Saudi Arabia’s Economic Diversification Surpasses Expectations at World Economic Forum
Saudi Arabia’s finance minister, Mohammed Al-Jadaan, addressed the World Economic Forum, highlighting the Kingdom’s economic resilience despite the IMF’s recent GDP growth downgrade. Al-Jadaan emphasized the importance of focusing on non-oil GDP growth as part of the Vision 2030 initiative.
The IMF adjusted its 2025 GDP growth forecast for Saudi Arabia to 3.3%, citing oil production cuts. However, Al-Jadaan argued that non-oil sectors are thriving, with private-sector investment rising from 16-17% to 24% of GDP.
He noted Saudi Arabia’s strategic choice to limit oil production, prioritizing sustainable growth over short-term GDP boosts. The Kingdom aims to diversify its economy, using artificial intelligence and renewable energy as key components.
Al-Jadaan also highlighted Saudi Arabia’s competitive advantages, including its low-cost solar power production and advanced government cybersecurity, managed entirely by Saudi talent.
Looking at the broader MENA region, Al-Jadaan expressed optimism about its future growth, while acknowledging challenges like high youth unemployment and geopolitical issues. He called for regional reforms and technological advancements to harness the region’s potential.