Economic diversification goals

The Crown Prince of Saudi Arabia, Mohammed bin Salman, seeks to move the country away from its reliance on oil by promoting private sector growth and reducing the state's central role in the economy. This effort is part of a broader strategy to position Saudi Arabia as a major global power in a post-oil era.

Oil's central role

Saudi Arabia holds the second-largest proven oil reserves globally, amounting to 267.2 billion barrels, and is the largest oil exporter, shipping 6 million barrels per day. The state controls most of these resources, which makes the economy highly dependent on oil prices and vulnerable to market fluctuations.

Youth and economic challenge

With 63% of Saudi Arabia's 34.5 million population under the age of 30, the country faces the challenge of providing opportunities outside of the oil industry. This has driven the need for economic transformation and new sectors of employment.

Vision 2030 and diversification

Launched in 2016, Vision 2030 is a comprehensive plan aimed at transforming Saudi Arabia economically and socially. It focuses on developing sectors such as mining, tourism, and technology to reduce dependence on oil and create a more diversified economy.

Mining potential and rare earths

Saudi Arabia has significant mineral resources, including gold, copper, zinc, and rare earths, estimated to be worth $2.5 trillion. The country is seeking to become a major player in global mineral supply chains, with a joint venture announced in 2025 to build a rare earth refinery on Saudi soil.

Tourism growth and new projects

Saudi Arabia has rapidly expanded its tourism sector, welcoming 30 million foreign visitors in 2024. The government is investing heavily in new developments, such as the Red Sea Project and the futuristic city of Neom, aiming to attract 70 million visitors by 2030.

Global events and soft power

To enhance its international profile, Saudi Arabia is positioning itself as a hub for global events, including the Dakar Rally, the World Expo in 2030, and the FIFA World Cup in 2034. These events are part of a broader strategy to increase the country's soft power and global influence.

Challenges in implementation

Despite progress, the non-oil share of Saudi Arabia's GDP remains below targets, with tourism contributing about 5% instead of the aimed 10% by 2030. The country also faces difficulties in attracting foreign investment and funding its ambitious projects, leading to delays and budget cuts in some initiatives.

Future projects and competition

Saudi Arabia is focusing on infrastructure for upcoming global events, such as the World Expo. However, projects like the King Salman International Airport will need to compete with established hubs in Dubai and Doha to achieve their goals of transforming Riyadh into a global air transport center.