Report

Institute for Future Strategy, Seoul National University — Economic Security Cluster
Qualitative Analysis Team Report (12 Countries)
Saudi Arabia’s Economic Security

The Economic Security Cluster at the Institute for Future Strategy (IFS), Seoul National University organized a research team of current and former officials from the Ministry of Foreign Affairs to evaluate and summarize the economic security conditions of twelve key partner countries, identifying their strengths, weaknesses, and strategic linkages with Korea.

This report analyses Saudi Arabia’s strategic transformation as it seeks to move beyond an oil-dependent economy toward sustainable growth and security. As the largest oil producer in the Middle East and a central supplier in the global energy market, Saudi Arabia is pursuing economic diversification through “Saudi Vision 2030”, aiming for post-oil industrial diversification and a private sector–driven economic structure. These reforms constitute a core part of Saudi Arabia’s economic security strategy, directly tied to national stability.

The SWOT analysis identifies the following:

• Strengths: Abundant oil production capacity, low-cost foreign labour and young population, stable political system, strong geopolitical influence, and solid fiscal base.

• Weaknesses: Underdeveloped non-oil sectors, insufficiently skilled domestic workforce, and bureaucratic inefficiency.

• Opportunities: Economic diversification under Vision 2030, large-scale infrastructure and construction projects, development of non-oil manufacturing, renewable energy industrialization, expansion of mining and resource development, growing tourism and sports industries, and regional integration through the GCC’s common market and potential FTAs.

• Threats: Security risks stemming from exposure of critical industrial facilities, potential global oil price collapse, and rising global food insecurity.

Historically, Korea–Saudi economic relations have been relatively linear, focusing primarily on energy imports and construction. However, as Vision 2030 advances, Korea is emerging as a key partner in Saudi Arabia’s diversification agenda. The Saudi government has designated Korea as one of eight strategic countries for cooperation under Vision 2030. Korean firms are expected to expand joint ventures with Saudi partners across manufacturing, IT, cultural content, environmental industries, food and agriculture, defence, and biopharmaceutical sectors.

Looking forward, intensifying multilateral competition in Saudi Arabia—across economic, political, and diplomatic domains—will require a more sophisticated Korean engagement strategy in the Middle East. Korea must invest in capacity-building and human resource development tailored for the region. Moreover, Korea’s diplomacy with Saudi Arabia should evolve beyond a focus on economic interests to include regional cooperation and security partnerships, ensuring a more comprehensive and strategic approach.

Keywords:
Saudi Arabia, economic security, Saudi Vision 2030, industrial diversification, energy transition, Middle East policy, post-oil strategy, renewable energy, economic diplomacy