What Role Did Oil Play In The Economic Development of KSA?

Robiul Arif June 15, 2021

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Since the first oil production in 1938 started, Saudi Arabia saw massive development in the economy, infrastructure and living standards.

With the excellent management of oil revenues and the investment on education and human capital, Saudi Arabia has become a member of the G20, the group of the strongest economies in the world, and it is ranked the 21st happiest country in the world. Education and healthcare are some of the best in the entire Middle East.

However, Saudi Arabia is now committed to diversify its economy away from oil through launching the kingdom’s Vision 2030 (aiming for a more sustainable economy). Five years have passed and the following has been achieved:

Increased non-oil revenues (48% of the annual budget).
Introduced 15% VAT.
Allowed foreign tourism and investment (aims to attract 100 million visitors per year by 2030).
Invested heavily in renewable energy (aims to rule the hydrogen fuel market).
reinforced the role of the Saudi Investment Public Fund (IPF), which is bringing in more than $150 billion to the local economy each year (it aims to increase its assets to $2 trillion by 2030).