The global rise of Saudi Arabia and lessons for Pakistan to learn

The mood was definitely festive as Wilfried, my German economist friend, and I made our way to the beautiful King Abdullah Financial District in the brand-new Riyadh Metro. The cheerful bonhomie was partially due to Saudi Arabia’s confirmation as host for the 2034 FIFA World Cup. The confirmation was welcomed with spontaneous celebrations across many cities in the Kingdom. 

The World Cup in 2034 would be the third mega global event to take place in the Kingdom over the next 10 years along with the 2027 AFC Asian Cup and the Riyadh Expo 2030. These mega events are not only evidence of the Kingdom’s growing influence at the global stage, but they will also have a long-term positive impact on the Saudi economy that has come a long way since the launch of Vision 2030, eight years ago.

To be sure, the World Cup is going to be a giant undertaking with 11 new state-of-the-art stadiums and expansion in the number of airports, airlines and hotels. All this infrastructure investment will generate significant economic activity and many temporary and permanent jobs. Most importantly, building this infrastructure will assist in the ongoing diversification of the Saudi economy, perhaps even making Riyadh a strong contender for hosting the Olympic Games in 2040.

Saudi Arabia’s global rise is a testament of how far the world’s economic center of gravity, the weighted average of the location of economic activities, has shifted away from Western economies.

A study by McKinsey Global Institute calculated the global center of gravity from AD 1-2025. In AD 1, the economic center of gravity was in modern-day Pakistan as China and India were huge economies even at that time. But, the economic center of gravity kept moving westward, gradually at first, then rapidly once the Industrial Revolution got underway.

After WW2, the economic center of gravity turned back eastward with massive shifts to the east after the year 2000, roughly coinciding with the start of exponential economic growth in both China and India. 

Saudi Arabia’s global rise is a testament of how far the world’s economic center of gravity, the weighted average of the location of economic activities, has shifted away from Western economies.

Dr. Aqdas Afzal

Now, after 2025 years, the economic center of gravity has returned to almost the same place from where it started its journey to the west. Moreover, since China and India were responsible for almost half the global economic growth this year, the economic center of gravity is likely to stay around Pakistan for the foreseeable future. 

Given such economic realities, many nations have started making earnest efforts at increasing their economic and cultural engagement with China. For instance, Saudi Arabia has started to incorporate the teaching of Chinese language in school curricula. 

As the Chinese language races ahead in global influence, the Urdu language is struggling to keep pace. It is a bit surprising given that Urdu is spoken and understood by people in Bangladesh, India, Nepal, Pakistan and Afghanistan with large parts of Africa also understanding bits and pieces, thanks to Indian films that are essentially in the Urdu language.

Saudi Arabia and Pakistan stand to mutually benefit from developing a reciprocal language instruction and teacher exchange program. Saudi teachers get to teach Arabic in Pakistan, while Pakistani teachers come to teach Urdu in the Kingdom. As Saudi Arabia’s economy goes into a significant growth phase, familiarity with Urdu would open up a huge swathe of the globe for Saudi entrepreneurs, while Pakistanis conversant in the Arabic language would find it easier to bag some of the high-skill jobs that are going to be created in the Kingdom. 

Pakistan policymakers may want to study how Saudi Arabia is creating linkages between mega events and economic growth. Though not as grand as the events coming to Saudi Arabia, Pakistan also tried its hand at hosting some regional sporting events back in the day. The South Asian Games 1989 held in Islamabad enthralled many, partly because the great Muhammad Ali was the chief guest of the closing ceremony. However, unlike Saudi Arabia, Pakistan was not able to unleash a sustained period of economic growth. 

The year 2024 is ending on a hugely positive note for Saudi Arabia. The upcoming events showcase the Kingdom’s commitment to economic diversification, infrastructure development and the creation of long-term job opportunities. As the economic center of gravity shifts toward Asia, Saudi Arabia is strategically positioning itself as a key player in the region’s economic future. As the Kingdom continues its transformative journey, it provides a compelling model for nations seeking to capitalize on the evolving global economy through strengthening their economic and cultural ties across borders.

– The writer completed his doctorate in economics on a Fulbright scholarship.

X: @AqdasAfzal