Saudi Arabia

The transformation has led to liberalisation in many areas of life despite ongoing controversies. For example, Saudi Arabia faces international criticism for recent events surrounding the curtailment of free speech and the repression of journalists. On the other hand, since June 2018 women have been legally allowed to drive cars and the proportion of women participating in the labour market has also risen from 20 percent to 33 percent within two years. In addition, the entertainment and tourism sectors have gained momentum.

Saudi Arabia imports 144 billion US dollars worth of goods, mostly food, chemical products, and cars. Germany is its fourth biggest import partner after China, the US, and the UAE. Germany in turn imports petroleum, chemical products, and raw materials from Saudi Arabia.

Saudi Arabia is trying to become less dependent on oil, it being the world’s largest oil exporter. A large part of the state’s income is generated from the oil business. This is another reason why Vision 2030 envisages a fundamental restructuring of the Saudi economy, transitioning from a rentier economy to a knowledge economy. In 2019, 1.5 percent of the shares in the state-owned oil company Saudi Aramco were sold for 25 billion US dollars. This is part of an investment strategy whose total volume is to amount to four trillion US dollars and is divided among several mega projects such as the new planned city NEOM in the northwest of the kingdom.

The extent to which the planned projects can be completed on time is questionable. However, even a partial success would significantly change the Saudi economy. The numerous investment projects create a broad spectrum of trade and investment opportunities for companies with distinctive know-how in the respective industries. In early 2021, 20 special economic zones were announced for this purpose adding to the attraction of long-term foreign investments.