Financing the Future: How Saudi Arabian Banking Boards Facilitate Investments in Non-Oil Sectors to Support Vision 2030: A Qualitative Approach

Abstract

This study examines the role of Saudi Arabian banking boards in facilitating investments in non-oil sectors to support Vision 2030, the country’s strategic initiative to diversify its economy and reduce reliance on oil revenues. The research explores the impact of banking governance, regulatory frameworks, and financial instruments on capital allocation to key non-oil industries such as tourism, technology, and manufacturing. Through a policy review approach, the study highlights the effectiveness of banking sector strategies in promoting economic diversification.   Findings indicate that while Saudi banks have expanded financing to non-oil sectors, structural challenges persist, including stringent lending criteria, risk-averse investment approaches, and regulatory complexities. The study identifies the growing role of Islamic finance, public-private partnerships (PPPs), and digital banking innovations in enhancing financial accessibility. However, gaps remain in optimizing risk management, fostering SME growth, and ensuring alignment between financial sector policies and Vision 2030 objectives. The study contributes to the existing literature by providing insights into banking governance and financial sector-led economic transformation. It offers policy recommendations for enhancing banking sector contributions to economic diversification through improved risk frameworks, expanded financial inclusion, and technology-driven financial solutions. Strengthening regulatory mechanisms and fostering innovation will be critical to achieving sustainable, long-term economic growth.