Like other countries in the GCC, Saudi Arabia is undergoing a period of deep economic transformation aimed at easing the pressure on government revenues imposed by a sustained period of low oil prices, while also increasing the contribution of non-oil industries to the national economy. To this end, the government has launched Vision 2030, a long-term policy plan focused on modernising the public sector, developing the country’s human capital and opening up to greater foreign investment.
- Trade & Investment: Broader Offer – One of the more interesting trade trends of recent years is the relative increase of non-oil exports from Saudi Arabia as a percentage of total trading activity. While due in part to falling oil prices, non-oil exports are likely to account for an increasing share of the Kingdom’s trade in the years ahead.
- Energy: Supply Dynamics – As other oil-producing economies have sought to corner the global market in recent years, the Kingdom has continued to produce ever-greater quantities of oil, with the discovery of new fields and improved upstream and downstream facilities.
- Transport: Capacity Expansion – Tens of billions of dollars have already been spent building ports, expanding and upgrading airports, and initiating railway and metro projects, and many more billions have been earmarked for the next few years.
- Industry: Adding Value – Importance is being placed on projects that utilise the Kingdom’s raw material wealth, whether petrochemicals, metals or phosphates, and develop a full chain of upstream and downstream opportunities for local and international firms.
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