SAUDI ARABIA
Saudi Arabia is no longer just a major oil exporter; it is positioning itself as the region’s most ambitious business hub, with growing influence on the global stage. At the center of this shift is Vision 2030, a national transformation plan driven by profound government investment, regulatory reforms, and economic diversification.
This report gives a snapshot of the Saudi economy, explains what Vision 2030 is, what sectors are in focus and why one should consider expanding their operations to the country.
From Oil Giant to Diversified Economy
COUNTRY BRIEF
[1] Worldometer. (2024c). Saudi Arabia population (2019).
[2] World Economics. (2025). Saudi Arabia in 2025. World Economics.
[3] Okewoye, S. (2024). The top 25 economies in the world: Ranking the richest countries in the world. Diplomatic Watch.
Saudi’s Rise as a Business Destination
SAUDI ARABIA EMERGES AS ONE OF TOP PERFORMERS IN G20
Saudi Arabia is the only Arab nation in the G20, a group representing around 80% of global GDP
In 2025, Saudi Arabia’s GDP is projected to grow by 3.8%, outpacing the G20 average of 3.1% and outperforming major economies like the U.S. and European Union.
Unlike other large emerging markets such as India, Indonesia, or Brazil, Saudi Arabia offers a capital-intensive, state-backed development model with faster implementation timelines, fewer bureaucratic hurdles, and stronger alignment between public and private sector goals.
[4] International Monetary Fund. (2025). World Economic Outlook Update: Global economy – Tenuous resilience amid persistent uncertainty
SAUDI ARABIA’S $1 TRILLION GDP MARKS A MAJOR SHIFT TOWARD A DIVERSIFIED, HIGH-INCOME ECONOMY DRIVEN BY NON-OIL SECTORS
In 2024, Saudi Arabia’s GDP exceeded $1 trillion, with the non-oil sector contributing over 50%.[5]
The World Bank classifies Saudi Arabia as a high-income economy, ranked 19th globally by nominal GDP[6] . Growth is now driven by technology, tourism, and renewable energy, building a more dynamic future economy.
[5] Grassani, M. (2025, April 14). Saudi Arabia’s big push to attract investment. Law Middle East.
[6] Worldometer. (2024). GDP by country.
[7] World Bank, IMF, Consultancy.org analysis
What is Vision 2030?
VISION 2030 IS TRANSFORMING SAUDI ARABIA INTO A DIVERSE, GLOBAL-READY ECONOMY
As the world’s largest oil exporter, Saudi Arabia historically relied heavily on oil. In 2016, it launched Vision 2030, a national transformation plan to reduce oil dependence, attract foreign investment, and diversify the econom.
The strategy targets high-potential sectors including tourism, entertainment, logistics, renewable energy, and digital infrastructure, while fostering private sector growth, sustainability, and quality of life.
The Kingdom aims to position itself as a global hub connecting Asia, Africa, and Europe, and progress to date signals a shift toward a diversified, tech-enabled, and opportunity-rich economy. [8]
[8] Saudi Vision 2030. (2024). Saudi Vision 2030.
THREE STRATEGIC PILLARS DRIVE VISION 2030, BACKED BY KPIS, EXECUTION PROGRAMS AND INITIATIVES
HOW VISION 2030 IS IMPLEMENTED: Vision 2030 is implemented through
13 Vision Realization Programs (VRPs), each responsible for delivering a portion of the plan’s 96 strategic objectives.
Each VRP is led by a minister-level chairman and supported by a program committee that oversees execution. These programs have detailed delivery plans outlining international benchmarks, KPIs, timelines, budgets, and coordination with other VRPs and government entities. [9]
[9] Vision 2030. (2022). Vision 2030 overview.
CORE PILLARS OF VISION 2030
ABITIOUS NATION
• Enhance government effectiveness
• Enable social responsibility
VIBRANT SOCIETY
• Strengthen Islamic values
• Offer a full filling and healthy life
THRIVING ECONOMY
• Grow & diversify the economy
• Increase Employment
THRIVING ECONOMY - 2030 Targets
VISION 2030 IS DELIVERING REAL PROGRESS, WITH THE MAJORITY OF NATIONAL KPIS, AND INITIATIVES EITHER COMPLETED OR ON TRACK
KPIs
93%
Programs and national strategy KPIs either fully archived or on track for 2024
INITIATIVES
85%
Initiatives either completed or progressing on track for 2024
Growth Drivers: FDI & Startups
The Kingdom’s Rise as a Global Investment Hub
ENABLING GLOBAL BUSINESS ENTRY: HOW SAUDI ARABIA
IS EXECUTING VISION 2030 AT SCALE
What changed?
100% Foreign Ownership
Centralized Licensing
Under Ministry of Investment
Improved IP Protection
Investor Incentives
10-year Saudization Exemption
Tax Breaks
Priority in Government Tenders
NEOM, KAEC & Sepcial Economic Zones
FDI MOMENTUM: CONFIDENCE IN THE KINGDOM IS RISING, REFLECTING SUSTAINED GLOBAL INVESTOR TRUST
3 Pillars are divided into:
6
Overarching Objectives
27
Branch Objectives
96
Strategic Objectives
Saudi Arabia’s growing appeal to foreign investors is reflected in its rise to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index.
FDI in numbers
STRONG YoY GROWTH
The value of FDI inflows into the Saudi economy reached approximately USD 6.42 billion in Q1 2025,
up 24% YoY [10]
[10] Argaam Special. (2025). Saudi Arabia’s FDI reaches SAR 22.2B in Q1 2025. ArgaamPlus.
2024 QUARTERLY INCREASE
Foreign direct investment (FDI) inflows to Saudi Arabia reached USD 5.92 billion in Q1 2025, a 44% rise compared to a year earlier [10]
AMBITIOUS 2030 FDI TARGET
The Kingdom targets FDI to reach 5.7% of GDP as part of Vision 2030 (MISA, 2024) [10]
SAUDI ARABIA IS LEADING MENA IN VC FUNDING, WITH A 49% CAGR (2020-2024) [11]
In 2024, Saudi Arabia outperformed other MENA markets, capturing 40% of all VC funding and 31% of total number of deals.
In Q1 2025, this momentum accelerated further, with Saudi startups raising 58% of VC funding in the region and 41% of deals.
With government backing, investor interest, and growth in sectors like AI, the Kingdom is strengthening its position as a competitive tech and startup hub.
The next phase will depend on successful exits, deeper tech integration, and sustained private-sector engagement.
[11] Tracxn. (2025b, July).
Women’s Economic Impact
SAUDI ARABIA IS MAKING SIGNIFICANT PROGRESS IN
GENDER EQUALITY AND IMPROVING QUALITY OF LIFE
Legal reforms have granted women greater rights over travel, employment, and entrepreneurship.
These changes have unlocked new talent, expanded consumer markets, and enhanced the overall quality of life in the Kingdom.
The Global Economy. (2025). Saudi Arabia female labor force participation – data, chart.
40%
of SME owners in Saudi Arabia are women, compared to just 30% in Sweden (Monshaat, 2024).
35.4%
of women participated in the Saudi labor market by Q3 2024, up from 21.2% in 2017—exceeding the Vision 2030 target of 30% and reflecting significant progress in recent years.
37th
Ranked on the UN Human Development Index in 2024, Saudi Arabia shows broad progress in education, income, and quality of life (The Economist, 2025)
The Logistic Edge
SAUDI ARABIA LEVERAGES LOCATION AND INFRASTRUCTURE
TO LEAD IN LOGISTICS
LOGISTICS PERFORMANCE INDEX
Resource: World Bank
Strategically located between Europe, Asia, and Africa, the Kingdom provides direct access to major global trade routes. Its role in the Red Sea corridor is critical, with 12% of global container trade passing through the region. [12]
• Top 20 Shipping Hub Globally: 10.5M TEUs handled in 2023, up 17% YoY.
• Access to 5 Billion People within an eight-hour flight (PwC).
• $100B+ in Logistics Infrastructure: transforming transport with AI, IoT, and blockchain.
• Within 4-hour reach of more than 50 fast-growing economies
[12] Holmager, K. (2025, February 14). Logistics in Saudi Arabia: A vision for the next decade. Freyt World. https://www.freytworld.com/news/saudi-arabia-logistics-vision-2030/
Future Industries
THE OPPORTUNITY FOR GLOBAL COMPANIES | SECTORS IN FOCUS
Saudi Arabia is creating investor-friendly environment across strategic sectors, fueled by government spending, mega-projects, and tax incentives.
AI & Advanced Tech
Saudi Arabia is rapidly emerging as a regional AI and tech leader, backed by $14.9 B in major tech investments with global companies.
Healthcare & Biotech
Saudi Arabia has invested $3.9B in R&D since 2021, signaling a strong long-term commitment to biotech innovation.
Clean Energy & Climate Tech
Saudi Arabia is leading a clean-energy transformation, committing $180B to build a green economy, renewable energy infrastructure and accelerate innovation in ClimateTech.
FoodTech & AgriTech
Saudi Arabia is investing $10B to enhance food security by boosting domestic agricultural output and stabilizing global supply chains.
Construction & Infrastructure
$1.7T in infrastructure across 255 projects, including Red Sea Global and Diriyah Gate, targeting 150M annual visitors and 10% of GDP by 2030.
Gaming & Digital Entertainment
PIF is investing $38B through Savvy Games to make Saudi Arabia a global gaming hub, with foreign partnerships and strong public-private support.
We are here to help you unlock Saudi Arabia’s ecosystem and set you up for successful market entry and growth.