Saudi Arabia’s Evolution: Transforming Diplomacy and Power in the Middle East

Not long ago, Saudi Arabia’s influence was largely confined to oil exports and religious leadership. But today, it is brokering peace between old rivals, negotiating with global superpowers, and positioning itself as a technological and economic powerhouse. How did the Kingdom undergo such rapid transformation, and what are the implications of this economic and cultural revolution for the Middle East?

Historically, Saudi Arabia’s deeply conservative, oil-dependent monarchy limited its modernization on the global stage due to the influence of Wahhabi Islam over the government, which restricted political, cultural, and economic reforms. However, this began to change in the 2010s as both economic pressures and the need for modernization became clear. The shift started with the oil price crash in 2014, where there was a 60 percent decline in the price of crude oil from June 2014 to January 2015, resulting in a massive loss of profits for Saudi Arabia. Considering oil is the Kingdom’s main source of revenue, making up about 77-88 percent of its total income, this event greatly destabilized the Saudi economy. As oil revenues dwindled, the Kingdom realized the necessity of diversifying its economy and fostering innovation to remain competitive globally. This led to the creation of Vision 2030, spearheaded by Crown Prince Mohammed bin Salman (known as MBS), aiming to reduce Saudi Arabia's dependence on oil, create new job sectors, and stimulate technological and cultural advancements via projects like the Line City. As a young leader, his visionary approach to advancing the country, while supported by many, has its controversy amongst the traditional values held within the country. 

This strategic vision yielded profound social reforms, which PBS notes included the opening of “first cinemas and music concerts since decades of prohibitions,” the condemnation of religious incitement, and the gradual granting of women several rights, such as the right to drive and increased access to public spaces and the workforce. This challenges Saudi's renowned conservative image and individuals within the country who hold strict traditional values considering the many previously existing limitations restricting religion, music, and women driving. This further aligns with MBS's strong promotion of a “moderate Islam” to transform the hardline kingdom into an open society that empowers citizens and lures investors. His removal of the Wahhabi religious curriculum with a “Saudi first” education, ensures the removal of Ibn Abd al-Wahhab–the founder of Wahhabism–from textbooks and emphasizes Saudi patriotism over a Wahhabi Islamic religious identity. This implies his strong commitment to shifting away from a once ultra-conservative state and expanding away from previous rigid doctrines that have governed society. As of April 2023, nearly half (43 percent) of Saudis agreed with this assertion: “We should listen to those among us who are trying to interpret Islam in a more moderate, tolerant, and modern direction” This dramatic shift unleashed a new wave of advancement, reshaping both Saudi society and its image on the global stage.

The Kingdom's rapid transformation extends beyond domestic reforms to its expanding diplomatic influence. New Zealand Foreign Relations and Trade highlights Saudi Arabia’s role in the 2022 Yemen ceasefire, peacemaking in Sudan despite conflicting factions, and reconciliation with rivals like Iran, Syria, and Türkiye. In Sudan, Saudi diplomacy has balanced relations between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), facilitating peace talks while ensuring humanitarian aid. A key shift in Saudi foreign policy is its historic rapprochement with Iran, brokered through Chinese mediation in 2023. This move reflects a broader strategy of diversifying alliances, reducing reliance on U.S.-led diplomacy, and strengthening regional stability. The Saudi-Iran agreement has since led to cooperation on key issues, including efforts to address Palestinian displacement. As of 2025, Saudi Arabia plays a major role in the Israel-Palestine conflict. Al Jazeera highlights a recent meeting with Egypt, Jordan, Qatar, and the UAE, where Saudi Arabia led discussions countering Trump’s Gaza plan for relocation, by advocating for shelter and housing solutions, reinforcing its role as a regional stabilizer.

Under Vision 2030, Saudi Arabia’s modernization extends beyond cultural reforms. Its visionary advancement led to one key initiative–the development of NEOM, a $500 billion high-tech city extending 48 square kilometers set to become a global hub for innovation. With advanced infrastructure, artificial intelligence, and green energy, NEOM embodies Saudi Arabia's drive to become a technological powerhouse. A crucial aspect of NEOM is its alignment with Vision 2030’s environmental goals, aiming to integrate sustainability into Saudi Arabia’s future economy. The project prioritizes renewable energy, with plans for NEOM to be powered entirely by wind and solar energy, reducing reliance on fossil fuels and addressing climate concerns. This is groundbreaking as it sets up the country as a respected and competitive model for creating such an extensive plan. Additionally, the plan focuses on economic diversification through tourism, entertainment, and investments in non-oil sectors. The project is listed as a $500 billion investment into the city and is seen as an opportunity to create millions of jobs, boost tourism, and develop a knowledge-based economy that will reduce the Kingdom's dependence on oil revenues. Since 2020, Saudi Arabia has also integrated sustainability into its tourism reforms, promoting eco-tourism and conservation efforts as part of its broader climate strategy. Tourists no longer have to be religious pilgrims or businesspersons to visit the Kingdom; now, visitors can apply for visas targeting 100 million by 2030.

Saudi Arabia's rapid transformation is driven by both internal and external pressures, with Vision 2030 reflecting its push for modernization, environmental sustainability, and economic growth. Alongside these domestic reforms, Saudi Arabia has expanded its diplomatic influence through collaboration with the Gulf Cooperation Council, Jordan, and Egypt on a plan to rebuild Gaza through a Gulf-funded initiative, remove Hamas from governance, and establish a Palestinian-led administration allowing Saudi Arabia to position itself as a regional stabilizer, supporting Palestinian civilians while avoiding direct recognition of Hamas. By leading reconstruction efforts, it reinforces its influence in the Arab world while aligning with U.S. interests in promoting regional stability. Saudi Arabia’s diplomatic engagement with the U.S. brings key security benefits, such as joint military exercises, arms deals, and intelligence sharing.

While the Kingdom of Saudi Arabia still faces many challenges regarding human rights, particularly with the LGBTQ community and political reforms, its overall progressive efforts in the city of Riyadh to reshape its image and influence on the global stage are praised by international organizations, foreign governments, and global investors. For example, the World Economic Forum has recognized Saudi Arabia's push for economic diversification and sustainability, while governments such as the U.S. and the UK have welcomed its efforts in regional diplomacy. Additionally, former U.S. President Bill Clinton has praised Saudi Arabia for its efforts to modernize its economy and its role in regional stability. As Saudi Arabia continues its journey toward Vision 2030, its impact on both the Middle East and the world will only continue to grow, marking a new era of progress and possibility for the Kingdom.