RIYADH – Saudi Arabia has shifted its focus to developing new economic sectors, including mining, tourism, and information technology, particularly the electronic games sector.
The Kingdom’s economic diversification plan is aimed at seeking alternatives to crude oil revenues as part of its strategic vision for 2030.
“Each sector in the Kingdom has a detailed strategy, Saudi Minister of Investment, Khaled Al-Falih, recently said while emphasizing the significance of having such plans and strategies that positively affect investors and their investment decisions in the Kingdom.
He highlighted that the Kingdom’s economy grew from around $600 billion in 2016 to over $1 trillion by the end of 2022.
Mentioning the Kingdom’s stability and flexibility economically and politically, Al-Falih pointed out that the Gulf country has capacity to deal with shocks and overcome crises.
Mining
In recent years, Saudi Arabia has made significant investments in the mining sector, controlling 40 percent of the Middle East and African minerals and mining market worth US$16 billion.
According to data from the Ministry of Industry, the total revenues of the iron and steel sector in 2020 were US$ 4.7 billion, representing 75.3 percent of the entire GDP of the mining industry in Saudi Arabia, followed by the aluminum sector, with revenues of US$ 1.2 billion.
Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef stated, “Saudi Arabia seeks to unveil mineral wealth estimated at US$ 1.3 trillion.”
He stated that the Kingdom is working to attract global mining companies with vast resources to extract minerals from the desert.
He highlighted that the Saudi government is also making efforts to reduce the time taken to issue mining permits, aiming to increase the mining industry’s contribution to its GDP from US$ 17 billion to US$ 64 billion by 2030.
Tourism
Tourism has become a prominent sector in Riyadh’s strategic plans to diversify its economy. The Kingdom plans to invest more than US$ 1 trillion in tourism over the next decade and expects to receive 100 million visitors by 2030.
The Kingdom hopes to attract US$ 53.3 billion in tourism investments by 2023 and US$ 133 billion by 2030.
In August, the Saudi Ministry of Investment announced that the Kingdom had created US$ 2.5 billion in investment opportunities in the tourism and quality of life sectors.
Electronic games
The electronic games market in Saudi Arabia is expanding rapidly as a part of its plans to transition to a digital economy and to bring this industry into the country.
Saudi Crown Prince Mohammed bin Salman launched the national strategy for games and electronic sports last September, taking a new step toward leadership and making the Kingdom a global center in this sector by 2030.
The new strategy aims to diversify the economy, create job opportunities in various sectors, and provide citizens, residents, and visitors with high-quality entertainment.
“The energy and creativity of Saudi youth and electronic game enthusiasts are the engines of the national strategy for games and electronic sports, which meets the aspirations of the gaming community locally and globally by providing them with new and distinctive job and entertainment opportunities to make the Kingdom a global center for the games and sports sector,” Bin Salman said during the strategy’s unveiling.
The Kingdom intends to implement this strategy through 86 initiatives covering the entire value chain, launched and managed by approximately 20 government and private entities, including the establishment of business incubators, hosting major events for games and e-sports, establishing educational academies, and developing stimulating regulations to ensure the Kingdom’s rapid growth in this industry.
The Saudi Public Investment Fund (PIF) intends to invest US$ 37.8 billion in electronic gaming initiatives and programs, including the establishment of business incubators, hosting major events for games and e-sports, establishing educational academies, and developing stimulating regulations to ensure the Kingdom’s rapid growth in this industry.
According to the Saudi Press Agency, the “Savvy” electronic games group, which the Saudi Fund owns, will invest in the Kingdom’s efforts to become a global game center.
The funds will be used to buy several minority stakes in key companies that support Savvy’s development agenda, as well as US$ 13.30 billion to “acquire one of the best game publishing companies and develop it into an effective strategic partner.”
Another US$ 5.32 billion will be invested “to participate in established companies in the sector, whose plans are consistent with the group’s strategy,” and US$ 532 million will be invested “in innovative emerging companies.”