Correction of Socio-Economic Model of Saudi Arabia

The economic reforms in Saudi Arabia in 2016-2023 and their preliminary results are considered. The socio-economic model of Saudi Arabia, which existed in 1962-2015, is characterized in the article, it is determined that the model`s maintenance has objective limits due to rapid population growth on the one side with a constant level of oil production on the other. In this regard, the objective causality of the reforms that began in Saudi Arabia in 2016 is illustrated. It is shown that the reforms are carried out in the budgetary, social, investment and sectoral spheres. The decisions of the country's authorities related to the transition to economic diversification are considered. Oil wealth is being redirected to the manufacturing sectors, the extractive non-oil industry, the green economy and services industries – tourism, real estate, entertainment and sports, transport, and financial services. The socio-economic aspects that complicate the development of industry and contribute to the orientation towards the diversification by services development. The key role of the Public Investment Fund in financing the economy has been studied. The Fund acts as a holding structure that participates in the ownership and capital of leading companies in major industries. The directions of state oil company Saudi Aramco's diversification are characterized; Saudi Arabia's policy on the development of non-oil industries is also considered.