The Kingdom prioritises infrastructure, tourism, and technology to reduce oil dependency.

RIYADH, Saudi Arabia — Saudi Arabia is undertaking an ambitious economic transformation, launching over 5,000 projects valued at $5 trillion to diversify its economy beyond oil reliance. This initiative focuses on strategic investments in infrastructure, tourism, and technology, aligning with the Kingdom’s Vision 2030 objectives.

Despite a projected $27 billion deficit in 2025, the Saudi government remains committed to fiscal discipline while maximising economic and social impact. Key projects include the Riyadh Metro, designed to enhance urban mobility, and landmark developments such as Diriyah Gate and New Murabba, aimed at boosting tourism and urban growth. Investments in renewable energy, exemplified by the Sakaka Solar Plant and Dumat Al-Jandal Wind Farm, further underscore the Kingdom’s dedication to sustainable development.

Financing for these initiatives is primarily sourced from the Public Investment Fund (PIF) and various development funds, reducing dependence on public expenditure. In tandem, Saudi Arabia is reforming corporate tax regulations to align with OECD global tax standards, promoting revenue diversification and attracting foreign investments. The government is also advancing strategic privatisation and public-private partnerships to drive economic transformation.

Business leaders have expressed optimism regarding Saudi Arabia’s economic trajectory. According to PwC’s 28th Annual CEO Survey, 90% of executives in the Kingdom anticipate revenue growth in 2025, with 77% confident in local economic expansion, surpassing the global average of 57%. This confidence is bolstered by Vision 2030 initiatives and substantial government investments in infrastructure, tourism, and technology.

Richard Boxshall, Partner and Chief Economist at PwC Middle East, noted, “Saudi Arabia is balancing fiscal prudence with ambitious investment goals to strengthen the private sector, enhance tourism, and advance infrastructure, transforming in line with Vision 2030.”

The Kingdom’s strategic approach aims to achieve sustainable growth amidst global economic challenges, positioning Saudi Arabia as a diversified and resilient economy.

Source: PwC