Saudi Arabia: The transformation continues

Every September 23 the skies above Saudi Arabia light up with dazzling displays of fireworks to celebrate Saudi National Day. Marking the anniversary of the country’s naming in 1932, it’s an occasion when the population reflects on what has been achieved over the decades. This year, the commemoration may be a particularly proud affair, as the country looks back on the resilience it demonstrated during the pandemic and the huge transformation it has experienced since 2016.

That year, Crown Prince, Deputy Prime Minister and Minister of Defense Mohammed bin Salman bin Abdulaziz Al Saud launched the ambitious Vision 2030 development plan with the aim of, among other things, diversifying the economy away from oil, creating a more attractive environment for local and international investors, opening up new innovative sectors and promoting a vibrant Saudi society. Five years into its implementation and, despite the pandemic, the country is ahead of the vision’s targets. Between 2015 and the end of 2020, non-oil revenues grew 222 percent to reach $98.4 billion, investment inflows increased by 331 percent to $4.7 billion, foreign investor holdings on the Tadawul stock exchange were up 196 percent at $55.5 billion and Saudi home ownership rose from 47 percent to 60 percent.

Like most nations, Saudi Arabia experienced economic contraction in 2020, but the efforts made over the last five years laid the foundation for a rapid return to form. After witnessing a 10.1 percent expansion of its non-oil sectors in the second quarter of 2021, independent