Saudi Arabia’s Vision 2030 goals surpassed again in 2023

The annual Saudi Vision 2030 report indicated that the plan, in its eighth year, has illuminated the future of Saudi Arabia, positively impacting the country, its citizens, and expats.

Last year, the midpoint of the Kingdom’s Vision 2030 transformation journey, saw the surpassing of several key performance indicators. It achieved 81 percent of level 3 KPIs and 87 percent of its initiatives were either completed or on track.

Efforts to diversify the economy have succeeded, with advancements in non-oil sectors such as tourism and technology, leading to an increased contribution from non-oil activities, reaching their highest-ever level of 50 percent to real gross domestic product.

The Kingdom’s GDP reached a value of over $788.9 billion in 2023, an increase from the baseline of $708.6 billion.

The private sector's contribution to total GDP reached 45 percent in 2023, up from the baseline of 40.3 percent, achieving the target set for the year.

The Public Investment Fund’s assets under management rose to over $749 billion in 2023, exceeding the annual target of approximately $720 billion.

Foreign investment has experienced an increase, as indicated by its 2.4 percent contribution to GDP. This growth is driven by Saudi Arabia’s improved business environment, resulting from policy enhancements and regulatory reforms that aim to foster a more attractive investment landscape and provide greater support for entrepreneurs.

Social reforms continued to foster a more inclusive Saudi society, promoting equality between women and men in terms of wages and job opportunities. The female workforce participation rate reached a record high of 35.5 percent in 2023, a significant increase from the baseline of 22.8 percent and surpassing Vision 2030’s target of 30 percent.

The Kingdom achieved its lowest unemployment rate since 1999, reaching 7.7 percent in 2023, down from 12.3 percent in 2016, and exceeding the 2023 target of 8 percent.

These economic achievements have transformed the Kingdom’s economy through diversification and substantial improvements, positioning it as a world-class leader in the Middle East and on the global stage.

The percentage of Saudi families housed in their first home reached 63.74 percent, surpassing the 2023 target of 63 percent and showing significant growth from the baseline of 47 percent.

Non-oil exports as a percentage of non-oil GDP reached 24.1 percent, reflecting a substantial increase from the baseline of 18 percent, while the annual target is set at 36 percent.

Saudi Arabia has the Gulf Cooperation Council’s lowest inflation rate, standing at 1.6 percent as of the fourth quarter of 2023, compared to 3.1 percent in the same quarter of 2022, placing it among the lowest inflation rates worldwide.

SME loans as a percentage of total bank loans reached 8.3 percent, demonstrating substantial growth from the baseline of 2 percent.

The number of SMEs has more than doubled, rising from 389,000 in 2016 to 813,000 in 2023.

The mining sector reported record revenues of over $399.9 billion in 2023, with mineral wealth valued at over $2.5 trillion.

The share of local content in the oil and gas sector reached 59.6 percent, significantly surpassing the baseline of 52 percent and exceeding the annual target of 59 percent.

The share of non-oil exports in non-oil GDP reached 59.6 percent, an increase from the baseline of 52 percent, exceeding the annual target of 59 percent.

The total value of cumulative exports from oil and gas-related industries reached over $161.4 billion, a substantial increase from the baseline of over $34.3 billion and exceeding the annual target of just over $132 billion.

The localization rate of military industries reached 10.4 percent, an increase from the baseline of 7.7 percent, surpassing the annual target of 9 percent.

Infrastructure development projects have made significant progress, contributing to the modernization of the Kingdom's 13 regions and cities.

By creating world-class tourism destinations, such as the Red Sea, Saudi Arabia hosted over 100 million tourists, highlighting the success of the Kingdom’s proactive strategy and reform-driven approach to building a vibrant tourism ecosystem.

The increase in entertainment activities in Saudi Arabia has created over 2 million jobs in tourism and culture.

These economic achievements have transformed the Kingdom’s economy through diversification and substantial improvements, positioning it as a world-class leader in the Middle East and on the global stage.

• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz