RIYADH (Realist English). Saudi Arabia is rapidly reshaping its oil-dependent economy, expanding into sectors such as artificial intelligence, tourism, and sports, as part of its ambitious drive to diversify national income sources under Vision 2030.
According to Investment Minister Khalid Al Falih, more than 50% of Saudi Arabia’s economy is now “completely decoupled” from oil — a major milestone for the world’s largest crude exporter. “This percentage is growing,” Al Falih told CNBC, noting that 40% of government revenue now comes from non-oil sectors. “We’re seeing great results, but we’re not satisfied. We want to accelerate the kingdom’s diversification and growth story.”
AI at the core of future growth
The kingdom is positioning artificial intelligence as one of its new economic pillars. Al Falih said Saudi Arabia will become a “key investor” in AI applications and large language models, building data centers on an unprecedented scale and at globally competitive costs.
“AI will define the future economy of every nation. Those who invest will lead; those who lag behind will lose,” he said.
Saudi Arabia’s energy surplus gives it a strategic advantage in developing AI infrastructure, according to Groq CEO Jonathan Ross, who told CNBC the country could gain over $135 billion by 2030 from AI-driven growth, citing PwC projections.
Economic data points to non-oil expansion
Government figures show that total revenue for the first half of 2025 reached 565.2 billion riyals ($150.7 billion), with oil accounting for 53.4% — down sharply from 68% in 2019. In 2024, overall GDP grew 1.3%, driven by a 4.3% increase in non-oil sectors, while oil activity declined 4.5% year-on-year.
The Public Investment Fund (PIF) — Saudi Arabia’s $900 billion sovereign wealth fund — has been central to this transformation, using oil profits to invest in technology, entertainment, and sports. The PIF has acquired stakes in Electronic Arts, co-founded the SoftBank Vision Fund in 2017, and bought English Premier League club Newcastle United in 2021.
Al Falih said falling oil prices — with Brent crude down 13% this year — would not affect Saudi Arabia’s fiscal agenda. “We’re not scaling back budgets or cutting public spending,” he stressed, adding that the PIF has grown sixfold since its inception and continues to deploy capital in sectors of “strategic national importance.”
Tourism’s rapid rise
Tourism is emerging as another growth engine. Tourism Minister Ahmed Al-Khateeb told CNBC that the sector’s contribution to GDP rose to 5% in 2024, up from 3% in 2019. “We are opening resorts, new airlines, new airports — the numbers are growing fast,” he said, emphasizing a focus on attracting international visitors.
The ministry aims to raise tourism’s share of GDP to 10% by 2030, with a long-term goal of 20%, making it a cornerstone of Saudi Arabia’s plan to build a more sustainable, post-oil economy.
“This 20% will help Saudi Arabia diversify its economy and make it more resilient,” Al-Khateeb said.
