The Report: Saudi Arabia 2024

Economy

Saudi Arabia, a conventional energy powerhouse, has made significant progress in diversifying its economy under Vision 2030. The digital economy, especially in sectors like education and health care, now contributes 14% of GDP, with artificial intelligence expected to add $135bn to the economy in 2030. While large-scale infrastructure projects progress more slowly, the Kingdom’s positive economic outlook is bolstered by improving global conditions and the potential easing of interest rates. Saudi Arabia aims to attract $100bn in annual foreign direct investment by 2030. With strong financial reserves and expanding digital infrastructure, the Kingdom is well-positioned to meet its Vision 2030 goals, ensuring sustainable economic growth and diversification.

This chapter also contains interviews with Nabil Khojah, Secretary-General, Economic Cities and Special Zones Authority; and Hussein Fares, CEO, Abdulla Fouad Group.

Banking

Saudi Arabia’s banking sector has experienced rapid growth, fuelled by regulatory reforms, foreign investment and digital innovation under Vision 2030. The sector supports key industries like renewable energy, infrastructure and tourism, driving economic diversification. Financial technology advancements, digital-only banks and updated regulations have strengthened the sector’s resilience and competitiveness. As the Kingdom modernises, the banking sector is crucial to its economic success, balancing innovation with financial stability. The shift towards open banking and digitalisation positions Saudi Arabia as a leading financial centre in the GCC and the wider Middle East.

This chapter also contains interviews with Ayman Al-Sayari, Governor, Saudi Central Bank; Nadir Al Koraya, CEO, Riyad Bank; and Bader H AlSalloom, CEO, BSF.

Capital Markets

Saudi Arabia’s capital markets have become a key pillar of Vision 2030, driving diversification and reducing reliance on oil revenue. Thanks to recent reforms, the Kingdom has established itself as a regional financial centre, attracting substantial foreign investment. The Saudi Exchange, known as the Tadawul, is one of the world’s largest capital markets and regularly ranks in the top-10 by market capitalisation, with $2.7trn as of August 2024. Increased IPO activity, strategic mergers and investor interest in financial technology, health care and real estate highlight market growth. Regulatory improvements have enhanced transparency and confidence, strengthening the Tadawul, the Nomu - Parallel Market and debt markets. This development provides a strong foundation for economic growth, foreign investment and the achievement of Vision 2030 objectives.

This chapter also contains interviews with Mohammed El Kuwaiz, Chairman, Capital Market Authority; Mohammed Al Rumaih, CEO, Saudi Exchange; and Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia.

Insurance

In 2023 Saudi Arabia’s insurance sector grew significantly, with gross written premium (GWP) rising 22.7% to $17.5bn, driven by regulatory reforms, economic diversification and increased risk awareness. Health insurance, representing 59% of GWP, led the growth, alongside rising motor insurance due to higher vehicle sales. The Insurance Authority, established in late 2023, is expected to foster consolidation, attract international investment and boost premium. With Vision 2030 fuelling diversification into sectors like tourism, health care and construction, the insurance market is poised for continued growth, forecasted to reach $22.3bn by 2028, with health and motor premium driving the increase.

This chapter also contains an interview with Naji Al Tamimi, CEO, Insurance Authority; and Shabab Al Ghamdi, Secretary-General, Council of Health Insurance.

Energy & Utilities

Saudi Arabia’s energy strategy focuses on maximising returns from hydrocarbons while expanding renewable energy capacity. Acknowledging peak oil demand could occur before 2030, the Kingdom is investing in clean energy solutions. With plans to produce 50% of its energy from renewables by 2030, Saudi Arabia is diversifying its energy mix. The National Renewable Energy Programme and Circular Carbon Economy National Programme support Vision 2030, aiming to reduce oil dependency. The Kingdom is also investing in solar, wind, hydrogen and emerging technologies. Despite leading the Organisation of the Petroleum Exporting Countries, Saudi Arabia is positioning itself as a global leader in both traditional and sustainable energy markets, with substantial investment in the energy transition.

This chapter also contains an interview with Marco Arcelli, CEO, ACWA Power; and Waled Al Ghreri, CEO, National Energy Services Company.

Industry & Mining

Saudi Arabia’s industrial and mining sectors are key to its diversification and privatisation efforts, supported by public investment, regulatory reforms and growing foreign direct investment. The Ministry of Industry and Mineral Resources, established in 2019, oversees these sectors and implements the 2020 Mining Investment Law. With the National Industrial Development and Logistics Programme, the Kingdom aims for 84% growth in non-oil industries and 55% growth in local content manufacturing by 2030. The National Industrial Strategy targets increasing the manufacturing sector’s GDP contribution from $88.3bn in 2020 to $239bn by 2030. Key areas include automotive, aviation, chemicals and renewable energy, driving investment and job creation while diversifying away from oil. 

This chapter also contains interviews with Munir Eldesouki, CEO, King Abdulaziz City for Science and Technology; and Saleh Al Solami, CEO, Industrial Centre.

Security, Aerospace & Defence

Global military expenditure reached a record $2.4trn in 2023, driven by rising tensions worldwide, with Saudi Arabia allocating $75.8bn – a 4.3% increase from 2022 – representing 7.1% of its GDP and ranking fifth globally for overall military spending. The Kingdom’s defence industry is expanding through joint ventures and strategic partnerships, with new facilities like Al Kharj, expected to launch in 2026, and Malham, set to open in 2024. Meanwhile, Saudi Arabian Military Industries aims to localise defence production, targeting 50% by 2030, up from 15% in 2023. Investment is also focused on modernising systems with the deployment of the Hazem combat management system on certain warships. While foreign collaboration remains key, Saudi Arabia’s defence sector continues to grow, largely funded by oil revenue, with ongoing talks with the US on security and nuclear support.

This chapter also contains an interview with Alhamedi Alanezi, CEO and President, Arabsat; and Joseph Rank, CEO for Saudi Arabia and Africa, Lockheed Martin.

ICT & AI

Saudi Arabia’s ICT sector, the largest in the MENA region, is valued at $44bn and contributes 4% to GDP. The sector’s growth is driven by digital transformation across government and industries. As part of Vision 2030, the Kingdom aims for a 19.2% digital economy contribution by 2025. Key initiatives include the Saudi Cloud Strategy and the Cloud Computing Special Economic Zone, supporting sectors like finance, government and education. Saudi Arabia leads the region in digital maturity, with continued efforts to upskill 100,000 graduates through the Fuel programme. The ICT sector shows strong growth potential, with robust infrastructure, regulations and investment driving future expansion.

This chapter also contains an interview with Deemah Al Yahya, Secretary-General, Digital Cooperation Organisation; Yaser Al Onaizan, CEO, National Centre for Artificial Intelligence; Ibrahim Neyaz, CEO, National Technology Development Programme; and Salman Al Badran, CEO, Mobily.

Transport

As part of its Vision 2030 roadmap, Saudi Arabia is rapidly expanding its transport and logistics sector to support economic diversification. Major projects in roads, ports, public transport and air connectivity are receiving significant public funding, with a focus on sustainability and technological innovation. The Ministry of Transport and Logistics Services oversees these initiatives, including the development of Riyadh Air and Saudi Arabia Railways. The National Centre for Privatisation and PPP drives the privatisation programme, enhancing private sector involvement. The transport sector plays a pivotal role in Saudi Arabia’s economic goals, offering abundant investment opportunities in infrastructure, logistics and technology-driven solutions.

This chapter also contains an interview with Ibrahim Al Omar, Director-General, Saudia Group; and Jay New, CEO, King Abdullah Port.

Construction & Real Estate

Saudi Arabia’s construction and real estate sectors are thriving, with a $1.5trn project pipeline driving economic transformation under Vision 2030. The Kingdom leads global construction activity, with developments ranging from luxury resorts to urban projects. Key initiatives include the National Infrastructure Fund, which aims to support up to $53.3bn in investment by 2030. The sector’s growth is further bolstered by regulatory reforms, such as eased foreign ownership rules and tax adjustments. In real estate, demand for residential, commercial and leisure spaces is rising, driven by population growth and efforts to diversify the economy. These sectors offer abundant opportunities for both local and international investors, playing a critical role in the Kingdom’s transformation.

This chapter also contains an interview with Mohammed bin Saleh Albuty, CEO, National Housing Company; and Sultan Alshalash, Chairman, Alaqtar Real Estate Development.

Education & Training

Saudi Arabia’s education system is undergoing significant transformation under Vision 2030, aiming to close the skills gap and support economic diversification. Reforms focus on expanding private education, promoting international schools and increasing enrolment in technical and vocational education. The Ministry of Education and the Technical and Vocational Training Corporation oversee the system, with efforts toward decentralisation to improve school performance. Vision 2030 prioritises aligning education with market needs, enhancing teacher training and expanding vocational opportunities. In 2023 the Kingdom allocated $50bn, or 17% of GDP, to education, making it the largest education budget in the Gulf. These reforms aim to foster innovation and equip students with skills for the evolving job market.

This chapter also contains an interview with Yousef bin Abdullah Al Benyan, Minister of Education; and Einas Suleiman Al Eisa, President, Princess Nourah bint Abdulrahman University.

Health & Life Sciences

Saudi Arabia’s health and life sciences sectors are undergoing a transformation driven by the Health Sector Transformation Programme and the National Biotechnology Strategy, creating significant opportunities for private sector investment. The government plans to invest $66bn in health care infrastructure between 2021 and 2030, with up to 65% from the private sector. This includes expanding hospitals, improving facilities and boosting digitalisation and telemedicine services. The Kingdom’s Vision 2030 emphasises world-class health care, with the pharmaceuticals sector benefitting from innovation and investment. In 2023 Saudi Arabia had 510 hospitals and extensive health care facilities. The shift towards private health care, alongside continued growth, positions Saudi Arabia as an attractive market for health care and medical research and development in the coming years.

This chapter also contains interviews with Fahad bin Abdurrahman Al Jalajel, Minister of Health; Prince Sultan bin Salman Al Saud, Chairman, King Salman Centre for Disability Research; and Fahad Al Shebel, CEO, National Unified Procurement Company.

Tourism & Culture

Saudi Arabia’s tourism industry has transformed rapidly since the Kingdom began issuing tourist visas in 2019. As part of its Vision 2030 plan, the government is investing heavily to make the country a global tourist destination, aiming to boost tourism revenue to $85bn in 2024. The sector is expanding with new hotels, entertainment venues and attractions, and is targeting 150m visitors annually by 2030. With $800bn planned for tourism investment, including $80bn from the private sector, the sector is central to Saudi Arabia’s diversification plans. The Kingdom saw a 56% increase in international arrivals in 2023, marking a strong start. Enhanced air connectivity and streamlined visa options are driving the sector’s rapid growth.

This chapter also contains interviews with Ahmed Al Khateeb, Minister of Tourism; and Jerry Inzerillo, Group CEO, Diriyah Company.

Legal Framework

Saudi Arabia is leading environmental protection through ambitious laws and policies, aligned with Vision 2030. A major initiative is the Green Riyadh project, one of the world’s largest afforestation efforts, aiming to transform Riyadh into a sustainable green city. The Kingdom introduced the Environment Law in 2021, focusing on pollution control, waste management and resource conservation. Saudi Arabia also participates in international treaties like the Paris Agreement and Kyoto Protocol. The Ministry of Environment, Water and Agriculture plays a key role in environmental regulation. The Green Riyadh project aims to plant 7.5m trees, improve air quality and reduce temperatures, supporting both social and environmental sustainability.

This chapter contains a viewpoint from Eyad Reda, Managing Partner, Eyad Reda Law Firm.

Tax

Saudi Arabia’s economic growth has been driven by reforms in taxation and zakat (a payment under Islamic law that is used for charitable or religious purposes) systems, central to Vision 2030. Financial reporting requires annual audited statements filed with authorities, ensuring transparency and compliance. The financial services sector is regulated by agencies like the Saudi Central Bank and the Capital Market Authority, focusing on stability, anti-money laundering and financial technology innovation. Businesses must comply with accounting standards, including International Financial Reporting Standards, and register with the Ministry of Commerce. The Zakat, Tax and Customs Authority manages tax collection, including value-added tax, corporate income tax and zakat. New rules on e-invoicing and transfer pricing align with global standards. These reforms are designed to attract investment while promoting transparency, efficiency and long-term economic growth.

This chapter contains a viewpoint from Mago JB Singh, Founder and Group Managing Partner, Just & Fair Consulting Group: a member of Baker Tilly International.

The Guide

This chapter contains selected listings of some of the country’s top hotels and helpful tips for
business and leisure travellers, and other useful suggestions for travel to Saudi Arabia.

Table of Contents

There are no articles in this chapter. To view the Table of Contents, please click here.