Which sector is growing fast in Saudi Arabia?

Saudi Arabia has gone through a prominent economic transformation, motivated by Vision 2030, with a goal to expand its economy beyond oil. This initiative has not just opened the doors for new investments but also uplifted the growth of non-oil sectors, progressing the region into a modern era of innovation, sustainability, and global competitiveness. Among the many sectors that are undergoing an economic shift, several stand out because of their scale, investment potential, and national importance. In this blogpost we will further short list some of the emerging sectors of Saudi Arabia and how they are contributing towards a new revolutionary era.

Booming sector in Saudi Arabia

1.   Construction and Real Estate

Construction and real estate sector are the backbone of Saudi economic transformations. KSA has invested a huge amount into some of the mega projects like NEOM, the Red Sea Project, Amaala, Qiddiya, and Diriyah Gate. These latest developments have an aim to revolutionize urban living, tourism and commercial activities across KSA. The construction market is expected to rise from $70 billion in 2024 to $91 billion by 2029 while Real estate was the top recipient of corporate loans in 2025, with a 40.5% year-on-year increase. Both industries are scaling new peaks with the expanding demand for infrastructure, housing, commercial space, and leisure developments. Which is why this sector has become a new attraction for both local and international investors.

2.   Tourism and Hospitality

Saudi Arabia is working towards its tourism sector by making it a global tourism hub through glorifying its natural beauty, rich culture and Islamic heritage. In the last 2 years the country has welcomed over 100 million tourists from around the globe, surpassing some of the world’s top destinations. The Vision 2030’s aim is further boosting the tourist sector by increasing its GDP contribution from 3% to 10% through the key initiatives like:

• Allowing tourist visas to over 49 countries.
• Building international airports.
• Hosting global events such as the Riyadh Season, Formula E, and the upcoming FIFA World Cup 2034.

The Ministry of Tourism is progressively working in training locals to support this growing industry, further assuring sustainability and employment generation.

3.   Renewable Energy and Green Technology

Aligned with the Global trends and shifts, emerging economies are investing intensely in renewable energy. The goal of KSA is to generate 50% of its energy from renewable resources by 2030. The greatest projects for this purpose are Sakaka Solar Plant, Dumat AL Jandal, and Green Hydrocarbon initiatives. These ventures ensure net zero carbon emissions by 2060, promoting clean energy, storage and long-lasting practices.

4.   Information and Communication Technology (ICT)

In the MENA region, the Saudi ICT sector is expanding rapidly, and the government is encouraging the digital transformation through plans like AI, Cloud computing, cyber security and 5G infrastructure. The projects like Smart Riyadh, the digital government authority and the national center for artificial intelligence is positioning KSA as a regional leading tech zone. KSA is promoting local tech startups and building global partnerships with major tech brands like Google Cloud and Huawei. In recent years over 300 tec startups have been funded through public-private partnerships.

5.   Healthcare and Life Sciences

With the surging population and high emphasis on development, the KSA healthcare sector is undergoing a turnaround. Vision 2030’s goal is to enhance healthcare access, quality, and proficiency. Their main targeted areas are Telemedicine services, Privatization of hospitals and Biotechnology and pharmaceutical research. Mainly public and private partnerships are being encouraged, and international hospitals are being operated within the Kingdom. The Healthcare market is projected to reach $50 billion by the end of 2025 and telehealth usage grew up to 72% from 2021 to 2024.

6.   Education and Human Capital Development

Education is the foundation of everything, no matter how much a country invests in any sector. If the education sector is not promising enough, there is a high chance of short-term economic success. Therefore, KSA is focusing on making the country future-ready through STEM education, digital learning, and vocational training. The major initiatives for this purpose are King Salman Global Academy for Arabic Language, launch of many global university branches in Saudi Arabia and national e-Learning platform for remote education. KSA has also increased the educational loans to 44.7% in 2024 to further foster this sector. These programs are not just boosting the modern-day education but also securing the future of Saudi youth. Additionally, Saudi Arabia aims to be in one of the top 30 education systems globally by 2030.

7.   Manufacturing and Industrial Development

For economic diversification Industrial developments plays a mandatory role. KSA is working towards its industrials sectors through elevating its capabilities in chemicals, automotive, electronics, and defense manufacturing. The major industrial hubs of KSA are King Abdullah Economic City (KAEC), Ras Al-Khair and Jazan City for Primary and Downstream Industries. Saudi government has also offered foreign businesses incentives to develop their regional headquarters and production offices. Its significant goals are to increase the GDP from the contribution of Manufacturing from 12% to 20% by 2030. KSA is putting over $50 billion into new industrial projects.

8.   Entertainment, Culture, and Sports

Cultural intricacies were once a massive hurdle in the flourishing of entertainment and sport sectors. However, today KSA has lifted those barriers and introduced cinemas, concerts, theme parks and international sports events into the Kingdom. Qiddiya Entertainment City is an example. Similarly, the Riyadh Season, which is a series of entertainment festivals, is also cultivating entertainment growth. KSA has also done Partnerships with global sports leagues (F1, WWE, and football clubs). With all these advancements, the entertainment sector is projected to reach $1.2 billion by 2030 as over 5,000 events were held in 2024 alone.

SS&CO’s Strategic Advisory for the Modern Business World

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• Energy: Legal Advisory Services on IFRS compliance, tax structuring, and joint venture audits for oil, gas, and renewables.
• Construction & Infrastructure: Accounting on the project basis, cost control, VAT compliance, and contract-based financial solutions.
• Technology & Telecom: Expandable accounting systems, cash flow forecasting, and support for SaaS and subscription-based models.
• Retail & FMCG: Margin expansion, inventory control, ERP integration, and financial risk handling.
• Healthcare: Budgeting and forecasting, smart decision making, internal controls, forensic accounting, and investment advisory for hospitals and pharma firms.
• Real Estate & Hospitality: REIT advisory, lease classification, valuation of assets, and investor reporting support.

No matter if a startup is looking for accounting support or a multinational enterprise needs assistance, SS&CO is here to serve as a trustworthy partner by staying by their side through handling complex financial systems with clarity, compliance and long-term vision.