Experts to Asharq Al-Awsat: IMF Indicators Confirm Saudi Arabia’s Continued Income Diversification
Experts told Asharq Al-Awsat that the International Monetary Fund’s (IMF) latest report on Saudi Arabia’s economy – highlighting positive indicators across all sectors – is strong evidence that the Saudi government is continuing its strategy to diversify income sources.
This diversification is designed to maintain a resilient economy capable of withstanding external shocks. They added that the Kingdom is pressing ahead with comprehensive structural reforms to ensure steady growth in the non-oil sector.
The IMF Executive Board concluded its Article IV consultations on Monday, stating that the Saudi economy has witnessed broad recovery across sectors. Experts noted that Saudi Arabia’s ongoing mega-projects are expected to generate further revenues and bolster economic strength.
Shura Council member Fadl bin Saad Al-Buainain told Asharq Al-Awsat that the IMF’s recognition of Saudi Arabia’s economic flexibility and diversity reflects the success of Vision 2030, which focuses on economic diversification and improved efficiency.
Although diversification is still evolving, it has already contributed significantly to financial stability despite fluctuating oil markets, he noted.
The government continues to strengthen its foreign currency reserves to support monetary stability. Al-Buainain highlighted that foreign reserves reached $414.5 billion by the end of 2024. Moreover, non-oil real GDP growth of 4.5% during the year indicates the effectiveness of the Kingdom’s diversification strategies.
This growth has also impacted labor market reforms, including reducing the unemployment rate to a historic low of 7% and raising female workforce participation to 36% by the end of 2024, key goals under Vision 2030. In housing, ownership rates rose to 65.4% in 2024, up from 47% in 2016, which Al-Buainain attributed to successful government policies.
Tourism has emerged as a major beneficiary of economic reforms. The number of local and international visitors surged from 63 million in 2016 to 115.9 million in 2024.
Al-Buainain also pointed to the strength of Saudi banks, which play a central role in supporting private sector growth and funding non-oil projects. Low rates of non-performing loans and solid profitability reflect the sector’s stability.
Although public debt has decreased to 26.2% of GDP – among the lowest in the G20 – he stressed the need to manage debt levels carefully, especially given global economic and geopolitical risks. The government, he said, is now prioritizing projects based on financial capacity and economic returns, aiming to reduce spending pressure and stimulate long-term growth.
Economist Ahmed Al-Shahri echoed the report’s emphasis on sustaining the momentum of reforms initiated in 2016, regardless of oil price trends. He underlined growth across all sectors, including tourism, labor market participation, and foreign investment, all underpinned by strong banking and controlled inflation.
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