Saudi Arabia's Economic Shift from Oil Dependency

Saudi Arabia is undergoing a significant transformation as it diversifies its economy beyond oil, according to an article by Faisal Abu Zaki published in Asharq Al-Awsat. Under the guidance of Saudi Vision 2030, the Kingdom focuses on knowledge, technology, and human capital to redefine wealth and economic sovereignty.

In the first quarter of 2025, the non-oil sector contributed more than 57% to the GDP. Non-oil revenues grew from SAR 164 billion in 2015 to over SAR 502 billion in 2024, showcasing successful diversification efforts by the Saudi government. Investment now targets human capital, AI, digital technologies, and renewable energy, steering toward a knowledge-based economy.

The Public Investment Fund (PIF) exemplifies this shift with strategic investments in future sectors. Labor market improvements include a decrease in unemployment to 3.2% and an increase in women's workforce participation to over 36% in early 2025. The Kingdom's wealth now prominently features the capabilities of its populace.

Saudi economic sovereignty today emphasizes internal decision-making and investment in knowledge production, reducing reliance on oil and volatile global markets, thus setting a revamped model for 21st-century wealth.