IMF Chief Kristalina Georgieva Commends Saudi Arabia's Robust Economic Diversification Efforts

IMF Praises Saudi Economic Transformation at Al-Ula Conference

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has lauded Saudi Arabia's robust economic performance and significant strides in its diversification agenda. Speaking at the Al-Ula Emerging Economies Conference 2026, Georgieva emphasized that the Saudi economy has demonstrated strong performance in recent years and continues to advance steadily along its path of economic diversification. Her comments underscore the Kingdom's commitment to its Vision 2030 reform program, which aims to reduce reliance on oil revenues and foster a dynamic, diversified economy.

Vision 2030: A Model for Economic Transformation

Georgieva highlighted Saudi Arabia's financial success as stemming from its embrace of the private sector, noting that the Saudi private sector has become 'more flexible and adaptable' and that diversification now 'encompasses all sectors'. She expressed admiration for the Saudi reforms, stating, 'I am a big admirer of the Saudi reforms.' The IMF chief also praised Saudi Arabia's 'wisdom' in assessing its domestic performance amidst global developments and supported its flexible approach to recalibrating investment plans to suit prevailing circumstances. She further commended the prudent public finance management under Minister of Finance Mohammed Al-Jadaan. Earlier, in January 2023 at the World Economic Forum in Davos, Georgieva had described Saudi Arabia as a 'bright spot' for the world economy and expressed being 'incredibly impressed by the progress' in implementing Vision 2030. In April 2024, she cited Vision 2030 as a 'clear example of the possibility of all countries to shift the tides and economically transform'.

Tangible Progress in Non-Oil Sectors and Private Investment

The Kingdom's diversification efforts have yielded significant results, with non-oil activities reaching a historic 50% share of Saudi Arabia's real GDP in 2023, amounting to approximately SAR1.7 trillion (USD 453 billion). This growth has been fueled by robust increases in exports, investment, and consumer spending. Private-sector investments saw a remarkable expansion of 57% in 2023, reaching a record high of SAR959 billion. Key sectors contributing to this diversification include:

• Arts and entertainment: Experienced exceptional growth of 106% between 2021 and 2022.
• Accommodation, food services, transportation, and storage: Grew by 77% and 29% respectively.
• Tourism: Recognized as a cornerstone of diversification, attracting over 100 million visitors by 2023, seven years ahead of the Vision 2030 target. Tourism revenues surged to $36 billion in 2023, with its direct and indirect contribution to GDP rising to 11.5%.
• Digital Economy: Its share of GDP reached 16.0% in 2024.

The IMF's 2024 Article IV Consultation report also noted a robust 3.8% non-oil GDP growth in 2023, primarily driven by private consumption and non-oil investment. Moody's projects non-oil growth to accelerate to 4.2% in 2026.

Human Capital Development and Fiscal Prudence

Georgieva has consistently highlighted Saudi Arabia's progress in human capital development, including the doubling of women in the labor force in just four years (as of October 2022) and female labor participation rates reaching 37% from 18% in 2017, surpassing the 30% Vision 2030 target. The unemployment rate among Saudi nationals has also reached historic lows. The IMF has welcomed the recalibration of Vision 2030 spending, which supports fiscal and external sustainability and helps mitigate overheating risks. Georgieva emphasized the importance of unleashing the private sector through deepening financial markets, reducing barriers to entrepreneurship and investment, and harnessing artificial intelligence by investing in digital infrastructure and equipping young people with necessary skills.