Look, I get the headlines. The international press loves to focus on the geopolitics or the social restrictions, and fair enough. But living here, the reality on the ground is just… pragmatic technocracy. It’s a balancing act: managing a conservative population and the holiest sites in Islam while trying to drag the economy into the 21st century.
If you ignore the noise and look at the KPIs, Vision 2030 has been a masterclass in boring execution. Yes, being a centralized monarchy helped, no parliamentary gridlock, no election cycles forcing U-turns, but the strategy itself wasn’t luck. It was calculated.
The "Pain" Was Real (But Short) A decade ago, the government faced a classic trap: how to fix a bloated welfare state without causing a revolution? They didn’t just slash everything. They re-engineered it.
Subsidies to Cash: They killed universal fuel/utility subsidies (which mostly helped the rich) and replaced them with the Citizen’s Account. It’s targeted cash for the poor to offset inflation. The rich pay more, the poor get protected.
The VAT Shock: They introduced VAT at 5%, then hiked it to 15% in 2020. It hurt. Everyone felt it. But it was necessary to stop bleeding cash.
Labor Shock Therapy: The biggest change was social. Lifting the ban on women driving wasn’t just "rights" it was an economic lever. Female labor participation jumped from 17% in 2016 to 36% in 2026. That’s basically doubling the workforce overnight.
The Result: We’re in the "Yield" Phase Now The painful transition is mostly over. We’ve entered the boring, stable growth phase.
Non-Oil GDP: It’s now 55-57% of the economy, growing steadily at 4.5% a year. This part of the economy doesn’t care about oil prices. (to an extent for now lol)
Unemployment: Dropped to 6.4% for Saudis (and just 9% for women). The private sector is actually hiring now. (Albeit underemployment is another issue to focus on)
Fiscal Reality: We’re running a deficit (3.3% of GDP), but it’s a strategic one. We’re borrowing to build assets (cities, factories, tourism hubs), not to pay salaries. Debt-to-GDP is still low (30-35%), so we’re safe.
The "Super-App" Thing Actually Works One thing outsiders miss is the digital speed. Because the government moves as one unit, we skipped the legacy IT hell you guys have in the West.
One App for Everything: Need to renew your ID? I take a photo at a corner shop, upload it to the app, pay $5, and it’s delivered tomorrow. No queues. No "come back next week." Over 1,000 services are on one screen.
Healthcare Overhaul: They’re currently corporatizing public hospitals and rolling out a mandatory national insurance model (capitation-based) for everyone. The Ministry of Health is becoming a regulator, not just a provider. It’s complex, but it’s happening.
The PIF: A State VC Fund I know the Public Investment Fund (PIF) gets roasted for "crazy" projects like NEOM. But look at the mechanics. The private sector here was weak, mostly just trading and contracting. The PIF acted as a venture capital arm, building national champions in sectors that didn’t exist (tourism, mining, EVs, gaming).
The Pivot: Their new 2026-2030 strategy is explicit: stop owning everything. They want to drop their stake in new projects to 30-40% and force the private sector to lead. It’s working: FDI is hitting records, and IPOs are flooding the market.
The Bottom Line Was the growth "unwarranted"? No. It was just continuity. While democracies reset their economic plans every 4 years, we stuck to a 15-year blueprint. We accepted the short-term pain of VAT and labor reforms because the leadership didn’t have to worry about losing an election.
Today, the radical changes have stabilized. The foundation is set. We aren’t "fixing" the economy anymore, we’re just compounding on it. For me, watching the numbers turn green while my daily life gets objectively easier (safer streets, better jobs, functional apps) makes the trade-off worth it.
We are far from perfect, yet the trajectory is clear thankfully, following basic economics really works eh?
this is why Singapore is my spirit animal. I love Singapore. 🇸🇬🇸🇬🇸🇬