing facility that will produce millions of “Made in Saudi” computers and servers by 2026.

Through partnerships such as a recent tie-up with state-backed tech and industrial firm Alat, Lenovo aims to create jobs, build local skills, strengthen supply chains and bolster the kingdom’s digital economy.

Alat, launched by the Public Investment Fund in February 2024, seeks to establish Saudi Arabia as a global hub for sustainable industries and clean energy.

Labor market reforms

Alongside investments, Saudi Arabia is overhauling its labor market to attract global talent while training nationals.

Human capital is at the heart of the transformation, said Haider Hussain, managing partner for the Middle East and North Africa at immigration consultancy Fragomen.

He cited new visa categories, long-term residency pathways and human resources policies that have opened the door to international talent, alongside heavy investment in training young Saudis for a diversified economy.

He added that reforms in labor mobility reflect a strategic commitment to put people at the center of national transformation.

Future sectors

Saudi Arabia is also moving into frontier industries, including space. Martijn Blanken, chief executive of New Space Group, said the sector was a vital growth driver that boosts the Kingdom’s global standing in innovation.

He pledged to support local satellite services and space industries through technology transfer, localization and training to help Saudi Arabia become a leading player in the field in line with Vision 2030.

Investor appeal

Analysts say Saudi Arabia’s business environment is increasingly attractive thanks to digital infrastructure, special economic zones, flexible regulations, foreign ownership laws and training programs to boost local competitiveness.

The localization push is intersecting with rising foreign investment to create integrated supply chains and advanced manufacturing capacity, strengthening the Kingdom’s role as a regional hub for emerging technologies.

Economic outlook

The International Monetary Fund recently raised its forecast for Saudi Arabia’s real GDP growth to 3.6% in 2025, with momentum expected to continue in 2026, citing strong non-oil activity, historically low inflation and record-low unemployment.

With mega-projects underway and partnerships with global firms expanding, Saudi Arabia is pressing ahead with its long-term goal: building a diversified and sustainable economy.

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Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The current oil supply crisis shows there is underinvestment in oil refining as demand holds resilient, Saudi state-owned Aramco's vice president of market analysis and sustainability, Musaab Al Mulla, said on Tuesday.

Around 3 ⁠million barrels per ⁠day of refining capacity closed between 2020 and 2023, Al Mulla said at the S&P Global Energy Middle East ⁠Petroleum and Gas Conference in London.

"Now we realize if you have those refineries you may have definitely mitigated the impacts of the crisis today," he said.

The war in Iran, attacks on energy infrastructure and ⁠Iran's effective ⁠closure of the Strait of Hormuz followed by a US naval blockade, have removed around 14 million bpd of oil supply from Middle East producers to the global market.

Business

OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
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OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)

The war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned Wednesday.

Global economic growth is now forecast to slip to 2.8 percent for 2026 if Gulf exports of oil and gas return to pre-conflict levels in the third quarter, the group of 38 industrialized countries said in its quarterly update.

Previously the OECD had forecast full-year global growth of 2.9 percent.

But if the Middle East war continues into next year, however, global growth could slow to 2.1 percent, the OECD said -- well below the average annual growth of 3.4 percent seen from 2013 to 2019, before the Covid pandemic.

"The longer the disruptions last, the larger the economic and social costs become," the group's chief economist Stefano Scarpetta said in the report.

Many countries would risk falling into recession, he noted, and a drop in investment spending -- "including in energy-intensive AI" -- would likely push up unemployment.

Sustained high prices for energy as well as fertilizer and other key products from hydrocarbon production in the Gulf would weigh especially hard on developing countries that have "higher shares of energy and food in household consumption".

Even if the war sparked by US and Israeli strikes on Iran in late February ends in the coming weeks, the OECD forecast global inflation rising to 4.0 percent this year from 3.4 percent in 2025.

In this "time-limited disruption scenario", the group expects US growth to slow to 2.0 percent this year and 1.8 percent in 2027, after growing 2.1 percent last year.

In the eurozone, where many countries are highly dependent on energy imports, GDP growth will slump to 0.8 percent this year after 1.4 percent last year, assuming a Mideast ceasefire is secured in the coming weeks.

Business

Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia's non-oil private sector expanded at the fastest pace in three months in May as domestic demand improved and supply chains stabilized, while business optimism remained subdued amid conflict in the region, a survey showed on Wednesday.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index, compiled by S&P Global, rose to 52.8 in May from 51.5 in April. The 50 mark separates growth from contraction, Reuters reported.

Output accelerated at the ⁠fastest pace in ⁠three months after March's downturn following the start of the Iran war, as firms cited normalizing working conditions, revived contracts and stronger local demand.

Export sales fell for a third straight month, hit by shipping disruption, higher freight and fuel costs, geopolitical tensions and stronger competition. The pace of decline eased only modestly from April's survey-record contraction.

However, supply chains improved, with suppliers' delivery times shortening for the first time in three months as ⁠firms relied ⁠more on local vendors. Backlogs of work rose for an 11th consecutive month, albeit moderately.

“Overall, the latest PMI reading supports the expectation that Saudi Arabia’s non-oil economy will continue its upward trend during the remainder of 2026," said Naif Al-Ghaith, Riyad Bank's chief economist.