Saudi Arabia, long associated with its oil wealth, is increasingly expanding into sectors such as artificial intelligence, tourism, and sports to reduce its dependence on oil revenue. According to Saudi Arabia’s Minister for Investment, Khalid Al Falih, more than 50% of the kingdom’s economy is now “completely decoupled” from oil, a significant rise from previous years.

Al Falih highlighted that government revenue used to rely almost entirely on oil, but now 40% comes from non-oil sectors. “We’re seeing great results, but we’re not satisfied. We want to accelerate the kingdom’s diversification and growth story,” he told CNBC.

Artificial intelligence has emerged as a key growth area, with Saudi Arabia positioning itself as a major investor in AI applications and large language models. Al Falih added that the kingdom plans to build data centers at competitive scales and costs, aiming to leverage its energy surplus for AI infrastructure. Experts project potential economic gains exceeding $135 billion by 2030 from AI, according to PwC.

Saudi Arabia’s recent fiscal data reflects this diversification. In the first half of 2025, total government revenue reached 565.21 billion riyals ($150.73 billion), with oil contributing 53.4%—down from nearly 68% in 2019. Non-oil segments grew steadily, while oil activity fell 4.5% year on year. The country’s sovereign wealth fund, the Public Investment Fund (PIF), has invested in tech companies, video game publishers, and even the English Premier League club Newcastle United, signaling a strategic shift toward global investment.

Tourism is another growth pillar. The country’s tourism minister, Ahmed Al-Khateeb, said the sector’s GDP share grew to 5% in 2024 from 3% in 2019, with new resorts, airlines, and airports contributing to expansion. The ministry aims for tourism to reach 10% of GDP by 2030 and potentially 20% in the long term, further supporting economic sustainability.

Despite declining oil prices in 2025, Al Falih emphasized that Saudi Arabia is maintaining public spending and continues to fund strategic initiatives, noting that the PIF has grown sixfold and now deploys nearly $1 trillion across sectors of strategic interest. The kingdom’s approach reflects a deliberate push toward a more diversified, sustainable, and resilient economy.