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Saudi Arabia's minister of investment on Vision 2030 and the world's search for reliable partners | Fortune

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  Published in Business and Finance on Sunday, October 26th 2025 at 5:51 GMT by Fortune
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Saudi Arabia’s Vision 2030: Khalid Al‑Falih Charts a New Path for Investment, Partnerships and Supply‑Chain Resilience

Khalid Al‑Falih, the former oil minister who has now taken the helm of Saudi Arabia’s Vision 2030 program, is steering the Kingdom’s long‑term transformation with a focus on attracting foreign investment, building strategic partnerships, and strengthening domestic supply chains. The Fortune article released on October 26 2025 captures Al‑Falih’s latest outreach to global investors and outlines the specific mechanisms the Saudi government is deploying to achieve its diversification goals.

A Brief on Al‑Falih and Vision 2030

Al‑Falih joined Saudi Arabia’s cabinet as Minister of Energy, Industry and Mineral Resources in 2020, before being elevated to Minister of Investment in 2021. His career has spanned the private sector—most recently as CEO of Saudi Aramco—and public service, giving him a deep understanding of both the Kingdom’s resource base and its aspirations to become a global investment hub.

Vision 2030, launched in 2016, aims to reduce Saudi Arabia’s economic reliance on oil to 50 % of GDP, increase private‑sector participation to 70 %, and develop key non‑oil industries such as technology, renewable energy, tourism, and logistics. The program also includes social reforms to improve education, health care, and women’s participation in the workforce. Al‑Falih’s current mandate is to translate these broad objectives into concrete, investment‑friendly policies and to ensure that supply‑chain infrastructure supports the growth of new sectors.

Investment Strategy: “Open Doors, Closed Borders”

Al‑Falih’s “open doors” policy is designed to make Saudi Arabia an attractive destination for international capital. Key elements include:

1. Regulatory Simplification – The Saudi government has streamlined the investment approval process. Within 30 days, foreign companies can obtain the necessary permits, and the Ministry of Investment offers a one‑stop‑shop portal for all regulatory requirements.
2. Tax Incentives – Investors in designated free zones receive up to 80 % tax holidays, and special preferential treatment is offered to companies that create jobs for Saudi nationals.
3. Sovereign Wealth Partnership – The Public Investment Fund (PIF) is actively seeking joint ventures with global firms, offering minority stakes in projects that align with Vision 2030’s objectives. Al‑Falih notes that the PIF has already invested in renewable‑energy parks and advanced manufacturing facilities.

The article cites a recent PIF partnership with a leading European automotive supplier to build a high‑tech assembly plant in Jeddah. The venture is expected to create 5,000 jobs and position Saudi Arabia as a key component supplier for the Middle‑East automotive market.

Building Strategic Partnerships

Al‑Falih emphasizes that partnerships are central to the Vision 2030 agenda. He stresses that collaboration must go beyond capital infusion; it should include knowledge transfer, technology licensing, and workforce development. A few high‑profile partnerships highlighted in the article are:

• Technology and Innovation – A joint venture with a global AI firm aims to establish a research hub in Riyadh focused on machine learning and autonomous systems. The hub will offer training programs for Saudi students and provide consultancy services to local companies.
• Renewable Energy – Saudi Arabia has signed a memorandum of understanding (MoU) with a leading German renewable‑energy company to co‑develop a 5 GW solar farm in the Eastern Province. The project will use German photovoltaic technology and Saudi labor, aligning with the Kingdom’s 50 % renewable target by 2030.
• Logistics and Supply‑Chain Integration – In partnership with the International Maritime Organization (IMO) and a U.S. logistics firm, Saudi Arabia is upgrading the port of Yanbu to handle container volumes of 10 million TEUs annually. The expansion includes a digital tracking system that will improve cargo visibility and reduce clearance times by 30 %.

Al‑Falih’s emphasis on “win‑win” partnerships signals a shift from the historically insular approach of the Kingdom’s investment regime. He encourages foreign firms to consider the long‑term benefits of embedding themselves in Saudi’s supply‑chain ecosystem.

Supply‑Chain Resilience: The Core of Vision 2030

The article places a strong emphasis on supply‑chain resilience—a concept that has gained prominence after the COVID‑19 pandemic and geopolitical tensions in the Middle East. Saudi Arabia’s supply‑chain strategy includes:

1. Diversification of Raw Materials – The government is sourcing raw materials for the manufacturing sector from within the Gulf Cooperation Council (GCC) and beyond, reducing dependency on a single source. A new memorandum between Saudi Arabia and the UAE’s Emirates Group will facilitate cross‑border trade of critical components for the aerospace sector.
2. Digitalization – Investment in blockchain and Internet‑of‑Things (IoT) technologies is being accelerated to enable real‑time inventory tracking. Al‑Falih notes that the Ministry of Investment launched a “Digital Supply‑Chain Initiative” to pilot blockchain for tracking pharmaceuticals and medical equipment.
3. Infrastructure Upgrades – The article describes the construction of a new inland freight corridor connecting Riyadh to the Red Sea ports. The corridor will cut shipping times by 15 % and reduce logistical costs for manufacturers in the central region.

Al‑Falih frames these initiatives as a way to ensure that Saudi Arabia can become a “regional hub” for manufacturing and services, not just a commodity exporter.

Social Impact and Workforce Development

Beyond economic metrics, Al‑Falih stresses that Vision 2030 must deliver tangible social benefits. The article highlights:

• Women’s Employment – The Ministry of Investment is launching a scholarship program to train women in STEM fields. Al‑Falih predicts that female participation in the workforce will rise to 25 % by 2030, a target that aligns with the Vision 2030 gender equality objectives.
• Education Reform – Partnerships with international universities are enabling joint degree programs, which will better prepare Saudi graduates for roles in high‑tech industries. A Memorandum of Understanding between the Saudi Ministry of Education and a leading U.S. university will allow Saudi students to obtain dual degrees in electrical engineering and data science.
• Health Care Improvements – Al‑Falih mentions a public‑private partnership with a U.S. medical device manufacturer to establish a state‑of‑the‑art research center in Riyadh. The center will focus on precision medicine and develop treatments for diabetes and cardiovascular diseases, conditions that remain a major public health concern in the Kingdom.

These social initiatives are framed as integral to the overall success of Vision 2030, ensuring that economic diversification also translates into improved quality of life for Saudi citizens.

Looking Ahead: The Road to 2030

The Fortune article concludes with Al‑Falih’s vision for the next decade. He sees Saudi Arabia not only as a source of capital but also as a global partner capable of sharing expertise, technology, and best practices. By 2030, Al‑Falih anticipates that the Kingdom will:

• Have attracted over $600 billion in foreign direct investment.
• Expand its private‑sector GDP share from 30 % to 45 %.
• Achieve a 50 % renewable‑energy penetration in the national grid.
• Position Riyadh, Jeddah, and Dammam as the leading logistics and manufacturing hubs of the GCC.

He frames these goals as attainable through continued policy reforms, robust partnership frameworks, and a steadfast commitment to building resilient, diversified supply chains.

Key Takeaways

• Khalid Al‑Falih is steering Vision 2030 with an emphasis on investment openness, partnership cultivation, and supply‑chain resilience.
• The Kingdom’s investment strategy includes regulatory simplification, tax incentives, and sovereign‑wealth participation through the PIF.
• Strategic partnerships across technology, renewable energy, and logistics are central to Saudi’s diversification plan.
• Supply‑chain resilience is being addressed via raw‑material diversification, digitalization, and new infrastructure projects.
• Social impacts—women’s employment, education reform, and healthcare improvements—are integral to Vision 2030’s success.
• Al‑Falih projects a dramatic shift by 2030, with Saudi Arabia becoming a global innovation hub and a cornerstone of the Middle‑East economy.