Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud pioneered the Saudi Arabia Vision 2030 scheme eight years ago to wean the nation off its reliance on crude oil.
The Saudi leader was keen to position the nation as a multi-faceted entity by branching into various sectors such as sports, gaming, entertainment and tourism.
Read on as we assess how the ambitious plans are progressing and some of the key areas contributing to the economic transformation.
Sports Emerges as an Economic Pillar
Professional sport has emerged as a cornerstone of Saudi Arabia’s diversification plans, with the Kingdom pouring billions of dollars into the sector.
Through its Public Investment Fund (PIF), Saudi Arabia expanded the Saudi Pro League (SPL) to boost its profile and global standing.
The SPL made waves in the European market by signing five-time Ballon d’Or winner Cristiano Ronaldo and other major stars.
The investment is not just about sports. It is part of broader plans to create jobs, stimulate the local economy, and boost tourism.
The SPL generates direct revenue from ticket sales, sponsorships and indirect economic benefits such as increased travel and hotel bookings.
Gaming & eSports are Booming
Saudi Arabia plans to become the foremost player in the gaming and eSports industry under Vision 2030.
PIF acquired stakes in Electronic Arts, Activision Blizzard and Take-Two Interactive as the government pushed to diversify its portfolio into high-growth, tech-driven industries.
The government also created a Saudi eSports Federation, organising high-profile events such as Gamers8 – an exciting multi-week festival.
The Kingdom also hosted and ponied the $62.5 million prize for the inaugural eSports World Cup and will perform the same duties for the maiden eSports Olympics next year.
These moves will create a surge in tourism while positioning the Kingdom as the top destination for eSports enthusiasts, opening new positions for its tech-savvy workforce and promoting innovation.
Heavy Investment Pours into Entertainment & Tourism
One of the crucial tenets of Vision 2030 is to make Saudi Arabia a hub for entertainment and tourism.
Saudi Arabia has invested billions in building several mega projects that will host visitors year-round. These edifices blend natural and cultural experiences for tourists.
The government has also sought partnerships for entertainment initiatives. Muvi Studios recently agreed to produce 10 Saudi films over the next 18 months, and other collaborations are in the pipeline.
Saudi Arabia has established other jaw-dropping projects such as its ambitious Al-Hisn Big Time Studios in Riyadh.
This initiative will attract international festivals and conferences as the land of Two Holy Mosques earmarks itself as a solid entertainment market.
Cultural Shifts & the Rise of New Industries
Saudi Arabia has always been conservative, frowning upon several irreligious entertainment avenues.
However, since the Crown Prince came into power, they have softened their stance to align with economic priorities.
For example, the country’s theatre culture was highly restrictive, but they have loosened those limitations. Saudi Arabia is also now more open to other entertainment avenues such as gambling.
Even though it is still a sensitive issue, Arab players can play games at an online casino in Saudi Arabia. Plans to build brick-and-mortar are in the works.
Other Middle East nations are eager to jump on the gambling bandwagon, and Saudi Arabia will not want to be left behind by its competing neighbours.
Financial Strategies and Global Investments
Saudi Arabia has made large-scale financial moves to attract foreign direct investment.
Saudi Arabian equities have grown in prominence in the investable emerging markets equity universe, making the country more attractive to investors.
They have quickly become the fifth largest country constituent by weight in the FTSE Emerging Index since their inclusion in March 2019.
PIF funded several local enterprises such as the majestic NEOM City project, which remains an everyday conversation piece in the Kingdom, from its $620 billion portfolio.
Saudi Arabia has played a crucial role in supporting these sectors that promise high returns and align with the diversification objective.
Challenges & Sustainability Considerations
The country is making progress in its diversification plans, with non-oil economic growth at an all-time high, but there are still hurdles to be cleared.
Saudi Arabia must ensure that it keeps up this momentum in job creation while reconciling modern economic ambitions with traditional cultural values.
There are concerns that Vision 2030 is not environmentally sustainable, and the government needs to deal with these worries.
Large-scale projects such as NEOM and the Red Sea Project have raised eyebrows for those concerned about its ecological impact, which the government must manage to maintain international credibility.
Another tenet in its Vision 2030 plan is sustainability, and they cannot afford to be defaulters in the global drive towards renewables.
