Nine years into its launch, Saudi Arabia’s ambitious Vision 2030 journey has surpassed many of its targets. Around 85 percent of the nearly 1,500 reform initiatives launched under the program have either been completed or are on track, according to reports from the Kingdom.
The development of a knowledge economy is embedded at the core of Vision 2030. The strategy aims to diversify revenues, increase the private sector’s contribution to GDP to 65 percent by 2030, and reduce oil dependency, which still accounts for roughly 43 percent of the Saudi economy.
The government has successfully implemented more than 900 reforms, including restructuring legal and labor frameworks, establishing new public authorities, and significantly expanding women’s participation in the workforce.
Building a Knowledge Economy
Saudi Arabia’s knowledge economy—driven by human capital, innovation, information and communications technology (ICT), education, and employment—is firmly on a growth trajectory. Backed by its oil wealth and strong fiscal position, the Kingdom, rated by leading global financial institutions as a major G20 economy, has ample resources to fund its transformation.
Digital Economy Reaches 15 percent of GDP
Saudi Arabia’s digital economy is valued at $132 billion, accounting for 15 percent of GDP. The National Strategy for Data and AI, which aims to position the Kingdom as a global leader in artificial intelligence and big data by 2030, plans to train 20,000 AI specialists and data scientists.
The government has invested more than $20.7 billion in AI technologies and data center infrastructure. This spending contributed to a 42 percent increase in national data center capacity in 2024, reaching 290.5 megawatts, according to media reports.
Between 2018 and 2022, AI-related job postings grew at an annual rate of 54 percent, according to The State of AI in Saudi Arabia. The 2024 GAIN Summit report revealed a 42 percent increase in graduates from AI-related fields during 2022 and 2023. Most Saudi universities now offer AI-focused undergraduate programs, while 56 percent provide master’s programs and 9 percent offer doctoral-level opportunities.
By 2030, the digital economy is expected to create 1 million new jobs, contributing to the government’s broader plan to generate 1.5 million jobs overall. The sector’s contribution to GDP is projected to reach 46 percent by 2030.
NEOM and Workforce Demand
NEOM, a cornerstone of Vision 2030, is projected to create more than 1 million jobs by 2030, most of them in technology-related fields. The $500 billion mega-project, powered entirely by renewable energy, is positioned as a global hub for advanced technology and innovation.
Despite recent workforce restructuring—reportedly involving up to 1,000 relocations and potential job cuts to optimize spending—key NEOM initiatives such as the UTAMO entertainment zone and The Line city continue to advance.
Other mega-projects, including the Red Sea Project developed by Red Sea Global and Qiddiya, Riyadh’s entertainment megacity, are expected to generate tens of thousands of service-sector jobs. Funded largely through Public Investment Fund (PIF) investments, these developments align with Saudi Arabia’s goal of attracting foreign investment and reshaping global perceptions of the Kingdom as a sustainable, elite destination.
Unemployment Declines
The share of Saudi nationals employed in high-skilled roles has increased from 32 percent in 2016 to over 40 percent today, supported by initiatives such as the $300 million Saudi Education Fund.
Female labor force participation has more than doubled since 2017, rising from 17.4 percent to 36.2 percent by late 2024. Women now hold 43 percent of middle and senior management roles.
Unemployment fell to 7.7 percent in 2023, down from 12.3 percent in 2016, achieving several Vision 2030 labor targets ahead of schedule.
Private Sector Leads R&D Expenditure
The private sector has played a central role in Saudi Arabia’s economic transformation. Its contribution to GDP reached 47 percent in 2024, exceeding the annual target of 46 percent and up from 40 percent in 2016. The government aims to increase this share to 65 percent by 2030.
Spending on research and development (R&D) rose to $6.02 billion in 2023. Government funding accounted for $3.23 billion (53.6 percent), while the private sector contributed $2.48 billion and higher education received $0.31 billion.
In terms of actual R&D expenditure, the private sector led with $2.31 billion, followed closely by the government at $2.29 billion, and higher education at $1.40 billion.
Saudi Arabia has produced more than 38,000 AI graduates with degrees in AI-related fields such as computer science and engineering, including 6,500 students who studied abroad between 2019 and 2023.
According to Oxford Business Group, artificial intelligence is expected to add $135 billion to the Saudi economy by 2030. The technology sector’s GDP contribution is projected to grow from 1 percent to 5 percent, creating 15,000 new jobs in data and AI alone.
National Upskilling Initiatives
The Kingdom’s new AI-powered National Skills Platform aims to upskill over 3 million people, addressing rising demand for digital, technology, and AI expertise.
Launched in 2023, the Waad National Training Campaign delivered over 1 million training opportunities in its first phase and targets 3 million participants by 2028, supported by partnerships with more than 65 public and private sector entities.
The Skills Accelerator Program has trained over 300,000 individuals across sectors such as energy, finance, retail, and healthcare, using hybrid models that combine virtual and in-person learning. Women-focused employment programs under the initiative exceeded targets by 22 percent and achieved a 92 percent retention rate.
The Middle East’s Largest Digital Talent Pool
Saudi Arabia has the highest concentration of digital talent in the Middle East, with more than 381,000 specialized technology jobs. Women’s participation in the tech sector rose from 7 percent in 2018 to 35 percent in 2024, the highest in the region and above averages in both the G20 and the European Union.
