Saudi Arabia is actively working on transforming its economy by reducing its dependence on oil, diversifying income sources, and improving competitiveness. Non-oil growth has seen significant progress, with an average of 4.8 percent in 2022, and it is expected to remain close to 5 percent in 2023 due to strong domestic demand and reforms.
Reforms aimed at enhancing the regulatory and business environment have led to substantial increases in new investment deals and licenses. The Saudi Investment Fund (PIF) is also playing a role in stimulating private sector investment.
To sustain non-oil growth and economic diversification, Saudi Arabia must focus on macroeconomic policies and ongoing reforms. This includes ensuring that large projects generate returns and boost productivity, fostering an environment for innovation, investing in workforce skills, reducing fees and taxes for businesses, and closely monitoring interventions and industrial policies.
Key reforms driving the transformation include labor market reform, which has increased the share of Saudis in high-skilled jobs and female workforce participation, and digitalization, with the digital sector contributing significantly to overall growth, enhancing financial sector resilience, government efficiency, and financial inclusion.
Article:
https://www.imf.org/en/News/Articles/2023/09/28/cf-saudi-arabias-economy-grows-as-it-diversifies
If Saudi Arabia stays committed to this plan of further advancement outside of the oil sector it could be amazing for them, and potentially the rest of the region. Backed by their oil profits, funds for other projects is extremely high and as you said their investments are looking to be paying off with an average of 5 percent growth. Their future truly looks bright if they stay on this course of reform and further advancement of other sectors outside of oil.
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