Can industrial policy drive economic diversification? Early evidence from Saudi Arabia Jasmin ChakeriMuhammad Khudadad ChatthaDilan Yang May 21, 2026 This page in: English © 2026 The World Bank Group,

https://blogs.worldbank.org/en/developmenttalk/can-industrial-policy-drive-economic-diversification--early-evid Many resource-rich economies face the same structural challenge: how to build a diversified economy when commodity revenues have long dominated government spending and investment. Industrial policy has emerged as a common response — targeted interventions designed to foster new sectors and integrate domestic producers into global value chains. But does it work? And how can governments know whether their choices are having the intended effect? Saudi Arabia offers a rare opportunity to study this challenge in real time. © 2026 The World Bank Group,