Saudi’s Primary sectors to see $1 Trillion investment by 2030, predicts Goldman Sachs

Goldman Sachs Research predicts Saudi Arabia will witness approximately $1 trillion in initial investments across its primary six sectors by 2030. This move is part of the country's ambitious efforts to reshape its economy.

These investments are a segment of the larger $3.3 trillion goal set by Saudi's National Investment Strategy (NIS). A breakdown reveals that $245 billion will be directed towards upstream energy. In contrast, downstream energy and metals and mining will receive $100 billion and $170 billion, respectively. The research further detailed that the transport and logistics sector is projected to get about $150 billion, with ICT and digital innovation earmarked for $147 billion. The sectors of renewable energy, electric vehicle manufacturing, and clean hydrogen are set to get investments of approximately $120 billion, $50 billion, and $36 billion, respectively, by the decade's close.

Goldman Sachs emphasized that these sectors are already reaping the benefits of elevated investment levels. These sectors are positioned to spark a significant capital expenditure surge as the decade concludes.

Goldman Sachs Research analyst Faisal AlAzmeh mentioned in a team report, "With a focus on six pivotal sectors, we foresee close to $1 trillion in early-stage investments by decade's end. This projection includes various investment schemes, and we anticipate more projects being unveiled in line with technological advancements and as Saudi boosts the rollout of its grand projects and futuristic cities."

In a recent communication, Goldman Sachs highlighted the evident positive shifts due to Saudi Arabia's commitment to economic diversification.

Introduced in 2021, NIS is a foundational component of the Vision 2030 initiative, representing the Saudi government's road map for economic metamorphosis. Central to this strategy is elevating foreign direct investment (FDI), projected to rise to 3.4% of the GDP by 2025, culminating in 5.7% by 2030.
Integral to the NIS is the 2021 Shareek program. It aspires to amplify domestic investments by private enterprises to reach the $1.3 trillion mark by 2030.

Highlighting some growth strategies:
Saudi's green tech arena will add 60 gigawatts of renewable power and between two to three GW of nuclear energy by 2030.
In 2021, to propel the metals and mining sector, Saudi Arabia introduced a fresh investment policy. This policy aims to simplify securing mining licenses and capitalizes on the estimated $1.3 trillion worth of largely untapped metals and minerals.
Saudi's efforts to elevate its transport and logistics segment are evident in the launch of its revamped National Transport and Logistics Strategy, the new Saudi Aviation Strategy, and a novel national airline. Expansion plans for the King Salman International Airport are also on the horizon.

For the digital transformation front, telecommunication entities are zooming in on augmenting network capacity, spotlighting 5G and fiber-to-home solutions.