Saudi Arabia’s economy is increasingly diversifying beyond oil. Non‑oil sectors now account for a majority of GDP (about 52% as of 2024) and grew ~4.2% last year. Under Vision 2030, the kingdom is pouring money into tourism, entertainment, tech, and infrastructure to “affirm its position” beyond hydrocarbons.
In May 2025, for example, Saudi and US leaders announced approximately $600 billion in future investments (notably in AI and advanced tech), and Riyadh has pledged about $770 billion in U.S. projects. These moves – plus Saudi’s role in brokering global talks – reflect a balancing act: maintaining oil production discipline while building resilience in other industries. An IMF mission notes that retail, hospitality, and construction are already leading non‑oil growth.
Emerging Sector
Tourism & Entertainment
Saudi Arabia aims to host 100 million annual visitors (including pilgrims) by 2030. Under the Quality of Life Program (budget: $34.6B), cinema chains, theme parks, golf courses, and luxury resorts are multiplying fast to attract international and domestic tourists.
The Red Sea Project has opened five resorts, with 50 hotels and 8,000 rooms planned by 2030. Qiddiya, Riyadh’s entertainment mecca, is investing $9.8 billion into sports, theme parks, food and beverage venues, and an F1 racetrack—phase one is expected around 2026–27.
Retail & Hospitality
In Q1 2025, wholesale, retail, restaurants, and hotels rose by 8.4%, while non‑oil GDP grew by 4.9%. High-value hospitality developments, such as golf resorts and modern urban malls, are essential to keep pace with rising domestic consumption and international tourism.
Renewable Energy & Utilities
Saudi Arabia is targeting 130 GW of renewable energy capacity by 2030. It is signing major solar and wind agreements (including with TotalEnergies and EDF) and is advancing regulatory reforms under the National Renewable Energy Program. Data from Q1 2025 shows that non-oil economic activity remains strong, driven in part by renewable energy investments and infrastructure projects.