On April 25, 2016, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, launched Saudi Vision 2030. This vision represented an unprecedented strategic shift, a path toward progress and prosperity, and one of the largest national transformation programs in the world, with an ambitious and far-reaching vision.

What is Saudi Vision 2030? and how its impact on the economy and investment in Saudi Arabia?
This is what we will explore in this article.

What is Saudi Vision 2030?

Saudi Vision 2030 is a national strategic plan launched by His Royal Highness Crown Prince Mohammed bin Salman. It aims to diversify the economy, reduce dependence on oil, and build a vibrant society, a thriving economy, and an ambitious nation.

The vision focuses on developing new sectors such as tourism, entertainment, technology, renewable energy, and industry, in addition to enhancing the quality of life, empowering citizens, and transforming the Kingdom into a global investment powerhouse and a logistics hub connecting three continents.

How does Saudi Vision 2030 affect foreign investment in the Kingdom?
One of the most prominent goals of Saudi Vision 2030 is to build a thriving economy capable of competing globally. This has been reflected in the development of a clear roadmap for foreign investors, enabling them to access a Saudi market undergoing radical transformation. The vision’s impact on foreign investment can be observed Through several basic points:

(1) Providing Job Opportunities
The decline in the unemployment rate from 12.3% in 2016 to 7.1% in 2024 reflects the vitality of the Saudi economy and its capacity to absorb labor. This progress gives foreign companies greater confidence in the availability of qualified local talent, thereby reducing the costs of recruiting foreign workers and strengthening the prospects of success for foreign investments through a robust labor market.

(2) A Supportive System for Small and Medium Enterprises
The registration of more than 1.27 million small and medium enterprises by 2023 reflects a thriving entrepreneurial environment. Foreign investors view this as a wealth of opportunities to partner with these companies—whether through acquisitions or collaborations—opening access to new markets and enabling them to benefit from a dynamic innovation ecosystem.

(3) The Power of Investment Funds
The growth of the Public Investment Fund’s (PIF) assets from SAR 720 billion in 2016 to SAR 2.8 trillion in 2023 serves as a strong guarantee and umbrella of stability for foreign investors. A fund of this magnitude inspires additional confidence, enabling it to forge major partnerships and act as an incubator for giga-projects that drive sustainable growth.

Moreover, it has facilitated the establishment of hundreds of startups and created hundreds of thousands of jobs. This momentum enhances the global attractiveness of the Saudi market, as foreign investors recognize an economy backed by vast capital and transformative giga-projects such as NEOM and the Red Sea Project—reducing risk and maximizing opportunities for returns.

(4) A Diversified Economy Beyond Oil
The rise in non-oil GDP growth from 1.82% in 2016 to 4.93% in 2023 demonstrates the success of Saudi Arabia’s economic diversification efforts. This diversification creates opportunities for foreign companies to invest in sectors such as tourism, renewable energy, technology, healthcare, and logistics, while reducing exposure to oil price fluctuations.

(5) Facilities for Small and Medium Enterprises
Raising the share of bank loans allocated to small and medium enterprises to 8.3% in 2023 reflects an active government policy in project financing. Foreign investors can benefit from these facilities either by forming partnerships with local financing companies or by leveraging the advanced financial structure to expand their businesses.

(6) Focus on Non-Oil Sectors
By supporting tourism, entertainment, technology, mining, and renewable energy, the Kingdom has opened new horizons for foreign investors. These sectors provide global companies with greater opportunities to innovate and develop advanced solutions within a supportive regulatory environment.

(7) Amending Ownership Laws for Foreign Investors
The abolition of the local partner requirement and the allowance of 100% foreign ownership in most sectors place the Kingdom on par with more open global markets and strengthen investor confidence in their rights and legal protections.

(8) Developing Infrastructure and Logistics
Massive investments in airports, seaports, and railways, along with major transportation and logistics projects, have positioned Saudi Arabia as a pivotal hub connecting Asia, Europe, and Africa. These developments reduce logistics costs for foreign investors and makes the Kingdom an ideal launching pad for expansion into regional and global markets.

With Saudi Vision 2030, your opportunity to invest in Saudi Arabia is now greater than ever.
This is where Mohammed Al-Khalawi Law Firm comes in — as your trusted legal partner, guiding you every step of the way, from planning to execution. We ensure full compliance with regulations, expedite procedures, and provide comprehensive legal solutions for establishing your company, restructuring your legal entity, or engaging in acquisitions or liquidation.

With our deep expertise and specialized team, we will help you embark on your investment journey in Saudi Arabia with complete confidence.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.