Saudi economic reforms boost non-oil revenues, reduce oil dependence: study

The financial and economic reforms carried out by the Saudi government as part of Vision 2030 raised the Kingdom's non-oil revenues which are witnessing steady growth, a study by the Japan Institute of International Monetary Affairs (IIMA) showed.

The Kingdom is moving towards reducing dependence on oil and increasing non-oil revenues to SAR 1 trillion by 2030, which will greatly boost its financial stability, the study added. 

When Crown Prince Mohammed bin Salman announced Vision 2030 in 2016, the Kingdom's non-oil revenues increased by 78.7% from SAR 186 billion to SAR 332.4 billion, as the average annual increase during this period hit 22%. 

If the Kingdom maintains these levels, it will achieve its goal of increasing non-oil revenues to SAR 1 trillion in 2030, the IIMA study indicated. 

These measures helped the Saudi economy overcome COVID-19 repercussions and a plunge in oil prices, the study said, referring to the increase in the number of privatization projects year-on-year to partially boost the government's non-oil revenues. 

The study also emphasized the importance of reforming the Kingdom’s industrial structure, whose gross domestic product (GDP) reached almost SAR 2.8 trillion in 2019, to which the oil-related industries contributed 43%.