Saudi Arabia is rapidly transforming its economy to reduce reliance on oil, investing heavily in artificial intelligence, tourism, and sports.
While oil remains important, more than half of the kingdom’s economy now operates independently of oil revenues, according to Khalid Al Falih, the Minister for Investment.
“This percentage is growing,” Al Falih told CNBC, noting that 40% of government income now comes from sectors unrelated to oil. This shift supports the goals of Saudi Vision 2030, aimed at diversifying the economy.
The Public Investment Fund (PIF) has played a key role, expanding into technology, video games—owning stakes in Electronic Arts—and sports, acquiring Newcastle United FC. AI is a major focus, with Saudi Arabia planning extensive data centres to develop AI applications.
“AI has emerged [in] the last three, four years, and it’s definitely going to define the future economy of every nation. Those who invest will lead, and those who lag behind, unfortunately, will lose,” Al Falih said.
PwC estimates AI could add over $135 billion to Saudi Arabia’s economy by 2030. Despite a 13.4% drop in Brent crude prices this year, government spending remains stable, with oil revenue now comprising about 53.4% of total revenue—down from nearly 68% in 2019.
Tourism is also growing, contributing 5% to GDP in 2024, up from 3% in 2019. Tourism Minister Ahmed Al-Khateeb aims to increase this to 10% by 2030 and eventually 20%, helping create a more sustainable economy.
Through these efforts, Saudi Arabia is positioning itself as a leader in new industries, seeking to secure long-term growth beyond oil.