Visitors in front of the Maraya (Mirror), the world’s largest mirrored building, in AlUla (Loic Venance/Getty Images)

Saudi Arabia is doubling down on tourism as it looks to reduce its reliance on oil

Tourism, sports, data centers, and more. Saudi Arabia is spending billions to diversify its economy.

2/17/25 11:28AM

Saudi Arabia is doubling down on tourism as the world’s largest exporter of oil looks to diversify away from the “black gold” that’s catapulted its economy up the global rankings.

Since opening its borders to leisure tourists in 2019 — and weathering the pandemic-induced decline — Saudi’s tourism sector has soared. Per the World Travel & Tourism Council, tourism accounted for a record 11.5% of its GDP last year, with international visitors’ spending up ~57% year over year.

Now, the country is expanding beyond its usual attractions like Riyadh, pouring millions into projects in lesser-known cities, aiming to pull in 5 million new visitors by 2030, according to Bloomberg.

Those extra tourists will be crucial if Saudi is to reach its target of 70 million annual visitors from overseas by 2030 — a ~$1 trillion government plan to diversify away from its oil-only narrative. So far, things are heading in the right direction: Saudi drew in a record 30 million international visitors last year, a 9.4% increase from the year before. Though slower than the 65% jump from 2022 to 2023, the trend is expected to continue over the next decade, with events like Formula One, the 2030 World Expo, and the 2034 FIFA World Cup on the horizon.

Indeed, tourism’s rise is already lifting the entire economy. In 2024, non-oil activities drove a 1.3% GDP increase, when oil activities contracted due to production cuts and price decline. Currently, the oil sector still makes up over 30% of Saudi’s GDP, though that’s expected to drop to 24% to 26% by 2030, according to S&P Global’s report, with high-profile investments in sport, data centers, tourism, and more.

Jake Lahut

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The UAE’s OPEC exit will hit the group in the barrels

After just shy of 60 years in OPEC, its membership even predating its status as a nation-state, the United Arab Emirates yesterday announced its shocking departure from the oil production group, effective May 1, as the knock-on effects of the Iran war continue to play out across the Middle East and the energy landscape.

For context, the UAE produces the third-highest amount of oil in the group, per April data and OPEC’s latest set of annual statistics.

According to the cartel’s 2025 Annual Statistical Bulletin, the OPEC group was collectively exporting some 19 million barrels of crude oil a day last year, with the United Arab Emirates accounting for some 14% of that daily output.

UAExit means UAExit

The nation, whose energy minister told Reuters yesterday that the decision was taken “after a careful look at current and future policies related to level of production” and wasn’t made following discussions with any other country, made up a healthy share of the group’s total confirmed crude oil reserves, as well.

Of the 12 nations in the core group, which was founded by just five oil superpowers back in September 1960, only two (Iraq and Saudi Arabia) exported more barrels of crude oil daily, pumping out 3.36 million and 6.05 million barrels, respectively, each day to nations around the world.

For its part, the UAE said it will “continue its responsible role by gradually and thoughtfully increasing production, in line with demand and market conditions,” per the official state news agency. Clearly, the nation now wants a little more control of just how much oil it can pump around the world, with the UAE having to eat a large proportion of lost revenues due to its healthy abundance and OPEC restrictions.