Saudi Arabia Advances Economic Diversification Efforts

Saudi Arabia is intensifying its commitment to economic diversification under the Vision 2030 initiative, aiming to reduce reliance on oil revenues and promote growth in the non-oil sector. Finance Minister Mohammed Al Jadaan emphasized the importance of foreign direct investment (FDI) for achieving a target of $100 billion by 2030, despite challenges in meeting this goal. The $925 billion Public Investment Fund (PIF) is shifting focus towards domestic projects, reducing overseas investments by a third. Additionally, energy localization efforts are gaining traction, with a goal of achieving 75% localization in the energy sector by 2030, as highlighted during the Energy Localization Forum. Recent reports indicate that the non-oil economy grew by 3.8% in the first half of 2024, driven by sectors such as trade and hospitality. Meanwhile, Saudi Arabia is making significant strides in expanding its renewable energy capacity, targeting 130GW by 2030.