Saudi Arabia’s Bold Economic Transformation: Embracing Technology, AI, and Tourism Beyond Oil
Saudi Arabia Shifts Economic Priorities: From NEOM to Technology and Tourism
Riyadh, October 29, 2025 – Saudi Arabia ran a nearly ten-year plan called Vision 2030 to move away from oil. Now it shows a new focus on tech, AI, and tourism. This change points to a new national aim.
Moving from Big Projects to New Ideas
When Saudi Arabia introduced Vision 2030 in the mid-2010s, it backed huge projects like NEOM. NEOM planned a car-free city, with The Line as its key part. NEOM was to cost about $1.5 trillion; The Line stood near $500 billion. Mine projects linked funds with hope and a fresh urban plan.
Faisal Alibrahim, the Economy Minister, said on CNBC at the Future Investment Initiative (FII) in Riyadh, “We are reordering our focus to help the parts that need it the most; today, it is tech and AI.” He added that new growth will come from work, tech, new ideas, and AI.
Alibrahim pointed out that if plans do not work as well, one must change them. Change starts when the results slow.
Tourism Grows Faster
Tech now wins more space, but tourism grows faster. The kingdom sees strong gains in travel and culture. It reached targets early. Now, the plan is to host 150 million visitors by the end of the decade. This fact shows that other parts of the economy speed up.
Travel, festivals, and sports add to the non-oil economy. Today, they make up 56% of the GDP, Alibrahim said. He called non-oil growth “the main force of the economy” and a way to cut the risks found in oil.
Balancing New Steps
The money view stays good. Saudi Arabia’s Finance Ministry sees the 2026 budget gap at 3.3% of GDP and expects 4.6% economic growth next year, helped by work outside oil. Minister Alibrahim now expects a 5.1% growth rate for 2025. Finance Minister Mohammed Aljadaan said the kingdom’s debt is low. He noted that a 32% public debt-to-GDP ratio stays safe and is backed by strong reserves.
Even when oil prices change and budgets feel pressure, Riyadh keeps spending to meet social and economic goals that match Vision 2030.
NEOM in a New Role
Saudi Arabia still puts funds into NEOM. It now cuts costs and moves with a quicker pace. Oliver Wyman partner Abdulelah Albarrak said, “Big projects change lives, but new tech such as AI needs clear focus.” He urged the kingdom to stay ready for change.
Saudi Arabia: A New Place for Opportunity
Alibrahim said, “People now come to Saudi not to collect cash, but to earn money. We are not just a money source; we are now a base of real job chances. We are simply opening new ways.”
As Saudi Arabia takes on AI and tech while tourism grows, it stands in the heart of new ideas in the region. The kingdom aims to run on hard work and grow for the future.
Stay informed with CNBC for the latest on Saudi Arabia’s new economic path and Vision 2030 plans.
Full money-growing playbook here:
youtube.com/@the_money_grower
