In 2024, Saudi Arabia’s ambitious Vision 2030 agenda gained significant momentum, with the Kingdom securing a series of high-profile strategic partnerships that span multiple industries. These agreements, coupled with ongoing reforms, are positioning Saudi Arabia as a global economic and financial powerhouse.
Diversifying the Economy through Strategic Partnerships
The Kingdom has signed key agreements with international governments and corporations in sectors including education, tourism, IT, finance, manufacturing, and renewable energy, according to Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh.
"These partnerships include collaborations with the US, China, European countries, and African nations, focusing on areas like energy, technology, infrastructure, tourism, education, and renewable energy," said Ghulam. "These agreements target key areas such as reducing reliance on oil, improving infrastructure, and fostering innovation while supporting flagship projects like NEOM, Qiddiya, and The Red Sea Project."
Tourism Sector Takes Off
The Saudi Tourism Authority reached a major milestone in May by unveiling the Kingdom’s unique summer destinations at the Arabian Travel Market. This initiative resulted in over 40 new agreements, including partnerships with Saudia, Riyadh Air, flyadeal, Noon, and China’s i2i Group.
"Tourism is expected to play a major role in the Kingdom’s economic transformation," said Ghulam, underscoring the importance of these agreements in promoting the sector and creating new employment opportunities, particularly for youth and women. These efforts are in line with Vision 2030’s broader objectives, which aim to develop year-round attractions and position Saudi Arabia as a top global destination.
Strategic Alliances: A Key Driver of Economic Growth
Abdullah Al-Maghlouth, a member of the Saudi Economic Association, pointed out that the Kingdom’s strategic alliances focus on diversifying the economy, attracting foreign investments, and boosting trade with international partners. These agreements are expected to generate employment opportunities and help diversify the economy greatly.
Construction and Renewable Energy Sectors: Notable Partnerships
In the construction sector, a notable partnership was formed between Saudi Arabia’s National Housing Co. and China’s CITIC Construction. The agreement focuses on developing industrial cities and logistics zones to support residential projects and strengthen the real estate sector.
Renewable energy also made waves in 2024. In January, ACWA Power, a Saudi company, led a $1.5 billion wind energy project in Egypt, one of the largest onshore wind energy projects globally. This initiative will provide electricity to 1 million homes in Egypt and reduce carbon emissions by 2.4 million tonnes annually.
PIF’s Expanding Role: A Driving Force behind Economic Transformation
The Public Investment Fund continues to be a driving force behind the Kingdom’s economic transformation. Since 2017, PIF has created nearly 644,000 jobs and launched 94 new businesses. In 2024, PIF acquired a 15 percent stake in Heathrow Airport for $4.12 billion, signaling its intent to expand its influence in global infrastructure projects.
PIF also partnered with Google Cloud to establish an AI hub in Saudi Arabia, a project that is expected to contribute $71 billion to the country’s GDP over the next eight years. This cooperation seeks to strengthen the Saudi workforce and assist the country’s goal of a 50 percent increase in the information and communication technology industry in coming years.
A Transformative Year: Conclusion
The strategic partnerships and investments forged by Saudi Arabia in 2024 reflect the Kingdom’s commitment to economic innovation, diversification, and global collaboration. By focusing on developing human capital, cutting-edge industries, and sustainable growth, Saudi Arabia is positioning itself as a leader on the world stage across multiple sectors.
Appendix
- List of key partnerships formed by Saudi Arabia in 2024:
- Saudi Tourism Authority: unveiled unique summer destinations at the Arabian Travel Market
- National Housing Co. and CITIC Construction: developed industrial cities and logistics zones to support residential projects
- ACWA Power: led a $1.5 billion wind energy project in Egypt
- PIF: acquired a 15 percent stake in Heathrow Airport for $4.12 billion
- PIF partnered with Google Cloud to establish an AI hub in Saudi Arabia
- List of key sectors impacted by Vision 2030:
- Education
- Tourism
- IT
- Finance
- Manufacturing
- Renewable energy