When the Oil Nation Prepares to Live Without Oil
For decades, Saudi Arabia has been recognised globally through two major symbols: petroleum and social conservatism. However, geopolitical shifts, energy transition pressures, and global market uncertainties are forcing the Kingdom to re-evaluate the foundations of its power. Riyadh no longer wishes to be known merely as an energy supplier, but as a nation capable of enduring when oil loses its dominance.
Under the leadership of Crown Prince Mohammed bin Salman through Vision Saudi 2030, the Kingdom is undertaking a large-scale economic transformation. Dependence on oil revenue is being reduced by developing new sectors, ranging from tourism, industry, technology, and entertainment to mining and renewable energy. For Saudi Arabia, diversification is no longer an optional extra, but a strategic necessity to face a post-oil future.
The greatest test arrives when oil prices surge. In the past, commodity price hikes often acted as a trap, causing resource-rich nations to delay reforms due to the allure of massive revenues. However, Riyadh is attempting a different path: using oil profits to finance transformation rather than increasing dependency. This reveals a new Saudi paradox, where wealth from fossil fuels is being utilised to prepare for a life when oil is no longer the centre of the world.
Windfall profits from fossil commodities are no longer being squandered on consumptive subsidies; instead, they are being measuredly channelled by the Public Investment Fund (PIF) to accelerate non-oil mega-projects. Saudi Arabia is proving that surges in fossil fuel prices are not a reason to reverse course or slow down, but rather the primary financial fuel to accelerate the transition to a new economic era.
The ‘Saudi Made’ Breakthrough and Massive Technology Transfer
The most concrete manifestation of this diversification is not merely seen in the entertainment arena, the opening of cinemas, or the transfer of global football superstars, which are often criticised as mere ‘sportswashing’.
Behind the spotlight of grand stages and soft diplomacy, an industrial foundation is being systematically built through a national initiative titled ‘Saudi Made’ under the supervision of the Saudi Export Development Authority. This programme is not merely a symbolic exhibition, but a strategic roadmap to increase the share of non-oil exports from 16% to 50% of the non-oil GDP by 2030.
The achievements of this programme have proven substantive. To date, more than 1,740 local companies have joined the ‘Saudi Made’ ecosystem, overseeing more than 7,600 certified products that have penetrated export markets in over 180 countries. Consequently, products once imported and now found in local shops around Masjid al-Haram are increasingly ‘Saudi Made’. Linking national brands with global quality standards has proven effective in changing global perceptions: the Kingdom is no longer just selling crude oil, but is exporting a variety of advanced manufactured products, high-value chemicals, and applied technologies.
The primary strategy within this industrial pillar is massive technology transfer and the establishment of local content requirements. Saudi Arabia is firmly changing its position from a passive buyer of foreign products to a strategic manufacturing partner. Every foreign investment entering the country, defence procurement project, and automotive or renewable energy manufacturing project is now strictly bound by clauses regarding supply chain localisation and knowledge transfer to the local workforce.