Arab Saudi

Saudi Arabia Economic Profile

Saudi Arabia is a high-income country with the largest economic scale in the Middle East. Backed by the world's largest proven oil reserves and oil production capacity, the oil and gas industry holds overwhelming dominance, accounting for approximately 50% of the entire economy. With a GDP of approximately $1.2 trillion in 2024, it ranks second in the Middle East after the United Arab Emirates. Abundant foreign exchange earnings from oil exports support economic growth and national stability.

Notable recent economic trends include the promotion of "Vision 2030," an ambitious economic diversification strategy. The government is pursuing large-scale investments in renewable energy, tourism, high-tech industries, and financial services to escape oil dependency. The tourism sector in particular is growing rapidly, with significant increases in visitor numbers following major relaxations of visa policy since 2019. Additionally, large-scale development projects such as Saudi Aramco's IPO for domestic industry development and technological innovation, and NEOM city development are underway.

Notable points include the extreme vulnerability of the economy to oil price fluctuations. Additionally, addressing women's labor force participation expansion, youth unemployment issues, and geopolitical risk management are important challenges. Saudi Arabia is a strategically central presence in the Middle East's politics and economics, and the direction of its economic policies has major implications for the entire region and the world's energy markets.