Andersen

Year after year, Saudi Arabia proves that it dominates as one of the most important countries in the world economically, politically and culturally. As Saudi Arabia is the world’s largest oil exporter, and its economy and public finances remain largely dependent on crude oil export revenues, the country’s government is accelerating its efforts to rely more on the growth of non-oil sectors and develop new sources of non-oil income by expanding its economic activities and diversifying its resources from other sectors of the economy such as entertainment, tourism and sports. So far, the Kingdom’s government has largely succeeded in transforming its economy from a complete dependence on oil resources to non-oil resources.

By the end of 2024, the Kingdom will continue to maintain its position as a political and diplomatic leader in the Islamic and Arab worlds. Although 2024 witnessed major changes in the map of political and economic challenges, the presence of the Kingdom of Saudi Arabia was undoubtedly exceptional. As usual, it was an example of a state of stability and prosperity with inspiring and powerful leadership. During 2024, the Kingdom focused on caring for the Saudi citizen and providing all his needs from basic life requirements, such as housing, education and health. This is in addition to providing secondary requirements of entertainment, ease and luxury of living.

By the end of 2024, the Kingdom continues its quest to transform into an advanced country by implementing its Vision 2030 in political and economic development tools. One of the most important features of Saudi policy in 2024 was the escalation of its role in international organizations, and its environmental and economic initiatives, which proves its ability to lead global efforts to address major challenges related to climate change and its geopolitical repercussions.

Among the most important and influential events that occurred in the last quarter of 2024, which will have a great impact on the economic and social development in the Kingdom, are the following:

• On December 1, 2024, the new Riyadh Metro was opened, which will relieve pressure on the roads by removing tens of millions of cars trips every year every day, saving time and alleviating the suffering of citizens due to traffic congestion.
• Sportingly, the greatest event of 2024 in Saudi Arabia was the file to host the 2034 World Cup, when the International Federation of Association Football (FIFA) announced on December 11 that the Kingdom will host the 2034 World Cup

Economically, Saudi Arabia witnessed many wonderful and important events in 2024, events that supported the national economy and helped in its transformation from an economy dependent on oil exports to an economy gradually dependent on non-oil exports and enhancing privatization and private sector activities. The most prominent of these events are the following:

• Stopping contracting with foreign companies that do not have a regional headquarters in Saudi Arabia comes into effect as of January 1, 2024
• Completion of the transfer of 8% of Saudi Aramco from state ownership to the ownership of the Public Investment Fund
• Saudi Arabia agrees with OPEC Plus countries to extend the reduction in oil production from January 1, 2025, until December 31, 2025
• Stopping contracting with foreign companies that do not have a regional headquarters in Saudi Arabia comes into effect
• No intention to impose income tax on individuals in Saudi Arabia
• Extending the decision to exempt small establishments from paying the financial fee for a period of 3 years
• New discoveries of oil and natural gas in the Eastern Province and the Empty Quarter
• Saudi Arabia advances to fourth place globally in the United Nations E-Government Development Index
• Approval of the Real Estate Transactions Tax System and the Commercial Register and Trade Names System
• The Kingdom’s estimated budget for 2025: Revenues 1,184 billion riyals and expenditures 1,285 billion Riyals

In the field of entertainment and tourism, the General Entertainment Authority in the Kingdom has been quick to provide various types of global activities and events that have won the admiration of the whole world and achieved great success. Among these events and activities is the Riyadh Season 2024, which has proven to be a great success as usual by presenting more distinguished events, as it attracted more than two million visitors in its first week, which reflects the Kingdom’s commitment to developing the tourism sector, which provides job opportunities for young people and supports the local economy. The Riyadh Season provides a model for the Kingdom’s plans to develop tourism resources and attract visitors from all over the world, and it also contributes to supporting Vision 2030, which aims to increase the contribution of the tourism sector to the national economy.2024 is also a year of sporting events for the Kingdom of Saudi Arabia.

The year 2024 also stands out as the most important year for sporting events in Saudi Arabia, with sporting events including the highly regarded Olympic Games and four continental football championships including the European Super Cup, the African Super Cup, the Spanish Super Cup, and the Egyptian Super Cup. The Ministry of Sports in the Kingdom of Saudi Arabia has proven its excellence in offering a variety of competitions covering all types of sports, including football, boxing, tennis, rallies, and other sports. The state continues to support sports to meet the public’s need to enjoy more of the sports they support. However, the biggest and most important major sporting event in 2024 is the announcement by the International Federation of Association Football (FIFA) that Saudi Arabia has officially won the bid to host the 2034 World Cup. In addition, a major reform was taken by the Ministry of Sport by privatizing more soccer clubs to increase the number by fourteen additional private clubs.

In short, what has been achieved in 2024 is not temporary achievements, but rather the foundation for a new phase of the Kingdom of Saudi Arabia’s global presence. Today, the Kingdom is no longer just a country at the heart of events, but rather a maker that has an impact on the countries surrounding it and all countries of the world in general. It is the Kingdom of Saudi Arabia, the country that enjoys stability, security and prosperity. It is one of the most attractive countries for investment, as it provides all the opportunities for diverse investments. The Kingdom is now moving steadily towards a more secure, stable and steadfast future.

Saudi Arabia stands globally measured by GDP size:

December 31, 2024 – Source IMF

Saudi Arabia stands globally measured by PPP Adjusted GDP:

December 31, 2024 – Source IMF

In conclusion, the strong economic activity that took place in Saudi Arabia during 2024, which was represented by government spending in the programs of the Vision 2030 and the trend towards relying on non-oil exports and strengthening the private sector. Also, the Kingdom’s openness towards the entertainment, tourism and sports sectors, which enhanced the provision of jobs for Saudis and created huge investment opportunities, helped the Saudi economy grow strongly during the year. Therefore, the GDP in Saudi Arabia is expected to reach 1.860 trillion US dollars by the end of 2024. The Saudi economy has grown at an average annual growth rate of 4.2% over the past four years and ranks eighth among the largest economies in the Asia-Pacific region, ahead of Australia. The Kingdom’s economy is expected to expand significantly as the International Monetary Fund expects oil prices to rise in 2025 to more than $81 per barrel, and the Saudi government hopes that oil prices will reach $100 per barrel by mid-2025 to achieve budget balance.