Saudi Arabia emerges as a forward-looking economic power

At a moment of profound global uncertainty—marked by geopolitical fragmentation and rapid technological disruption —Saudi Arabia’s presence at the World Economic Forum this year stood out not merely as diplomatic participation, but as a statement of intent. 

Led by Foreign Minister Prince Faisal bin Farhan, the Kingdom’s delegation signaled Saudi Arabia’s emergence as an increasingly influential actor shaping international economic dialogue, cooperation, and future-oriented policy solutions.

Held from Jan. 19 to 23 under the theme “A Spirit of Dialogue,” the 56th annual WEF convened global leaders against a backdrop of accelerating change, including breakthroughs in artificial intelligence, biotechnology and clean energy. 

Saudi Arabia’s engagement—through high-level panel discussions and strategic outreach at the Saudi House—reflected a deliberate effort to deepen partnerships across governments, the private sector, civil society, and academia, while reinforcing the foundations of global stability and shared prosperity.

This year’s forum also coincided with a milestone for the Kingdom: the 10th anniversary of Vision 2030. In an interview with Arab News, Minister of Economy and Planning Faisal Alibrahim emphasized that Saudi Arabia’s economy is now more integrated into the global system than at any point in its history. That integration, he noted, is the product of sustained structural reform rather than cyclical gains.

Recent figures from the Ministry of Economy and Planning underscore this shift. Saudi Arabia’s direct and indirect dependence on oil has declined from more than 90 percent in the pre-reform era to 68 percent in 2025. Non-oil activities now account for 56 percent of real GDP, reflecting a genuine broadening of the economic base. In October, the Ministry of Finance raised its 2026 growth forecast from 3.5 percent to 4.6 percent, driven largely by non-oil sector expansion.

The depth of this transformation is evident across the economy. Over the past five years, 74 out of 81 non-oil economic activities recorded annual growth exceeding 5 percent, with 38 achieving growth rates above 10 percent. These figures point to more than diversification in name—they reflect sustained productivity gains and the emergence of new engines of growth.

On the industrial front, Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the Kingdom’s continued strength in natural resources, including oil, gas, petrochemicals, and minerals, while emphasizing a forward-looking industrial strategy. Technological adoption, particularly in artificial intelligence and advanced manufacturing, is being pursued with a clear framework focused on automating defined roles and tasks to enhance efficiency and competitiveness, rather than indiscriminate disruption.

Tourism has emerged as another pillar of economic transformation. Speaking to Al Arabiya Business on the sidelines of WEF 2026, Minister of Tourism Ahmed Al-Khateeb described an unprecedented expansion of the sector. Saudi Arabia welcomed 122 million domestic and international tourists in 2025, up from 116 million the previous year, including 30 million foreign visitors. Tourism spending reached a record SR300 billion ($80 billion), compared to SR281 billion in 2024—underscoring the sector’s growing contribution to economic activity and employment.

The Kingdom also announced the launch of the Quality of Life in Cities Index in Davos, the first initiative of its kind globally. More than 121 cities have already expressed interest in joining the index, with 17 qualifying in its initial phase. Developed by the Quality of Life Program Center in partnership with UN-Habitat, the Global Quality of Life Index introduces a multidimensional, data-driven framework that moves beyond GDP to assess and improve urban well-being.

These messages from the Saudi leadership were reinforced by international institutions. IMF Managing Director Kristalina Georgieva praised the resilience and adaptability of the Kingdom’s private sector amid global uncertainty, noting that diversification efforts are expanding economic activity beyond oil and gas while strengthening services, finance, tourism, and entrepreneurship.

She highlighted the scale and impact of Saudi Arabia’s reforms in supporting businesses of all sizes and empowering young Saudis, and welcomed the Kingdom’s growing role in sharing its reform experience globally—symbolized by the recent opening of an IMF office in Riyadh.

Reflecting this confidence, the IMF raised its 2026 growth forecast for Saudi Arabia to approximately 4.5 percent, citing higher oil output, robust domestic demand, and the continued momentum of structural reforms.

Taken together, Saudi Arabia’s engagement at the World Economic Forum underscored a broader reality: The Kingdom is no longer defined solely by its energy endowment, but increasingly by its reform trajectory, institutional ambition, and capacity to contribute meaningfully to global economic solutions. 

In an era that demands dialogue, adaptability, and long-term vision, Saudi Arabia is positioning itself not just as a participant—but as a partner shaping the future.

• Talat Zaki Hafiz is an economist and financial analyst.

X: @TalatHafiz