A report from Vision 2030 released today announced a historic leap in the Saudi economy's gross domestic product (GDP), surpassing the 4 trillion riyals mark to reach nearly 4.9 trillion riyals by the end of 2025. This achievement reflects the success of economic policies aimed at diversifying the Saudi economy and enhancing the growth of non-oil sectors.
The figures indicate that the contribution of the private sector to GDP has risen to 51% by the end of 2025, exceeding the set targets, compared to approximately 44% at the launch of Vision 2030. This increase highlights the growing role of the private sector as a key driver of economic growth in the Kingdom.
Event Details
The Public Investment Fund has witnessed exceptional growth, with total assets under management increasing by nearly 5 times since the launch of the vision, rising from 720 billion riyals to approximately 3.41 trillion riyals by the end of 2025. The fund continues to strengthen its position as one of the largest sovereign wealth funds globally.
The small and medium enterprises (SMEs) sector has also played a pivotal role in supporting the economy, with the number of SMEs increasing to over 1.7 million enterprises, growing nearly fourfold since 2016. This sector has contributed to the creation of extensive job opportunities, with the number of employees rising to 8.8 million workers by the end of 2025, compared to 4.7 million workers in 2020, surpassing planned targets.
Background & Context
Vision 2030 is a strategic plan aimed at reducing dependence on oil and diversifying income sources in the Kingdom. Launched in 2016, it includes a series of economic and social reforms designed to enhance sustainable growth.
Since the launch of the vision, significant progress has been made across various sectors, including industry and services, contributing to an improved business environment and increasing the Kingdom's attractiveness for foreign investments.
Impact & Consequences
These indicators point to a profound shift in the structure of the Saudi economy, where growth is no longer solely reliant on oil but is now driven by sovereign investments and an expanding business base. This transformation enhances the Kingdom's position in the global economy and increases its competitiveness.
Moreover, the rise in localization in military industries to about 25%, compared to around 7.7% in 2021, reflects the development of defense industrial capabilities and strengthens the Kingdom's strategic independence.
Regional Significance
These economic achievements mark a milestone not only for Saudi Arabia but for the entire Arab region. They reflect the ability of Arab countries to achieve sustainable development and diversify their economies away from oil dependence.
Saudi Arabia's success in achieving the goals of Vision 2030 may encourage other countries in the region to adopt similar policies to enhance economic growth and achieve stability.