Vision 2030 propels Saudi Arabia to forefront of global investment, says Economy Minister
RIYADH: Saudi Arabia has established itself as a global growth platform for investments, driven by the Kingdom’s Vision 2030 program, which has propelled the expansion of sectors like tourism, a senior minister said.
Speaking at the Global Investment Conference in Riyadh, Saudi Minister of Economy and Planning Faisal Al-Ibrahim highlighted that evolving sectors like tourism play a crucial role in maintaining the dynamics of the Kingdom’s non-oil economy.
The National Tourism Strategy, which initially targeted 100 million visitors per year by 2030, exceeded its target in 2023, prompting the Kingdom to revise its target to 150 million visitors by the end of the decade.
Tourism’s contribution to gross domestic product is expected to increase from 6 to 10 percent, highlighting its impact on Saudi Arabia’s economic trajectory.
Al-Ibrahim attributed this progress to deliberate diversification efforts, stressing that Vision 2030 has enabled the Kingdom to unlock its inherent potential and foster collaborations with private and global partners.
“Saudi Arabia is today a platform for global growth. Perhaps today the Kingdom is “the” platform for global growth. And we’ve had the chance to prove the power of diversification over the past few years. Tourism is growing rapidly and helps Saudi Arabia’s non-oil growth remain stable and high over the past 15 quarters,” Al-Ibrahim said.
He added: “Saudi Vision 2030 produces results and returns. We unleash immense inherent potential wherever we go.
Al-Ibrahim also mentioned that they had “made a strong and deliberate start with Vision 2030”. He explained that since then, much of what has happened has been based on political will, cascading with various constituents, and collaboration with the private sector. This, he noted, “led to the momentum we see today.”
Al-Ibrahim also highlighted that non-oil activities now constitute 52 percent of Saudi Arabia’s real gross domestic product, with the Kingdom’s fixed capital formation climbing to 25 percent of GDP, up from less than 12 percent before the Vision 2030.
According to the minister, Saudi Arabia connects citizens and countries to new markets by providing a favorable environment for investments.
“Saudi Arabia is becoming a more competitive and fundamental platform for people looking to access new markets. The Kingdom does not play a role as an anchor of stability, but rather a role as a promoter and driver of stability,” Al-Ibrahim said.
On global cooperation, the minister noted that Saudi Arabia has been invited to join BRICS, but the decision is currently under evaluation, with the final outcome expected to be revealed in due course.
He added that Saudi Arabia is unique in opening up new sectors, such as entertainment, while strengthening existing industries like energy, defense and healthcare.
“We have many sectors that existed before, but a lot of knowledge has been accumulated in these sectors. We are moving from traditional hydrocarbon-based energy to renewable energy, carbon removal and green hydrogen, which requires a lot of innovation and collaboration,” said Al-Ibrahim.
Earlier this month, a report from the Kingdom’s Ministry of Investment highlighted that the entertainment sector is expected to create 450,000 jobs and contribute 4.2% of GDP by 2030.
The report also reveals that the entertainment sector is driving tourism growth, with 6.2 million inbound visitors in 2023, an increase of 153.3% from the previous year.
The efforts of the IDB
During the same roundtable, Muhammad Sulaiman Al-Jasser, President of the Islamic Development Bank Group, highlighted the institution’s efforts to strengthen the growth of its member countries.
Al-Jasser stressed the importance of basic infrastructure development as a foundation for economic progress, particularly among IDB member countries.
“At the IDB, we are very concerned about the evolution of our member countries in terms of economic growth and development. We also know that the most fundamental element of any economic development begins with basic infrastructure,” Al-Jasser said.
He added: “We listen very carefully to our members. We don’t tell them what to do. But we listen to them and agree on strategic activities and projects.
Al-Jasser stressed the need for strong policy frameworks to attract investors.
“We need to communicate to our members that policy predictability and robust regulatory frameworks are very important. Because investors have so many options, they will choose. They will make a selection,” he added.
Since its establishment in 1975, the IDB has financed projects worth more than $190 billion across all member countries while maintaining an “AAA” credit rating.
In July, Moody’s affirmed the bank’s AAA rating with a stable outlook, citing its strong risk profile, low leverage and strong liquid assets relative to debt.
Regional outlook
Speaking at the same roundtable, Samir Abdelhafidh, Tunisia’s Minister of Economy and Planning, said the country views trade and foreign direct investment as key potential drivers of economic growth and development.
Abdelhafidh added that Saudi Arabia and Tunisia could potentially collaborate in several sectors, including renewable energy, transport and logistics, minerals, tourism and the information technology sector.
For his part, Hassan El-Khatib, Egyptian Minister of Investment and Foreign Trade, said that the country is implementing the right policies to attract foreign direct investments, which will play a crucial role in catalyzing its economic growth .
El-Khatib also invited private companies to invest in Egypt, saying the country offers clear and predictable policies, which could boost investor confidence.