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.



Foreign Investors Consolidate their Bets on Saudi Arabia as Economic Reforms Gather Pace

The King Abdullah Financial District in Riyadh. (SPA)
The King Abdullah Financial District in Riyadh. (SPA)
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Foreign Investors Consolidate their Bets on Saudi Arabia as Economic Reforms Gather Pace

The King Abdullah Financial District in Riyadh. (SPA)
The King Abdullah Financial District in Riyadh. (SPA)

Saudi Arabia is no longer just an oil-price bet for global investors. It is becoming a core emerging-market play. That is the view of Emmanuel Laurina, head of Middle East, Africa, and official institutions at State Street, one of the world’s major financial services and asset management firms.

Speaking to Asharq Al-Awsat, Laurina said a structural shift is reshaping how global institutions view the Kingdom, and why State Street is placing a major bet on its market.

Laurina explained that Saudi Arabia has moved from an oil-linked allocation to a central component of emerging-market portfolios.

The shift is being driven by a broader range of investable sectors, particularly finance, energy, and raw materials, giving investors real diversification in a world where many emerging markets are dominated by technology, he stressed.

Saudi Arabia’s inclusion in major global equity and bond indexes has helped anchor foreign inflows and strengthen the market’s role in international allocations, he said. Vision 2030 reforms have also widened opportunities beyond oil.

What is drawing investors now?

Laurina said market liberalization and the opening of share trading to foreign investors through the development of the Saudi Exchange, Tadawul, have helped attract liquidity and deepen international participation.

He also pointed to Saudi Arabia’s push into artificial intelligence and digital infrastructure as the Kingdom seeks strategic partnerships with major global technology companies.

In fixed income, Laurina said Saudi government bonds carry a strong A+ credit rating and offer a positive yield spread over US Treasuries, making them attractive for investors seeking dollar-denominated diversification.

Access has also improved sharply, he said. The abolition of the qualified foreign investor regime and the shift toward direct ownership of listed securities mark a major step forward.

Still, some structural limits remain. These include foreign ownership caps at individual and aggregate levels, and the need to trade through local brokers. Laurina said the listing of foreign exchange-traded funds in the Kingdom remains only partly developed because Saudi Arabia’s domestic market-making ecosystem is still limited.

New fund targets Saudi equities

Laurina said State Street recently launched an exchange-traded fund in partnership with the Saudi Public Investment Fund, giving international investors access to Saudi equities through a systematic active strategy that seeks to beat the benchmark across full market cycles.

The launch reflects rising client demand and a clear shift in the Saudi market’s composition, away from oil stocks and toward sectors such as healthcare, utilities and technology, he went to say.

ETFs, he said, are only one part of a wider ecosystem that includes institutional mandates, strategic partnerships, index-driven flows and growing activity in private markets, especially in Vision 2030 priority sectors.

Laurina said the Middle East and Africa are central to State Street’s future growth strategy.

The strategy rests on three pillars: building institutional asset classes in the Middle East and North Africa, internationalizing Sharia-compliant portfolios, and meeting growing demand for regionally focused investment solutions.

Riyadh became State Street’s 11th global investment center in 2024, he said, as the company continues to expand its local investment and research team.

Laurina said Saudi Arabia is now a pivotal market and a key growth engine in State Street’s Middle East and Africa strategy.


Standard Chartered CEO Seeks to Reassure Staff over AI-linked Job Cuts

FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
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Standard Chartered CEO Seeks to Reassure Staff over AI-linked Job Cuts

FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa

Standard Chartered CEO Bill Winters sought to assuage staff concerns on Wednesday, a day after saying that the bank will cut thousands of jobs over the next four years as it moves to replace "lower-value human capital" with technology.

"Many of you will have seen media coverage following the Investor Event in Hong Kong, particularly the reporting around automation, AI, and workforce changes," Winters said in a memo to the bank's ⁠staff reviewed by ⁠Reuters.

"I know this may be unsettling when reduced to simple headlines or a quote out of context," he said.

A spokesperson for the bank confirmed the memo's content.

StanChart said on Tuesday it would cut 15% of ⁠its corporate function roles by 2030, which, according to a Reuters calculation, would result in nearly 8,000 redundancies out of its more than 52,000 staff in such roles.

The bank cited AI as a driver to slim its operations in its quest to increase profitability and tackle competition.

"It's not cost-cutting. It's replacing in some cases lower-value human capital with the financial capital ⁠and ⁠the investment capital we're putting in," Winters said on Tuesday.

In his memo to staff on Wednesday, Winters said the bank had been open that its workforce will evolve.

"Some roles will reduce in number, some will change, and new opportunities will emerge. We will continue to prioritize investment in reskilling and redeployment wherever we can," he said.

"Where changes do happen, we will handle them with thought and care," he added.


Ukraine Ally Britain Eases Sanctions on Russian Oil as Fuel Prices Surge Over Iran Conflict

A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
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Ukraine Ally Britain Eases Sanctions on Russian Oil as Fuel Prices Surge Over Iran Conflict

A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)

The UK government has quietly watered down sanctions on Russian oil in an effort to shelter Britons from the cost-of-living squeeze triggered by the closure of the Strait of Hormuz.

A trade license that came into effect Wednesday permits the import of Russian oil that has been refined into jet fuel and diesel in third countries, such as India and Türkiye.

The US-Israeli war on Iran and Iran's closure of the strait, through which about a fifth of the world's oil usually passes, has sent fuel prices soaring around the world and sparked concerns about a shortage of jet fuel.

UK Treasury minister Dan Tomlinson said the changes are “for a time limited period and on a very specific issue.”

Britain has been one of Ukraine's strongest allies since Russia's full-scale invasion in 2022, and the government insist its sanctions against Russia remain among the toughest in the world.

But lawmaker Emily Thornberry, who chairs Parliament’s Foreign Affairs Committee, said Ukrainians would “feel very let down” by the move. She said Ukraine’s allies should keep squeezing Russia’s oil industry, because it “is absolutely crippling their economy.”

The US has also eased Russian sanctions. Earlier this week, Treasury Secretary Scott Bessent extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.

On Tuesday, finance ministers from the US, Britain and the other Group of Seven wealthy nations issued a joint statement reaffirming “our unwavering commitment to continue to impose severe costs on Russia in response to its continued aggression against Ukraine.”