On April 25, 2016, the Saudi Council of Ministers, under King Salman bin Abdulaziz Al Saud, approved Vision 2030, Saudi Arabia's comprehensive development strategy. Since then, Saudi Arabia has updated the plan to reflect economic and social changes and has reported progress on its targets. Major projects aligned with the vision's goals have been launched in tourism, industry, housing, and defence, among other sectors.
Author: Ali Noureddine
Edited by: Erik Prins
This page is part of our article on the Economy of Saudi Arabia
Pillars of the Vision 2030
The Vision 2030 of Saudi Arabia is built upon three pillars:
A Vibrant Society
This pillar includes social and livelihood targets such as average life expectancy, the proportion of the population covered by health services, the percentage of families owning homes, and the number of Saudi heritage sites inscribed on the UNESCO World Heritage list. It aims to provide for a sustainable healthy lifestyle, effective health and social care systems, world-class entertainment, and a spirit of tolerance reflecting Islamic values.
A Thriving Economy
Targets here focus on key economic indicators, including women‘s participation in the labour market, the employment rate of university graduates within six months of graduation, unemployment rates, the share of non-oil exports in GDP, the localisation of military industries, and the value of non-oil GDP.
The goal is to create a supportive environment for businesses of all sizes, invest in education for future jobs, and ensure a prosperous future for all in Saudi Arabia.
An Ambitious Nation
This pillar covers national and governmental indicators, such as government effectiveness, the number of volunteers in non-profit activities, the percentage of large companies with social responsibility programmes, and the proportion of workers in the non-profit sector. The aim is to build an ambitious nation with an efficient, transparent, and accountable government.
Key Vision 2030 Objectives and Outcomes
According to the annual report published on the official website of Vision 2030, Saudi Arabia has made progress on the targets defined in the Vision.
Key Vision 2030 Objectives and Outcomes | |||
---|---|---|---|
Indicator | Baseline at Approval of the Vision (2016) | Achieved (as of 2023) | Target for 2030 |
Average life expectancy | 77.06 | 78.1 | 80 |
Residential areas covered by health services (per cent) | 84.13 % | 96.41 % | 99.5 % |
UNESCO-listed heritage sites | 4 sites | 7 sites | 8 sites |
Families owning a housing unit (per cent) | 47 % | 63.74 % | 70 % |
Localisation of military industries (per cent) | 7.7 % | 10.4 % | 50 % |
Value of non-oil GDP | $405 billion | $503 billion | $1,325 billion |
Share of local content in non-oil sector expenditures | 52 % | 56.8 % | 75 % |
Assets managed by the Public Investment Fund | $192 billion | $720 billion | $2,666 billion |
Unemployment rate | 12.3 % | 7.7 % | 7 % |
Graduates joining the labour market 6 months after graduation | 13.3 % | 41.2 % | 75 % |
Women’s participation in the labour market (per cent) | 22.8 % | 34 % | 40 % |
Share of non-oil exports in GDP | 18 % | 24.1 % | 50 % |
Number of volunteers in non-profit activities (thousands) | 22.9 | 834 | 1000 |
Key Strategic Projects
To achieve Vision 2030, Saudi Arabia has embarked on several strategic projects aimed at transitioning the Saudi economy from dependence on oil. Among the most prominent initiatives:
NEOM
The project was launched in 2017 and in Vision 2030, it is described as a “futuristic region in northwest Saudi Arabia powered by 100 per cent renewable energy. Led by the Public Investment Fund, NEOM is a place that prioritises people and nature, creating a new model for sustainable living, working and prospering.”
The most notable part of the project is “The Line”, a series of interconnected residential and commercial complexes, enhanced by artificial intelligence and powered by sustainable energy, without streets or cars.
Originally, The Line was designed as a straight line stretching over 170 kilometres, with the capacity to accommodate nearly 9 million people. However, in April 2024, Bloomberg quoted Saudi sources saying that Saudi Arabia is scaling down the project to 2.4 kilometres, with a maximum capacity of 300,000 people.
The agency reported that the reduction in scope is due to financial difficulties, with delays in budget approval from the Public Investment Fund (PIF).
Alongside The Line, NEOM features other initiatives, including Oxagon, an industrial zone that follows environmental principles and runs on sustainable energy. There are also tourism projects, such as Trojena, a mountain tourism destination, and Sindalah Island, which aims to attract 2,400 visitors annually by 2028.
Currently, construction is ongoing across the four projects within NEOM, with a workforce of 140,000 employees, which is expected to exceed 200,000 by next year.
Roshn
Launched in 2022, Roshn aims to increase the percentage of Saudis owning residential units to 70 per cent by 2030, conforming to the Vision 2030. It is funded by the PIF, in collaboration with local partners, with a target of building over 400,000 homes in eight years.
The residential complexes in this project cover more than 138 million square metres and include over 2,400 schools and 61 million trees and shrubs.
By the start of the last quarter of 2023, Roshn had generated $2.9 billion in real estate sales since its launch. Notably, the company began selling residential units in late 2022, the same year the project was initiated.
Qiddiya City
Qiddiya City, launched in 2018, is planned to be an integrated city for entertainment, sports, and culture, located 40 minutes from central Riyadh. The city is designed to accommodate 600,000 residents and features 25 master plans for various areas that blend entertainment, sports, and culture within multi-use facilities, alongside residential complexes, and natural spaces.
During the construction phase, the project offers more than 100,000 job opportunities, and once fully operational, it is expected to create 325,000 jobs. The city will cover an area of around 360 square kilometres and will include 400 tourist and entertainment destinations.
The city plans to open its first facilities next year, with further openings continuing until the full completion of all projects in 2030. It is also expected to host matches of the Asian Games and the World Cup in 2034.
King Salman Energy Park (SPARK)
An industrial city spanning 50 square kilometres in the Eastern Province, divided into five zones: an industrial zone, a dry port, a business zone, a training zone, and a residential and commercial zone. The project was launched in 2018, and parts of the city are expected to become operational in 2024. Saudi officials aim to generate 100,000 direct and indirect job opportunities through this project.
Jeddah Central Development Project
Jeddah Central Development aims to revitalise the old city of Jeddah and make it a “world destination”, serving the needs of the city’s residents and visitors. The project was launched in 2021 and is being carried out in three phases.
The first phase, covering 45 per cent of the entire project, is set to be completed by the end of 2027. The second phase, which represents 36 per cent of the construction, is scheduled for completion by the end of 2030. The third and final phase will be finished after that.
Red Sea Projects
Saudi Arabia aims to develop a tourist destination covering 28,000 square kilometres on its western shores along the Red Sea. Once all phases are completed in 2030, the destination will feature 50 resorts, around 8,000 hotel rooms, more than 1,000 residential properties, and 60 tourist islands.
The project is expected to create 70,000 jobs upon its completion. In 2023, Red Sea Global, the project’s developer, opened some of the completed parts of the destination and aims to finish 11 luxury tourist hotels on Shura Island by 2025.