In 2025, during the World Economic Forum, which gathered global economic elites to discuss the future trajectory of the world economy, the Saudi Finance Minister captured significant attention with his remarksHe emphasized the crucial importance of economic diversification in Saudi Arabia, elaborating on the core objectives of the Vision 2030 plan, particularly the need to move away from an excessive dependence on oil. “Economic diversification is the essential concept behind Saudi Arabia's Vision 2030, aimed at driving sustainable long-term development for the nation.” This statement resonated deeply, establishing a bold tone for Saudi Arabia's future economic endeavors.

Historically, Saudi Arabia has been among the largest oil exporters globally, with oil revenues forming the backbone of its economyHowever, the volatility of international oil prices in recent years has been striking, particularly evident when the COVID-19 pandemic caused oil prices to crash in early 2020, leading to a massive economic shock for the Kingdom

Advertisements

Concurrently, the global trend towards energy transition has been increasingly clear, with rapid advancements in alternative energy sources such as solar and wind powerThis reality has prompted Saudi Arabia to understand that an over-reliance on oil-based economic development is unsustainable in the long run.

Under the framework of Vision 2030, Saudi Arabia has been actively pushing for growth in non-oil sectorsIn technology, the Kingdom has significantly increased investments in digital infrastructureToday, it stands as one of the leading countries in terms of 5G speeds, boasting over 12,000 5G signal towers installedThis leap has attracted tech giants like Alibaba, Google, and Oracle to establish regional centers in the countryHuawei has also set up a regional cloud center in Riyadh and plans to train 200,000 developers while establishing partnerships with 1,000 local entities and investing in 2,000 startupsIn tourism, Saudi Arabia is drawing considerable numbers of tourists with its unique desert landscape and ancient cultural sitesThe government has launched various incentives to promote tourism, such as streamlining visa processesMoreover, the manufacturing sector is gradually taking shape, with Saudi Arabia leveraging its ample resources and continuously improving infrastructure to attract manufacturing companiesThe financial services sector has also seen progress, with the Saudi financial market opening up to encourage participation from more international financial institutions.

The Finance Minister mentioned that these efforts have already yielded significant resultsNon-oil revenues in Saudi Arabia are rising year after year, with the tourism industry blossoming and the Red Sea project emerging as a key tourist hotspot that spurs economic growth in surrounding areas

Advertisements

Investments in green energy have also formed new economic growth points as Saudi Arabia continues to funnel resources into solar, wind, and other renewable sectorsThe ambitious construction of “New City” NEOM stands as a culmination of Saudi Arabia's aspirations regarding technological innovation and sustainable development, encompassing an area of 26,500 square kilometers and focusing on nine main industries including energy, biotechnologies, food production, advanced manufacturing, and entertainment, to create a new model for economic development.

During the forum, the Saudi Finance Minister also spoke about collaboration with the United States, expressing optimism regarding the new U.S. administration's policiesSaudi Arabia plans to invest $600 billion in the United States over the next four years across diverse sectors including technology, energy, infrastructure, and financeIn technology, Saudi Arabia aims to invest in high-tech American enterprises to acquire advanced technologies and innovative ideas, fostering the development of its own technology sectorThe collaboration in the energy sector leverages both nations’ strengths in the energy industry chain, promoting resource sharing and complementary advantagesInfrastructure investments will aid the U.S. in enhancing its infrastructure while allowing Saudi Arabia to gain valuable experience through cooperationFinancial cooperation seeks to bolster ties between the two countries’ financial markets.

The Saudi government desires to deepen its economic partnership with the United States to exploit American technological, talent, and market advantages, thus furthering its own economic transformation

Advertisements

The growth in the U.S. economy presents global economic benefits from which Saudi Arabia hopes to gain, enhancing the reach of Saudi products and services in international markets.

The Finance Minister stressed that Saudi Arabia possesses a “solid fiscal buffer.” In recent years, the country has managed its expenditures judiciously, optimized the fiscal budget, and reduced unnecessary spendingIt has also revised tax policies to adjust rates appropriately and enhance tax collection efficiency while increasing reserves to heighten financial resilience and risk management capabilitiesEven amid global economic uncertainties, such as anticipated slowdowns in growth in 2024, Saudi Arabia is poised to maintain stable economic growth while implementing its long-term development strategiesThis robust fiscal foundation provides solid assurance for Saudi Arabia to realize its economic transformation and ambitious global investment plans, emboldening the country on its path towards Vision 2030.

The execution of Vision 2030 is a decisive step for Saudi Arabia in its quest for economic diversificationBy curtailing reliance on oil revenues, the structure of the Saudi economy is continually being optimized, enhancing its stability and capability to withstand risksStrengthening cooperation with international markets not only solidifies Saudi Arabia’s economic standing in the region but also injects new vitality into the global economySaudi Arabia's involvement in green energy, technological innovation, and engagement in global capital markets will further redefine its role on the international stage.

The transformation journey of Saudi Arabia offers valuable lessons for other resource-based economies

Amid the shifting global economic landscape, Saudi Arabia is steadily advancing towards the goals of economic diversification and sustainable development, with a future full of boundless possibilities.