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Saudi Arabia tightens its belt

Raising non-oil growth and non-oil revenue are core targets of the transformation plans and Riyadh has made progress in some areas, particularly tourism and entertainment.

Yet while there has been a rise in non-oil exports, at 24.2 per cent of non-oil GDP they are “well short” of the target of 50 per cent, according to Capital Economics. The kingdom has also struggled to attract the levels of foreign direct investment it is seeking, despite efforts to relax regulations and lure global companies.

Direct investment inflows were $12.3bn last year, according to Capital Economics, a stark contrast with Prince Mohammed’s target of $100bn annually by 2030.

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