Saudi Vision 2030: Empowering the Kingdom Through Innovation and Sustainability

Vision 2030 has been a major force in reshaping Saudi Arabia since its launch in 2016, driving economic growth, industry transformation, and new opportunities.

The results of Vision 2030’s initiatives are unfolding through the rapid rise of entertainment hubs, ambitious giga-projects, and iconic destinations like the Red Sea attraction AMAALA, attracting tourists worldwide.

Sports are also seeing tremendous growth, with globally recognised events like the FIFA World Cup 2034 to be held in KSA, aligning perfectly with Vision 2030’s goal to establish Saudi Arabia as a premier destination for international competitions and entertainment.

With a focus on sustainability and innovation, project Vision 20230 is redefining the nation’s economic landscape. Here’s a look at its key goals, guiding pillars, progress, and areas that likely need redirection. 

What is Saudi Vision 2030?

Vision 2030 is a government initiative launched in 2016 aimed at leveraging the country’s unique strengths, its significant role in the Islamic world, strong investment capabilities, and strategic geographical positioning. It is led under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, and Prime Minister of Saudi Arabia. 

Saudi Vision 2030 is a blueprint that is diversifying the Kingdom’s economy, empowering citizens,  nourishing a thriving business environment for both local and international investors, and setting the right base to elevate Saudi Arabia as a global leader in innovation and sustainability. 

The project is planned to unfold in stages, each lasting up to five years and building on the last. 

• First Phase: Focuses on setting the foundation and executing structural and comprehensive reforms in the public sector, the economy, and society. 

• Second Phase: Upgraded efforts to offer an enhanced focus on necessary strategies and directing further investments in key sectors and creative projects. The implementation of this phase has yielded noticeable results across the Kingdom. 

• Third Phase: Focus on maintaining the project’s progressive impact and leveraging new growth opportunities.

As the project continues to take effect, the country remains committed to its key objectives through Vision Realization Programs (VRPs). 

Saudi Vision 2030 is transforming the socio-economic environment of the country, by initiating comprehensive national strategies and major projects. They are proving to,

• Improve  the quality of life for citizens and residents

• Opened more opportunities for growth and investment

• Encourages greater global integration

• Enhance governmental efficiency.

Vision 2030 is shaping a future where tradition, innovation, and sustainability coexist, creating an environment where citizens thrive and creating a bold new path for fueling prosperity in the Kingdom. 

Vision 2030 is built on three core pillars:A Vibrant Society, A Thriving Economy, and An Ambitious Nation, each designed to drive sustainable growth and innovative transformation in Saudi Arabia.

Three Pillars of Saudi Vision 2030 

Vision 2030 is formed on three pillars, each with a theme emphasising the specific goals and initiatives that should work together in reshaping the country’s economic, social, and political pathways. 

A Vibrant Society

Through Vision 2030, the country hopes to improve the quality of life for its citizens and enhance the sense of national identity through social and cultural development. 

The theme of Vibrant Society says to achieve true happiness and fulfillment, it is important to prioritise physical, psychological, and social well-being. 

The topline initiatives and targets under the “A Vibrant Society” theme include:

• Raise life expectancy from 74 to 80 years

• Rank 10th in the Social Capital Index

• Build the world’s largest Islamic museum

• Place three Saudi cities among the top 100 globally

• Boost weekly exercise participation to 40% (from 13%)

• Expand annual Umrah visitors from 8M to 30M

• Increase household spending on culture and entertainment to 6%

• Increase the number of Saudi heritage sites registered with UNESCO (United Nations Educational, Scientific and Cultural Organization) 

Through these initiatives, the country hopes to create a vibrant society where everyone enjoys a healthy and high quality of life and an attractive living environment. 

A Thriving Economy

The second key objective of Saudi Vision 2030 is to foster economic growth and job creation by leveraging the country’s strategic location, attracting top talent, and increasing global investment.

The pillar “A Thriving Economy” also focuses on empowering the youth, building a culture of determination, offering diverse job opportunities, and bringing in global expertise. 

To support the targets behind the theme, the Saudi government is angling for huge amounts of foreign direct investment in sectors with little connection to petrochemicals. This strategic move will be partly achieved through the privatisation of state-owned entities and by creating several tax-free special economic zones. 

Sustainability is another driving force behind the pillar of creating a thriving economy under Vision 2030. Saudi Arabia is seeking to grow the already formidable assets of its Public Investment Fund (PIF) and use them to invest in renewable energy, mining, and R&D. 

The targets focused under “A Thriving Economy” pillar for Saudi Vision 2030 include: 

• Increase KSA’s share of non-oil exports 

• Raise private sector contribution to 65% of GDP 

• Increase FDI contribution to GDP to 5.7%

• Rank among the top ten in the Global Competitive Index

• Increase PIF’s assets from $159bn to $1.86trn+

• Enter the top 15 largest world economies

• Increase localisation of the oil and gas sector to 75% 

• 30% of women participating in the workforce 

• Increase small-to-medium-enterprise contribution to GDP from 20% to 35%

• Lower unemployment to 7%

An Ambitious Nation

The Kingdom aims for Saudi Vision 2030 to modernise and adapt its governance. The planned reforms under the pillar “An Ambitious Nation” point towards a more flexible, productive, and less opaque country. This dovetails with an effort to make all parts of government more transparent and accountable in managing its finances efficiently and effectively. 

Mohammed bin Salman, the Crown Prince of Saudi Arabia, is calling upon businesses to focus more on their social responsibilities while urging the general Saudi public to take up volunteering. It encourages all of society – citizens, businesses, and non-profit organisations to take the lead in identifying and pursuing opportunities that will drive progress toward a collective future, fostering significant transformations within civil society.

The key milestones the pillar “An Ambitious Nation” strives to achieve by 2030 include: 

• 1M citizens volunteering annually

• Increase the nonprofit sector’s contribution to 5% of GDP 

• Increase household savings from 6% to10% of total income

• Enter the top five places of the E-Government Survey Index ranking

• Reach 20th place in the Government Effectiveness Index from 80th

Vision 2030 is one of the most ambitious and transformative initiatives in the Middle East, taken towards integrating sustainability and innovation to drive long-term economic and environmental progress.

Building a Legacy of Sustainability and Innovation through Vision 2030 

Saudi Arabia is on a bold path to redefine its future, placing sustainability and innovation at the core of Vision 2030. The strategy aims to reduce reliance on oil, promote economic diversification, and create a greener, more resilient economy. These efforts also serve as a model for global climate action, emphasising innovation and responsible growth.

Here are some key initiatives driving sustainability and innovation under Vision 2030.

• Net-Zero by 2060

Saudi has committed to achieving net-zero emissions by 2060 through the integration of environmental, social, and governance (ESG) principles into its economic and social policies. It is a significant initiative that reflects the country’s proactiveness in addressing climate change, positioning it as a leader in sustainability.

• Renewable Energy and Water Conservation

Under Vision 2030, the Kingdom has been investing heavily in renewable energy sources, such as solar and wind, helping them strengthen their focus to diversify their energy mix and reduce carbon emissions. They have also prioritised water conservation, with strategies focused on desalination, wastewater recycling, and sustainable agricultural practices to confront the rising awareness of water scarcity.

• Sustainable Urban Development

Major urban projects aiming to accomplish the goals of Saudi Vision 2030, including NEOM, are designed with sustainability at their core. These popular ongoing developments incorporate clean energy, smart infrastructure, and digital innovation to create eco-friendly cities with green spaces, efficient public transport, and sustainable architecture.

• Embracing ESG (Environmental, Social, and Governance)

The Saudi Green Initiative and regulatory reforms are driving ESG adoption across industries. It helps the country to encourage its focus on environmental responsibility, raise awareness among businesses, and align corporate and governmental policies with sustainable practices.

• Corporate Governance and Investments

The Saudi Stock Exchange (Tadawul) is promoting ESG reporting and responsible investment. By setting strict sustainability standards for businesses and through the initiatives proposed under Vision 2030, Saudi is nourishing a culture of transparency, corporate social responsibility, and sustainable growth.

• Fintech and Financial Sustainability

Digital transformation plays a role in establishing sustainability standards under Vision 2030, especially with Fintech solutions like Fils integrating climate-positive initiatives into financial transactions. By leveraging advanced technology, Saudi Arabia is ensuring that its financial sector aligns with its sustainability goals.

• Carbon Credits and Climate Action

The Regional Voluntary Carbon Market Company (RVCMC), backed by the Public Investment Fund (PIF), is establishing a regional carbon market. This initiative allows businesses to offset emissions, further strengthening Saudi Arabia as a low-carbon economy and positioning it as a global leader in carbon trading. 

Under Vision 2030, The Kingdom of Saudi Arabia has made strategic investments in clean energy, green urban planning, fintech innovation, and ESG adoption. This model for sustainable development and encouraging innovation has not only transformed the country but also has let them set new standards for smart economies worldwide. 

Key Projects Under Saudi Vision 2030 

Saudi Vision 2030 projects include a combination of completed initiatives, ongoing developments, and future plans that are still in progress. They include: 

Mega Developments and Tourism

• NEOM (The Line, Oxagon, Trojena, Sindalah)

• Qiddiya

• Diriyah Gate

• AlUla

• AMAALA

• The Red Sea

• Soudah Development

• Jeddah Central

Urban Development and Infrastructure

• Green Riyadh

• King Salman Park

• Riyadh Art

• Riyadh Sports Boulevard

• ROSHN (Real Estate Development)

Energy and Sustainability

• Middle East Green Initiative

• Saudi Green Initiative

• Sakaka Solar Power Plant

• Solar PV Cell & Module Manufacturing Plant

• Water Desalination Project Using Solar Power

• Absorption Base Desalination Plant

Industrial and Technology Projects

• King Salman Energy Park (SPARK)

• Composite Aerostructure Factory

• Low Power Research Reactor

Cultural and Social Initiatives

• Saudi Genome Programme

• Mohammed bin Salman Project for Developing Historical Mosques in the country

• Saudi Made (Local Manufacturing & Branding Initiative)

Vision 2030 has made significant strides in sustainability, innovation, and economic growth, and as the world anticipates its transformation, it continues to shape Saudi Arabia’s future.

Performance and Progress Till 2025 

The results and performance aimed at achieving the goals of Saudi Vision 2030 paint a mixed picture, with some targets achieved beyond expectations while others are still advancing toward their desired outcomes.

Notable achievements in the project that have demonstrated significant success include:

• Non-oil revenues doubled, reaching 50% of real GDP in 2023

• Homeownership rose from 47% to 67%

• Umrah pilgrims hit 13.56M in 2023, exceeding the 10M target

• Private sector contribution to GDP reached 45%

• PiF exceeded its 2.7T SAR asset target

• Female labour force participation surpassed expectations at 35%

Areas the project could focus on and redirect pathways for better performance include: 

• Non-oil exports at 15% of non-oil GDP, is far from the 50% target

• Q4 2023 FDI inflow at SAR 13B, is well below the SAR 375B 2030 goal

• Defence sector remains heavily reliant on external suppliers

• Unemployment still 1% above target

The NEOM project will also most likely not live up to the high expectations it first proposed, as the projected cost starts to strain budgets.

Another project under Vision 2030 that has fallen short of expectations is the Centerpiece “The Line,” a linear glass city. It was initially set to accommodate a population of nine million stretched over 105 miles of desert and has now reportedly scaled down to 300,000 people over a mile and a half. 

Regardless of how the world views the objectives behind Vision 2030 or the challenges it may face, Saudi Arabia will undoubtedly look very different in 2030 compared to 2016.

The ambitious plans set forth are already sparking significant changes across various sectors, from economic diversification to social reform and technological innovation. 

While opinions on the pace and feasibility of these goals may vary, Vision 2030 is clearly guiding the Kingdom toward a more dynamic and forward-thinking future.