It is no secret that the country of Saudi Arabia has always relied on its oil reserve to sustain itself. However, as of right now, the country is going through a huge transformation that is spearheaded by Vision 2023, an initiative that will make Saudi Arabia less dependent on oil by setting up a more diversified economy. 

As a result of this shift, new and exciting opportunities have opened up in Saudi Arabia’s non oil sectors that call for diversification beyond oil. For investors and businesses, this paves the way towards the exploration of new chapters in the economy that makes up Saudi Arabia.

Vision 2030

Saudi Arabia introduced Vision 2030 way back in 2016. Fundamentally, it is a plan that outlines how the country must diversify its economy by strengthening sectors such as tourism, technology, renewable energy, and manufacturing.

The main goal of Vision 2030 is to create opportunities that are sustainable in the long rong. It also outlines that Saudi Arabia’s resources inclusive of its geographical location, and human capital must be utilised. 

By focusing on innovation, the growth of private sector participation and foreign investments, Saudi Arabia intends to break free from its oil reliant economy.

Non Oil Sectors Destined for Growth in Saudi Arabia

Tourism and Entertainment

Saudi Arabia has plans to establish itself as a hub for tourism. Some ongoing projects to achieve this include:

• NEOM
• Red Sea Development
• Qiddiya Entertainment City

Together, these projects and several others that are in the pipeline will help the country achieve its target of attracting millions of visitors annually. For any business in the hospitality, travel, and cultural events sector, immense potential lies before them.

Saudi Arabia is also home to many historical sites such as  Al Ula and Diriyah. They are currently being restored and efforts are ongoing to promote them as major tourist attractions. 

Technology and Innovation

Vision 2030 also covers investments in tech and innovation and projects such as  King Abdullah Economic City and the Riyadh Tech Hub stand as a testament to this. These special zones will function as innovation hubs, fueling the growth of startups, developing smart cities, and expanding digital infrastructure. 

If you are an entrepreneur in this space, don’t miss out on the opportunities that will arise from these developments. Whether you are a tech entrepreneur, investor, or global technology giant, the technology landscape in Saudi Arabia now has the potential for growth and expansion. Key sectors to look into are artificial intelligence, fintech and cybersecurity.

Renewable Energy

Saudi Arabia’s landscape consists mostly of barren desert. When one also considers the year round sunlight, this makes it the ideal to place to set up renewable energy projects. By 2030, the country aims to generate half of its energy from renewable sources. 

Solar and wind energy projects will be the main driving force behind achieving this target. The Sakaka Solar Power Plant and Dumat Al Jandal Wind Farm have taken centre stage in these efforts as the county’s flagship projects that are in line with the renewable energy ambitions.

For investors looking to contribute to the kingdom’s sustainable future, investments are welcome as they will diversify the economy and stay on par with global trends that call for sustainability and green energy.

Manufacturing

In a bid to reduce its reliance on imports and push towards higher levels of self sufficiency, Saudi Arabia is looking at the development of its manufacturing sector. The National Industrial Development and Logistics Program (NIDLP) is playing a central role in this effort as it has placed a focus on automotive, pharmaceuticals, and petrochemicals industries.

The opportunities in this light have been extended to foreign investors. The kingdom has promised favorable policies, industrial zones, and access to a growing consumer market. By expanding its industrial abilities, Saudi Arabia seeks to establish a position as a regional manufacturing hub.

Healthcare and Biotech

The growing demand for medical services and an aging population has resulted in the growth of Saudi Arabia’s healthcare sector. Under Vision 2030, the country will reinforce its healthcare infrastructure, make strides in medical research and push for innovation in biotechnology.

For pharmaceutical companies, healthcare providers, and researchers, this presents a unique chance to get together and work towards the sector’s evolution. With telemedicine and AI diagnostics also growing, it is expected that the progress in this light will be accelerated even further.

What Else is the Government Doing?

Aside from the many initiatives that the Government of Saudi Arabia has implemented to grow the kingdom’s non oil sectors, several more catalysts have also been put in place:

• Regulatory Reforms that aim to streamline business regulations and offer incentives to foreign investors.
• Public Investment Funds (PIF) that will go a long way in getting mega projects and ventures in diverse sectors off the ground.
• Saudi Aramco IPO which is expected to Generate capital for non oil investments.

The Challenges that Need to be Overcome

While the opportunities are significant, moving away from oil dependency comes with its own set of challenges. 

Cultural Adaptation may be a challenge as the private sector has to be encouraged to participate in a state run economy.

Skill Development must also be looked into in order to equip the workforce with the skills required for emerging industries.

Attracting Foreign Investments may be challenging as trust and transparency needs to be built from the ground up.

As a solution to these hurdles, Saudi Arabia has made investments in sectors such as:

• Education
• Vocational training
• International partnerships

The kingdom’s efforts to create a business friendly environment further enhance its appeal to investors.

In Conclusion,

As Saudi Arabia sets out on this path toward diversification, one thing is clear. The opportunities for its non-oil sectors are certainly immense. Whether it may be tourism, technology, renewable energy or manufacturing there is unmatched potential for any investor who wants to become a part of this transformation. 

With Vision 2030 now at one of the most important stages where the world can actually witness this transformation, the time is now if one would like to explore these opportunities. The government has also reaffirmed its commitment to this change and the future is bright for those waiting to embrace and catalyse this next chapter in the country’s history.

How Can SetHub Help?

Does the idea of investing in Saudi Arabia appeal to you? Whether you are a seasoned investor who wants to cash in on some of the Kingdom’s mega projects, or even if you are an entrepreneur who has an idea for a business venture that will work well in Saudi Arabia, SetHub can help you get your feet on the ground! While we are the UAE’s preferred business setup consultant, we are also very well aware of the nuances of business setup in Saudi Arabia too. Our experts are well versed in this subject and will be able to point you in the right direction. Schedule a call with us now to hear back from a consultant in just an hour, that is all it takes!