30% economic growth in Saudi Arabia since 2016 attributed to Vision 2030

 

Saudi Vision 2030 contributed 30% economic growth in Saudi Arabia since 2016  

Saudi Arabia’s 2026 budget data shows that Vision 2030 has driven a nearly 30% increase in real GDP over nine years, rising from SAR 2.77 trillion (from early 2016 to Q3 2016) to SAR 3.59 trillion (from early 2025 to Q3 2025). The surge reflects stronger economic activity and a significant expansion of the non-oil sector, whose contribution jumped from 45.9% to 55.4%, underscoring the transition toward a broader, more sustainable economic base.

Over the past decade, the national economy has undergone rapid structural transformation—diversifying income sources, enhancing spending efficiency, and accelerating non-oil activities. These shifts highlight the success of the Kingdom’s economic and fiscal reforms since the launch of Vision 2030.

 

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Private-sector momentum has also strengthened. The share of non-government fixed capital formation climbed from 19.4% in the first half of 2016 to 27% in the same period of 2025, signaling rising private investment and its growing role in driving economic growth. Private final consumption expenditure increased to 43.7% in the first half of 2025, up from 40.5% in 2016—indicating stronger purchasing power and expanding consumer-driven economic activity.

The labor market recorded some of its largest gains under Vision 2030. Saudi unemployment fell from 11.6% in Q2 2016 to 6.8% in Q2 2025—the lowest ever recorded. Meanwhile, women’s labor force participation more than doubled, rising from 17.7% to 34.5%, placing Saudi Arabia among the fastest-advancing economies in women’s economic empowerment.

Trade indicators also showed qualitative improvements. The share of capital and intermediate goods in total imports rose to 68% in the first half of 2025, up from 59% in 2016—pointing to growing industrial capacity and rising demand for equipment supporting local value chains. Non-oil merchandise exports, including re-exports, more than doubled from SAR 87.4 billion to SAR 170.1 billion during the same period, reflecting the rising competitiveness of Saudi products globally.

 

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The travel balance recorded a dramatic shift, moving from a SAR 10.3 billion deficit in the first half of 2016 to a SAR 32.2 billion surplus in the first half of 2025. The reversal was driven by surging tourism, growing visitor numbers, and the expanding appeal of domestic destinations.

Together, these indicators illustrate the depth of the economic transformation underway since the launch of Vision 2030—transitioning from a resource-dependent economy to a diversified one powered by private investment, competitive exports, an increasingly efficient labor market, empowered women, and a thriving tourism sector. They also reflect the strength of fiscal reforms and Saudi Arabia’s capacity to build a more resilient and sustainable economy poised for continued expansion in the years ahead.

Source: https://maaal.com/