Analysts: Vision 2030 Accelerates Saudi Economy Reshaping Through Diversification

Analysts: Vision 2030 Accelerates Saudi Economy Reshaping Through Diversification
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Analysts: Vision 2030 Accelerates Saudi Economy Reshaping Through Diversification

Analysts: Vision 2030 Accelerates Saudi Economy Reshaping Through Diversification

Saudi Arabia has successfully reshaped its economic base in recent years, transitioning from a model primarily reliant on oil to a more diverse and sustainable economy, driven by the Vision 2030 programs launched by Crown Prince Mohammed bin Salman.

Saudi Arabia continues its transformative path under Vision 2030, entering a new phase focused on sustainable growth and consolidating achievements, following years of economic and structural reforms that reshaped the national economy.

The 2025 annual report shows that the Kingdom has successfully established a more diverse and resilient economic model, supported by the increasing contribution of non-oil sectors and the expansion of the production and investment base.

This Vision, which included the implementation of over 1,000 legislative reforms, has contributed to improving the business environment, enhancing Saudi Arabia's attractiveness, and building effective and growing economic sectors.

This has positioned the Kingdom among the fastest-growing economies globally, strengthening its ability to face global economic fluctuations.

Furthermore, Vision 2030 has successfully outlined clear strategic objectives to activate Saudi Arabia's economic strengths through the development of key sectors including aviation, tourism, logistics, industry, and mining, among others. This is supported by massive investments and major projects that have reshaped the economy's structure
Non-oil activities have served to bolster the Saudi economy as the “main engine of growth,” which has contributed to enhancing its competitiveness and placing it at the forefront of active economies regionally and globally.

This momentum is based on the expansion of diverse and promising sectors, including tourism and entertainment, as well as industry, transport, and logistics, among others. This has boosted their contribution to the output, after non-oil activities recorded a historic level of 2.6 trillion riyals ($693 billion) in 2024, growing by 6 percent.

Economic Structure Transformation

Hamza Dweik, Head of Trading for the Middle East and North Africa at Saxo Bank, affirms that the results of Vision 2030 have clearly demonstrated “the transformation of the Kingdom's economic structure away from total reliance on oil.”

He pointed to the remarkable expansion in non-oil sectors and the increase in non-oil government revenues, which contributed to reducing the economy's sensitivity to oil price fluctuations.

In remarks to Asharq Al-Awsat, he clarified that institutional and regulatory reforms, including developing the business environment, financial markets, enhancing workforce participation, and attracting foreign investment, have contributed to increasing the inflow of local and international capital, which is a fundamental element in achieving economic diversification. He added that these transformations have altered the investment outlook for Saudi Arabia, which is now seen as a multi-sector economy, supported by the depth of its financial markets and the increase in initial public offerings.

Dweik pointed out that the diversification process is still ongoing, noting that oil will remain an important factor in financing development. He expects the next phase to focus on enhancing productivity and efficiency, ensuring the sustainability of emerging sectors without reliance on government support, emphasizing that the quality of this diversification will be the true measure of future success.

Accelerated Growth of Non-Oil Sectors

Firas Al-Bayrouti, Regional Director for Milestone Systems in Saudi Arabia, states that the features of the new economy are evident in “the accelerated growth of non-oil sectors, increased investments, and continuous development of modern infrastructure.”

He noted that these factors reflect “strategic planning aimed at building a more diverse and resilient economy.”

He added that Vision 2030 has opened wide horizons for vital sectors such as tourism, technology, logistics, and entertainment, in addition to fostering an environment of investment and innovation, with the growing role of the private sector as a key driver of long-term economic growth.

Al-Bayrouti confirmed to Asharq Al-Awsat that data-backed smart technologies will play a pivotal role in the next phase, both in supporting infrastructure and enhancing security and operational efficiency. He pointed out that technology has become an essential part of building more efficient and secure cities and institutions.

Major Projects

Asrar Khazi, Regional Director for Euro Systems in Saudi Arabia, believes that the economic transformation is also embodied in “a comprehensive reformulation of the urban environment.”

He noted that the major projects in the Kingdom have surpassed traditional frameworks, pushing the boundaries of design, engineering, and sustainability to unprecedented levels.
He explained that these projects represent integrated economic systems that contribute to attracting investments and stimulating new sectors, thereby fostering sustainable growth.

Additionally, they form a modern architectural identity that blends advanced technologies with cultural dimensions, citing projects like Diriyah as an example.

Khazi indicated that this trend boosts demand for advanced engineering solutions and contributes to developing local capabilities and supply chains, which creates long-term economic value and strengthens the urban sector's role as a driver of economic diversification.



FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
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FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)

The FII institute, run by a global nonprofit foundation of ⁠Saudi sovereign wealth ⁠fund PIF, has named ⁠Princess Maha bint Mishari bin Abdulaziz Al Saud as its CEO, according to ⁠the ⁠institute's website.

“With more than 25 years of leadership experience spanning healthcare, academia, strategic partnerships, and international engagement, Dr. Al Saud has built a distinguished career centered on creating impact through collaboration and institution-building. She has worked across the public, private, and nonprofit sectors to advance initiatives that strengthen organizations, expand opportunity, and improve lives,” the website said.

Before joining FII Institute, she served as Vice President of External Relations and Advancement at Alfaisal University.

She has helped expand strategic partnerships, deepen international engagement, and elevate the university’s global standing in education, research, and innovation.

“A recognized advocate for leadership, healthcare transformation, education, and human development, Dr. Al Saud has represented Saudi Arabia at major international forums, including the G20, and the fourth Eurasian Women’s Forum,” FII Institute said.

“Dr. Al Saud holds an MBBS degree and is certified by the American Board of Internal Medicine, having completed her residency training at George Washington University. Her executive credentials include the Senior Executive Leadership Program at Harvard Business School, IMD Business School and she holds the prestigious, peer-reviewed distinction of Master of the American College of Physicians (MACP),” it added.


Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
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Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)

Egypt's Minister of Petroleum Karim Badawi said on Wednesday that the full settlement of arrears owed to oil and gas partners marked a turning point for the sector.

Badawi ‌said payment ‌of the arrears, "restores ‌investor confidence ⁠and paves the ⁠way for increased upstream activity and accelerated project development".

Egypt had accumulated about $6.1 billion in arrears to foreign oil companies by June ⁠30, 2024 due to ‌a ‌prolonged foreign currency shortage that delayed payments ‌and weighed on investment and ‌gas output. The shortage has since eased, though some companies have said that arrears kept ‌accumulating.

The minister said clearing the debt removed ⁠a ⁠key obstacle to new investment inflows and would support increased exploration, drilling and field development activity, including projects in the Mediterranean where development typically requires significant capital spending and years of work before production begins.


Saudi Economy Demonstrates Competitive Strength, Expands 3% in First Quarter

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
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Saudi Economy Demonstrates Competitive Strength, Expands 3% in First Quarter

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

Saudi Arabia’s economy has once again demonstrated the strength of its fundamentals and its ability to withstand regional shocks, posting real GDP growth of 3 percent year-on-year in the first quarter of 2026, despite escalating tensions across the Middle East that have disrupted supply chains and global trade flows.

The final official figures surpassed the earlier flash estimate of 2.8 percent. The upward revision reflected higher estimates from the General Authority for Statistics (GASTAT), which raised growth projections for both oil and non-oil activities to 2.9 percent. The Kingdom had recorded growth of 5.2 percent in the fourth quarter of 2025.

Saudi Arabia’s performance amid logistical challenges, including shipping disruptions through the Strait of Hormuz, recently received backing from an International Monetary Fund mission.

Following consultations in Riyadh, IMF experts said the Kingdom had successfully mitigated the effects of regional conflict and eased logistical bottlenecks through resilient infrastructure, the rapid deployment of the East-West pipeline and Red Sea ports, and strong financial buffers provided by the Public Investment Fund and a stable banking sector.

The IMF nevertheless revised its 2026 growth forecast for Saudi Arabia to 2 percent from a previous estimate of 3.1 percent, citing regional instability.

Broad-based expansion

According to GASTAT, first-quarter growth was driven by gains across all major sectors of the economy. Oil and non-oil activities each expanded 2.9 percent year-on-year, while government activities rose 1.5 percent.

On a seasonally adjusted basis, real GDP declined 1.2 percent from the fourth quarter of 2025, reflecting a 6.8 percent contraction in oil activities. Government and non-oil sectors, however, continued to post quarterly growth of 1.4 percent and 0.3 percent, respectively.

Financial services, insurance and business services recorded the strongest performance among detailed sectors, growing 5.4 percent year-on-year and 1.1 percent quarter-on-quarter.

Manufacturing activities, excluding oil refining, expanded 4 percent annually. Crude oil and natural gas activities grew 3.6 percent from a year earlier, despite a 7 percent quarterly decline linked to shipping disruptions.

Consumption and investment remain strong

Government final consumption expenditure rose 11.3 percent year-on-year and 8.5 percent quarter-on-quarter, while private consumption increased 5.3 percent annually.

Gross fixed capital formation climbed 3.9 percent year-on-year and 7.5 percent quarter-on-quarter, underscoring continued investment momentum. Exports increased 1.4 percent from a year earlier, while imports fell 5.5 percent.

Non-oil activities remained the primary driver of economic growth, contributing 1.7 percentage points to overall GDP expansion. Oil activities added 0.8 percentage points, while government activities and net taxes contributed 0.3 and 0.2 percentage points, respectively.

The IMF also praised the Saudi Central Bank (SAMA) for maintaining a countercyclical capital buffer of 100 basis points, noting that the Saudi riyal’s peg to the US dollar continues to bolster monetary-policy credibility and financial stability.

On structural reforms, the fund welcomed the recalibration of the Public Investment Fund’s 2026-2030 strategy, aimed at allocating capital more selectively and encouraging greater private sector participation.

It said continued progress toward the objectives of Vision 2030, including deeper capital markets, stronger alignment between education and labor market needs, and broader adoption of artificial intelligence and logistics technologies, remains essential to achieving sustainable economic diversification and safeguarding prosperity for future generations.