Saudi Arabia: Sustaining Strong Growth Amid Global Economic Uncertainty

Saudi Arabia’s economy has performed well in recent years, with the non-oil sector growing strongly, inflation well contained, and unemployment rate falling to a record low. Signs of increased economic diversification are also evident, with the tourism industry expanding rapidly. While lower oil revenue has led to fiscal and current account deficits, these are of limited concern at present given the country’s large asset holdings and low debt levels. The direct impact of heightened global trade tensions on the Saudi economy is limited, but low oil prices could affect the kingdom’s ability to finance its multifaceted investment and diversification strategy. 

This event, based on the International Monetary Fund’s 2025 Article IV report on Saudi Arabia, will consider the economic outlook in Saudi Arabia and the key policy challenges the kingdom is facing as it seeks to sustain strong growth momentum, diversify the economy, and create well-paying jobs for the population.  

How should the government respond to lower oil prices? Are there funding pressures for the numerous projects underway in the kingdom? Do these projects need to be scaled back? How effective have the Vision 2030 reforms been in diversifying the Saudi economy? What role is the Public Investment Fund playing in the Saudi economic transformation? And what are the reform priorities for the kingdom over the next year?   

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