Saudi Arabia’s focus on diversifying its economy beyond oil is showing results, according to a recent report from Goldman Sachs Research.
The report says that Goldman Sachs’ analysts “estimate that around $1 trillion (part of the overall estimated [National Investment Strategy (NIS)] investments of $3.3 trillion) could be spent through the end of the decade on preliminary investments in six specific sectors, including clean technology, metals and mining, and transport and logistics,” noting that the country is planning $870 billion worth of “mega projects” by 2030, which includes the NEOM project.
The report discusses the broader focus of the NIS, noting that it primarily focuses on strengthening the role of foreign direct investment (FDI), which is expected to grow to 3.4% of GDP by 2025 and 5.7% by 2030. Saudi Arabia also expects to see gross fixed capital formation, which currently contributes about a quarter of its GDP, rise to 26.4% by 2025 and 30% by 2030.
“Since the launch of Vision 2030 in 2016, Saudi Arabia has made meaningful strides in growing the non-oil economy through various developments and investments across strategic economic sectors,” Goldman Sachs Research analyst Faisal AlAzmeh writes in the team’s report.
