Since 2016, Saudi Arabia has also embarked on a more assertive foreign policy. Bilateral economic relations have often become more targeted and disciplined, which is a definite positive. Gone are the days of gifts and grants to regional Arab economies. A wiser direct investment approach has been established during the Salman era. Acquiring publicly listed assets as a way of helping struggling economies has been a more prudent approach, as these are tangible investments with a revenue stream. Conditionality to foreign economic aid was first adopted by the UAE in 2014 for its aid to Egypt and has been pursued by Saudi Arabia during the Salman reign.

Historically, FDI was principally invested in the oil and gas sector and seldom in the non-oil economy. One of the highest recorded FDI years was 2021 when inflows totalled $19.3 billion, of which the bulk came from Aramco selling a $12.4 billion stake in an oil pipeline entity to foreign investors. In 2022, FDI amounted to $32.5 billion, revised from the about $8 billion figure that had been published previously. The updated figure was a result of a new framework methodology for publishing FDI data in Saudi Arabia which was adopted in late 2023.

Diversifying the economy, creating jobs for nationals in the private sector, and implementing a gradual, but noteworthy, fiscal consolidation programme are key priorities

A significant challenge was to meet the aspirations of a young and growing population. Generating about 4.5 million jobs for nationals entering the labour force through 2030 is an overarching challenge. The 1.7 million jobs created for Saudis as a result of the oil rise from 2003 to 2013 were largely employed in the public sector. Job creation had to slow in the coming years as nearly half of the country’s budget was being expended on the wage bill. The NTP set an objective of reducing civil service employment by 20 per cent by 2020, which has still yet to be realized.