Beyond Oil: Saudi Arabia Bonds Emerge as a Compelling Investment

The discovery of oil in 1938 at the Dammam No. 7 well marked the beginning of Saudi Arabia’s economic transformation. Over the following decades, the Kingdom leveraged its vast petroleum reserves to become the world’s largest oil exporter, fueling rapid modernization, infrastructure expansion, and wealth accumulation. By the late 20th century, Saudi had established itself as the largest economy in the Gulf Cooperation Council (GCC), playing a pivotal role in global energy markets. However, as the world shifts towards a more diversified and sustainable economic model, so too has the Kingdom. Today, Saudi is at the cusp of another economic shift, one that extends beyond oil and sets the stage for long-term, multi-sectoral growth.

In this paper, we address the diversification of both Saudi Arabia’s economy and its capital markets, and the opportunities for investors in the Kingdom’s hard-currency and local bonds.