Overview
Both Oman and Saudi Arabia are pursuing ambitious economic diversification agendas to reduce dependence on hydrocarbon revenues. Oman’s Vision 2040 and Saudi Arabia’s Vision 2030 share common themes of private sector growth, tourism expansion, and human capital development, but they differ in scale, approach, and available resources.
Oman’s Diversification Strategy
Oman’s Vision 2040 targets a transformation of the economy through five key sectors: tourism, logistics, manufacturing, mining, and fisheries. The strategy emphasises sustainable development, leveraging Oman’s geographic position along major shipping routes, and developing the Duqm Special Economic Zone. Oman aims to raise non-oil revenue to 90 percent of government income by 2040.
Saudi Arabia’s Diversification Strategy
Saudi Arabia’s Vision 2030, backed by the Public Investment Fund with assets exceeding USD 900 billion, is building entirely new cities like NEOM and developing massive entertainment and tourism projects. The Kingdom aims to attract USD 100 billion in annual FDI and grow the private sector’s share of GDP to 65 percent. Mega-projects set Saudi diversification apart.
Key Differences
The primary difference is scale and capital. Saudi Arabia’s PIF dwarfs Oman’s investment capacity. Oman focuses on organic growth in existing sectors, while Saudi Arabia is creating new sectors from scratch. Oman’s approach is arguably more measured and sustainable, while Saudi Arabia’s is transformational but carries higher execution risk.
Verdict / Bottom Line
Both strategies are credible given each nation’s resources. Oman’s targeted, incremental approach may yield more sustainable results, while Saudi Arabia’s capital-intensive mega-project model could generate faster GDP diversification if execution challenges are overcome.