His Excellency the Minister of Investment, Engineer Khalid Al-Falih, announced that more than 40% of total investments in the Kingdom of Saudi Arabia are currently being channeled into non-oil sectors of the economy, a clear indicator of the tangible progress the Kingdom is making in its journey towards diversifying its sources of income and reducing its dependence on oil. The Minister's remarks came during a dialogue session at the “Public Investment Fund and Private Sector Forum,” where he emphasized that this percentage reflects a profound strategic shift aimed at positioning the Kingdom among the top three countries globally in terms of investment volume.
General context: Vision 2030 as an engine for transformation
These developments are part of Saudi Vision 2030, the ambitious plan launched by Crown Prince Mohammed bin Salman in 2016 to restructure the Saudi economy and society. Historically, the Kingdom’s economy has relied almost entirely on oil revenues, making it vulnerable to fluctuations in global energy prices. The Vision aims to build a sustainable and diversified economy by empowering the private sector and developing new sectors such as tourism, entertainment, technology, renewable energy, and advanced industries. Al-Falih noted that restructuring the Public Investment Fund (PIF) was a pivotal step in this strategy, positioning the fund as the primary driver of this massive economic transformation.
The importance of the event and its expected impact
Domestically, directing this volume of investment to non-oil sectors provides a significant boost to the private sector, which now accounts for 65% of these investments. This not only contributes to creating millions of jobs for citizens but also enhances the resilience of the national economy in the face of global challenges. Al-Falih explained that the National Investment Strategy, which aims to inject 12 trillion riyals by 2030, has already achieved more than half of its target, reaching approximately 6.3 trillion riyals in just 3.5 years, demonstrating the accelerated pace of implementation.
Regionally and internationally, this transformation reinforces Saudi Arabia’s position as an attractive global investment hub. By hosting major events such as Expo 2030 and the 2034 FIFA World Cup, and implementing mega-projects like King Salman International Airport and the expansion of King Khalid International Airport, the Kingdom is demonstrating its ability to achieve its ambitious goals. The Minister noted that prioritizing is a natural part of managing a portfolio of projects of this scale, as some projects may be accelerated while others are slowed down to ensure the best possible outcomes. Saudi Arabia’s success in diversifying its economy serves as an inspiring model for other countries in the region and opens new horizons for international partnerships beyond the traditional energy sector.
