Saudi Arabia’s recent business news reflects a strong and consistent push towards economic diversification under its ambitious Vision 2030 plan. The focus is increasingly on the non-oil sector, which continues to demonstrate robust growth and is becoming a major contributor to the national GDP.
Key Economic Highlights
Recent data shows the Saudi economy is making significant strides in its diversification efforts. The non-oil sector has seen remarkable growth, with its contribution to the country’s real GDP reaching a record 51% in 2024. This is a crucial milestone, as it indicates a decreasing reliance on oil revenues. The industrial and logistics sectors alone added over $263 billion to the non-oil GDP in 2024, accounting for 39% of the non-oil economy.

A major driver of this growth is a surge in new businesses. In 2024, the Kingdom granted over 1,300 new industrial licenses, attracting more than $13 billion in new investments and creating tens of thousands of jobs. The Saudi market’s strong domestic demand and high purchasing power are key factors in attracting these investments.
Strategic Initiatives and Major Projects
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is at the forefront of this economic transformation. The PIF’s assets under management grew by 19% to reach $913 billion by the end of 2024. The fund is actively deploying capital in priority sectors, with cumulative investments since 2021 exceeding $171 billion. It’s also making a move into the global market, with a focus on forming strategic partnerships and investing in cutting-edge technologies.

In terms of specific projects and policies, recent developments include:
Mega-Projects: The PIF has launched a new company to develop and manage Expo 2030 in Riyadh, a significant project aimed at boosting the country’s global standing.
Real Estate and Tourism: Jeddah is seeing the launch of 29 new real estate projects to boost investment. On a broader scale, Saudi Arabia’s tourism sector is booming, achieving the highest revenue growth among G20 nations, with international tourism revenue up 148% in 2024 compared to 2019.

Technology and Talent: The Kingdom has partnered with U.S. and PIF-backed companies to implement new OpenAI models, positioning itself as a leader in artificial intelligence in the region. To attract foreign talent, Saudi Arabia also introduced a new skills-based work permit system.
Legal Reforms: New regulations are being introduced to streamline business operations, including a new law that expands property ownership rights for foreigners. Additionally, amendments to labor laws are being implemented to provide clearer definitions for both businesses and inspectors.
Sport add this text on page
The sports sector in Saudi Arabia is a cornerstone of its Vision 2030 economic diversification plan, holding immense importance both as a platform for national development and as a burgeoning business and investment hub. The government views sports as a powerful tool to enhance the quality of life for its citizens while simultaneously creating a dynamic, self-sustaining industry.
Sports as a Social and National Goal
At its core, the sports sector is central to building a “vibrant society,” one of the key pillars of Vision 2030. The Ministry of Sports and the Saudi Sports for All Federation (SFA) are leading initiatives to increase physical activity rates among the population. Goals include raising physical activity participation to 40% by 2030. This is being achieved through the development of local sports facilities, the promotion of grassroots programs, and hosting community events like running and cycling races. By encouraging an active lifestyle, the Kingdom aims to improve public health and well-being.

Furthermore, hosting major international events is a source of national pride and a way to elevate Saudi Arabia’s global image. The country has successfully secured bids for monumental events, including the 2034 FIFA World Cup, and has become a regular host for high-profile tournaments in boxing, Formula 1, golf (LIV Golf), and tennis.
Sports as a Major Business Industry
The business aspect of sports in Saudi Arabia is where the most significant financial investments are concentrated. The sector is transitioning from being state-subsidized to a commercially viable industry, with the market value projected to grow significantly.
Massive Investment: Saudi Arabia has invested billions in sports since 2021, primarily through the Public Investment Fund (PIF), its sovereign wealth fund. These investments are aimed at creating new revenue streams, attracting foreign direct investment, and generating jobs. The sports sector is expected to contribute a significant percentage to the Kingdom’s non-oil GDP.

Privatization and Commercialization: A key strategy is the privatization of sports clubs. The PIF has taken majority stakes in major football clubs like Al-Nassr, Al-Hilal, Al-Ittihad, and Al-Ahli. This has led to the acquisition of global superstars like Cristiano Ronaldo, Karim Benzema, and Neymar, which in turn has dramatically increased the visibility and commercial value of the Saudi Pro League (SPL). The S

L’s business model is centered on attracting world-class talent to raise the league’s global profile, attracting lucrative media rights deals, sponsorships, and merchandise sales.

Economic Ripple Effect: The economic impact of sports extends far beyond the stadiums. Major events and projects create a ripple effect, boosting other sectors such as tourism, hospitality, retail, and construction. For example, the development of 15 new stadiums for the 2034 World Cup is driving massive construction activity. The rise of esports is also a key part of this strategy, with the PIF-backed Savvy Games Group investing billions to make Saudi Arabia a global hub for gaming and esports, creating thousands of jobs and fostering a new tech-driven industry.