The Experience of Economic Diversification in Saudi Arabia and the Lessons Learned for Diversifying the Iraqi Economy: An Analytical Study for the Period (2004-2023)

Abstract

This research aims to analyze the experience of economic diversification in the Kingdom of Saudi Arabia during the period (2004–2023) and to derive lessons that can be applied to diversify the Iraqi economy. The study adopts a comparative analytical approach to trace Saudi Arabia’s economic diversification policies and programs within the framework of Saudi Vision 2030, and to compare them with the current state of the Iraqi economy, which remains heavily dependent on oil revenues. The findings reveal that Saudi Arabia has made significant progress in diversifying its sources of income by developing non-oil sectors such as industry, tourism, and financial services, while strengthening the role of the private sector and foreign investment. In contrast, the Iraqi economy still suffers from an almost total dependence on oil and a weak contribution from other productive sectors, due to the absence of strategic planning and an unfavourable investment climate. Achieving diversification in Iraq therefore requires the formulation of a comprehensive national strategy focused on developing non-oil sectors, improving the investment environment, activating public–private partnerships, and enhancing human capital development.