Driven by its conviction that the shift from a rentier economy to an inventive, knowledge-based economy is essential, the Kingdom of Saudi Arabia has established itself as one of the top nations in research and development. This is demonstrated by the considerable increase in its R&D expenditures, which represents a qualitative breakthrough that outpaces prior growth rates.
What are the figures regarding this increase in expenditure, and what are the consequences? Which industries provide the majority of the funding? Read on for more information in our article below.
Spending on R&D in Saudi Arabia
According to the General Authority for Statistics, the Kingdom of Saudi Arabia spent over SAR 29.5 billion on research and development in 2024, a 30% increase from 2023.
In comparison to 2022, spending in 2023 increased significantly to about SAR 22.6 billion, or 17.4%, from the previous year.
Funding & Spending
In 2024, the government sector contributed SAR 15.7 billion, or 53% of overall financing, for research and development, while the private sector contributed 41%, or roughly SAR 12.1 billion. Approximately SAR 1.69 billion, or 5.7% of total funding, went towards higher education.
In this regard, the private sector spent the most on Saudi R&D, accounting for 40.3% of total investment, or roughly SAR 11.87 billion. Moreover, higher education came in at 19.5%, or roughly SAR 5.75 billion, after the government sector, which accounted for 40.2% of spending, or over SAR 11.86 billion.
31.4% of total expenditures came from the mining, industry, and electrical sectors. Furthermore, 22.3% of all research and development expenditures came from insurance, business, real estate, and finance services, followed by personal and social services at 19.9% and the remaining economic activities at 26.4%.
Read more: KSA Ranks Second in G20 for ICT Development Index
Total Number of Employees
In a comparable context, higher education was found to employ the largest percentage of people working in research and development (about 71.3%, or 40,300 individuals). The government sector came in second with 6.7%, or around 4,000 workers, and the private sector with 22%, or roughly 12,500 workers.
Read more: Will Saudi Arabia Abandon Some of Its Vision 2030 Initiatives?
Distribution of Researchers
Higher education accounted for 83.4% of the total, or over 34,700 researchers, making it the sector with the largest percentage of researchers. Males accounted for 72.6% of this percentage, while females made up 27.4%. The business sector came in second with 11.6%, or 4,800 researchers, split between women (26.9%) and men (73.1%). The government sector came in second with 5%, or over 2,100 researchers, of whom 41% were men and 59% were women.
Read more: KSA’s Financial Sector & Development Programme: Meeting Goals
Strategic Dimensions
According to experts, the aforementioned data represent a qualitative leap for the Kingdom of Saudi Arabia towards accomplishing practical milestones on the way to a prosperous economic future. They are a concrete example of achieving several encouraging goals, such as:
- The primary idea of Vision 2030 is the shift from a rentier economy to a knowledge-based economy.
- The real contribution of the Saudi research and development sector to the GDP will increase as a result of this large increase in spending.
- Research and development expenditures not only give Saudi Arabia a competitive edge and localise technologies, but they also foster the idea of new industries.
- The number of people working in research and development indicates a noteworthy increase in the effectiveness of human resources.
In summary, we conclude that sectoral collaboration is responsible for Saudi Arabia’s extraordinary increase in R&D spending in the country’s endeavour to realise “Vision 2030.” In addition, this aims to secure a strong competitive edge in international markets, promote new industries, and transform into an inventive knowledge-based economy.
Read more: Four Research Studies Topped the Scene at the Riyadh Economic Forum
