Saudi Arabia’s Vision 2030: Economic Diversification, Regional Cooperation, and the Future of the Middle East Political Economy

Saudi Arabia’s Vision 2030 represents a transformative agenda aimed at reducing the Kingdom’s dependence on oil revenues and fostering economic diversification. This study critically examines the implications of Vision 2030 for the future of the Middle East’s political economy, with a particular focus on its potential to enhance regional cooperation and stability. The study seeks to analyze the effectiveness of Saudi Arabia’s economic diversification strategy in reducing oil dependency, assess the impact of Vision 2030 on regional economic cooperation, and evaluate the broader geopolitical and economic stability implications for the Middle East. This research employs a qualitative methodology, incorporating a case study approach to examine Saudi Arabia’s economic policies under Vision 2030. Primary data is drawn from official Saudi government reports, policy papers, and economic indicators, while secondary data includes scholarly articles, books, and reports from international financial institutions. The theoretical framework guiding this research is Rentier State Theory (RST) and Neoliberal Institutionalism. findings suggest that while Vision 2030 has made progress in diversifying the Saudi economy, challenges such as labor market inefficiencies, bureaucratic inertia, and geopolitical tensions continue to pose significant obstacles to achieving regional integration. Ultimately, this study contributes to the academic discourse on economic diversification in rentier states and provides insights into how Saudi Arabia’s economic transformation could shape the Middle East’s future political and economic landscape.