Tuesday, February 20

How Saudi Arabia’s economy is developing

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Saudi Arabia’s economy reduces dependence on oil production

The Kingdom of Saudi Arabia has unveiled a strategic development plan. According to it, 59 new logistics zones will appear in the country by 2030, thanks to which the service market will likely grow. The government hopes to make the Saudi economy more attractive to foreign investors and companies.
According to projections in the master development plan, the kingdom’s logistics sector will reach USD 60 billion by 2024. In addition, the country should be among the top 10 countries in terms of the value of this market by 2030. To achieve these goals, the government is negotiating the entry of the New Development Bank into the association. It currently has eight member states.
The NDB Association was established to support projects in the BRICS and emerging economies. The bank’s authorised capital is USD 100 billion. In addition to the original members, such as China, Brazil, India and South Africa, the UAE, Egypt, and several other countries became members of the NDB in 2021.

Saudi Arabia's economy

A strategy for kingdom development

In 2016, Saudi Arabia decided to reduce the economy’s dependence on fossil fuels. To this end, the authorities adopted the Kingdom’s Vision 2030 development strategy, including transforming various market sectors. Several projects are in the pipeline as part of this plan, and some ideas are grandiose. There are currently 15 major projects underway, each at a different completion stage. The list includes the construction of real estate: skyscrapers, architectural structures of various kinds, as well as the modernisation of infrastructure. The government has already allocated more than USD 1 trillion to these areas. The country is also building autonomous cities – future places where people will live off machines and innovative technologies. The emphasis here is on the environmental friendliness and energy efficiency of every site element.
The changes in the economic landscape of the country’s cities are the first results of the Vision strategy. The real estate market in Saudi Arabia is actively evolving, and new projects are under development. Shortly, the following projects will be available for sale and lease:
– 555,000 residential units;
– 272,000 hotel rooms;
– 4.3 million square metres of retail space;
– over 6 million square metres of office space.
The scale of change is impressive. The country’s territory is one big construction site, with new properties always being built.
In addition to real estate, the Saudi authorities are paying attention to other sectors of the economy, including the logistics market. The country will soon launch new projects to attract foreign investors.

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