Riyadh: Saudi Arabia is fast reshaping its economy by investing heavily in artificial intelligence (AI), tourism, and sports, as it moves away from decades of oil dependence.
Investment Minister Khalid Al-Falih said that more than half of the Saudi economy, 50.6%, is now independent of oil, with about 40% of government revenue coming from non-oil sources.
“Those who invest in AI will lead, and those who lag will lose,” Al-Falih said, outlining the kingdom’s plan to become a global leader in AI applications and data-center infrastructure. Saudi Arabia aims to build data hubs “at a scale and cost unmatched anywhere else,” he added.
According to PwC, AI could add $135 billion to the kingdom’s economy by 2030.
Despite weaker oil prices in 2025, Brent crude is down about 13% this year, Saudi Arabia has maintained its public spending levels, supported by strong performance in non-oil sectors.
The country’s Public Investment Fund (PIF) has expanded aggressively, taking stakes in technology firms, gaming companies, and sports organizations, including Electronic Arts and Newcastle United, as part of its diversification push.
Tourism is also booming. Tourism Minister Ahmed Al-Khateeb said the sector’s share of GDP rose to 5% in 2024, up from 3% in 2019, with a goal of reaching 10% by 2030 and eventually 20%.
“We’re opening new resorts, airlines, and airports. The world is discovering Saudi Arabia’s culture,” Al-Khateeb said.
With oil revenue now making up just over half of total government income, the kingdom’s diversification under Vision 2030 is gaining traction, positioning Saudi Arabia as a regional hub for technology, tourism, and investment.
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