Saudi Arabia—Socioeconomic Transformation and Growth Drivers, 2030

Saudi Arabia—Socioeconomic Transformation and Growth Drivers, 2030

Transformative Mega Trends in Green Energy, Manufacturing, and Digitalization will Support Economic Diversification

This research service provides a snapshot of the Saudi Arabian economy by examining the country’s growth conditions and key policies. Following a steep economic contraction in 2020 on account of the COVID-19 pandemic, Saudi Arabia recorded a rebound of around 8.7% in 2022. Robust growth in non-oil sectors such as manufacturing, transport, government services, and construction accelerated investments into giga projects, with the country’s economic transformation initiative being the main growth driver. Saudi Arabia’s Vision 2030 initiative and policies to reduce dependence on its oil sector indicate significant changes in the country’s economy. International factors, such as rapidly changing geopolitical scenarios and elevated inflation and interest rates, and domestic factors, such as the Saudization policies and growing public finances, will influence the growth trajectory of Saudi Arabia over the medium and long term. A significant part of the global economy, the country is expected to emerge as a diversified investment and employment generator over the next decade, with business reforms and widespread localization building capacity in sectors such as green energy, tourism, real estate, and automotive.

This study provides key insights into the country’s macroeconomic trends and industry prospects in the oil and non-oil sectors, including emerging growth areas. It offers an in-depth analysis of the Mega Trends influencing the country’s socioeconomic landscape and examines the impact of policy initiatives on different sectors. The study concludes by identifying industry-specific growth opportunities emerging from the changes in the country for market players and stakeholders to leverage.

KEY ISSUES ADDRESSED

What are Saudi Arabia’s investment and growth prospects?
How will Saudi Arabia’s growth prospects influence the domestic labor market and external trade sectors?
What are the key growth drivers and growth areas for the Vision 2030 initiative?
Which policy measures will drive major growth opportunities in Saudi Arabia? How can they be leveraged?