King Salman reaffirms Saudi economy’s strength, resilience 
Crown Prince Mohammed bin Salman, on behalf of King Salman, inaugurated the second year of the ninth session of the Shoura Council on Sept. 10. In his opening address, the crown prince highlighted the Kingdom’s founding principles — Islamic Shariah, justice and consultation — reminding the nation of the values that have anchored Saudi Arabia for over three centuries.
What stood out, however, was the emphasis on the Kingdom’s economic transformation. The speech not only reaffirmed Saudi Arabia’s commitment to economic diversification but also indicated that these efforts are yielding tangible results.
Non-oil activities now contribute 56 percent of the Kingdom’s gross domestic product — surpassing SR4.5 trillion ($1.2 trillion). This is more than just a statistical milestone; it represents a historical turning point in the Kingdom’s economic narrative.
A clear sign of this shift is the Kingdom’s success in attracting 660 international companies to establish their regional headquarters in Saudi Arabia — well ahead of the Vision 2030 target of 500.
This achievement demonstrates investor confidence and signals that the Kingdom is becoming an increasingly competitive player in the global business landscape, reflecting remarkable improvements in infrastructure, regulatory frameworks, and technological readiness.
Among the milestones achieved are record low unemployment rates, record high female participation in the labor market, and a notable reduction in low-income households
Equally compelling was the speech’s focus on future-facing sectors, particularly artificial intelligence. Rather than viewing AI as a distant frontier, Saudi Arabia appears determined to become a global hub, positioning itself not just as a consumer of innovation but as a producer of cutting-edge technologies. This bold, strategic move aligns with broader global trends and the Kingdom’s Vision 2030 for a knowledge-based economy.
Another area deserving recognition is the localization of military industries. Raising local content from under 2 percent to over 19 percent in a relatively short span reflects not only progress in industrial capacity but also a broader strategic vision to build sovereign capabilities across key sectors.
In a notably candid moment, the crown prince addressed a pressing challenge for Saudi citizens — the growing difficulty of home ownership. He acknowledged that the Kingdom’s economic strength has driven residential real estate prices in some areas to unsustainable levels, significantly increasing housing costs relative to citizens’ incomes. In response, the government has begun developing targeted policies to rebalance the sector, lowering real estate costs, stimulating investment in development and expanding affordable, suitable options for both citizens and investors.
In a similarly candid and transparent manner, the crown prince highlighted that the previous phase demonstrated the capability of both the public and private sectors to confront challenges and swiftly adapt to changing circumstances. The strong performance of government institutions played a pivotal role in absorbing economic shocks while continuously reassessing and adjusting national programs to enhance resilience — without compromising the pace or priorities of development.
The crown prince emphasized that the government will continue evaluating the economic and social impact of public spending to ensure resources align with national priorities, supporting efforts to serve citizens, raise incomes, enhance service quality and improve the overall quality of life for citizens, residents and visitors alike.
Among the milestones achieved are record low unemployment rates, record high female participation in the labor market, and a notable reduction in low-income households.
Overall, the crown prince’s remarks conveyed a clear sense of strategic direction and urgency. It is clear the Kingdom is not merely responding to change but actively driving it.
From my perspective, this marks the beginning of a new chapter for Saudi Arabia, defined by bold ambition, steadfast resilience and an unwavering commitment to transformative progress.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
