Saudi economy surpasses key milestone in diversification: Investment Minister

Khalid Al-Falih, Minister of Investment

Saudi Investment Minister Khalid Al-Falih said the kingdom's economy has passed a major milestone in its diversification process, with non-oil activities now accounting for 52% of total economic activity.

Speaking at the PIF Private Sector Forum 2025, Al-Falih noted that Saudi Arabia’s economy stood at SAR 4 trillion ($1.1 trillion) by the end of 2024.

He revealed that private sector investments are expected to reach SAR 1.2 trillion in 2024, based on preliminary fourth-quarter estimates. This marks a sharp increase from SAR 600 billion before Vision 2030, bringing the country closer to its goal of raising fixed capital formation to 30% of GDP.

The minister added that the number of registered investment licenses surged from around 4,000 in 2019 to approximately 40,000 today. Meanwhile, the number of global companies with regional headquarters in Saudi Arabia jumped from just five to nearly 600, a milestone expected by the end of this week.

Al-Falih described the Public Investment Fund (PIF) as a "global benchmark" for sovereign wealth funds. He noted that many countries aiming to accelerate economic growth are now establishing sovereign funds—not just to boost reserves but to serve as key economic drivers.

He also highlighted that US President Joe Biden recently referenced the PIF, underscoring the fund’s growing global prominence and the increasing responsibility that comes with it.