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

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.