Editor's note: Thomas W. Pauken II is the author of "U.S. vs China: From Trade War to Reciprocal Deal," a consultant on Asia-Pacific affairs and a geopolitical commentator. The article reflects the author's opinions and not necessarily the views of CGTN.

The Saudi Arabian government hosted the 6th annual Future Investment Initiative (FII) in Riyadh on October 25-27, which came with much fanfare. Senior executives from major Wall Street firms, such as Goldman Sachs, Blackstone, Bridgewater Associates, Boeing and Franklin Templeton, were in attendance.

Saudi Arabia is the world leading oil exporter, and fossil fuel prices are surging much higher this year. Nonetheless, the Saudi government believes it must diversify its domestic economy and open up more to the world. Saudi Arabia deserves praise and encouragement for taking such actions.

The flagship FII forum demonstrates that the country, the largest economy in terms of gross domestic product (GDP) in the Arab world, has begun to bear fruit with its efforts to lure in more business deals with foreign-based investors and companies. 

Saudi Crown Prince Mohammed bin Salman (MBS) also pledged deeper support for the nation's Vision 2030 plan that aims to boost inbound foreign direct investment (FDI) with an ambitious target to score U.S. $100 billion a year of FDI, which would equate to nearly 6 percent of its GDP by 2030.

Meanwhile, this year's FII, dubbed "Davos in the Desert," has sparked more news coverage from the international media and Saudi Arabia has more good reasons to be cheerful. According to data from the Saudi General Authority for Statistics, the country is on track for an annual 7.6 percent growth rate in GDP this year.

Opening up with business in mind

Despite rising diplomatic tensions between Riyadh and Washington, U.S.-based companies are eyeing greater opportunities in Saudi Arabia.

"For the most part, I do not see U.S. companies actively avoiding Saudi Arabia due to recent political tensions," Adel Hamaizia, managing director at Highbridge Advisory and visiting fellow at Harvard University, is quoted in media reports as saying.

"U.S. companies will be an important partner to Saudi's investment and growth plans, in traditional sectors, but also in 'newer' fields including tourism, entertainment, EV production, technology and a nascent local defense industry," added Hamaizia.

Some Middle East countries stand poised for a brighter economy this year and next, since the region holds an abundance of natural resources while sitting on huge reserves of oil and gas.

The United Kingdom, European Union member states, the U.S. and much of the rest of the world are confronting looming energy shortages; however Saudi Arabia can take advantage of its stronger economic position on the world stage.

But it's intriguing that Saudi Arabia would endorse the Vision 2030 that favors a transition away from fossil fuels for its long-term outlook. Nevertheless, the government is recognizing the geopolitical and global business trends that signal the exploitation and use of fossil fuels will become less attractive for energy consumers worldwide in the decades to come.

Therefore, the Saudi government has set up a sovereign wealth fund, the Public Investment Fund with plans to deliver on the crown prince's diversification pledges by tapping into oil revenues generated by Saudi Aramco.

The oil giant intends to pour more funding into investments for developing and upgrading more green-tech devices, as well as propping up hydrogen energy projects by launching a U.S. $1.5 billion global sustainability fund.

Additionally, Riyadh is showing it can think in a very creative manner.

Betting huge stakes on NEOM

MBS has introduced other bold visionary plans for his homeland. He supports an urban mega-project, known as NEOM, which is expected to emerge as a massive hi-tech economic zone on the Red Sea. It will be divided into three parts: The Line, Oxagon and Trojena.

According to Oil Price, The Line will be built as a zero-carbon city by eliminating carbon-intensive infrastructure, such as cars and roads. It will operate on 100 percent renewable energy. The Line will be only 200 meters wide, but 170 kilometers long and 500 meters high. The end-to-end travel via a high-speed rail will take 20 minutes. It's planned to accommodate 9 million people.

The Oxagon section would host industries and innovation, including a hydrogen plant, while Trojena is expected to offer a year-round outdoor skiing and adventure sports destination to be completed in 2026, Saudi Arabia says.

This month, NEOM named its first hotel partner for its planned mountain tourism destination Trojena. NEOM hopes to welcome more than five million visitors by 2030.

NEOM sounds like a science-fiction fantasy but it's for real. Nonetheless, the project is expected to come with a hefty price tag: construction costs are estimated at U.S. $500 billion.

Getting help from outside

Saudi Arabia is embarking on ambitious and visionary national planning. Some of the government's ideas will succeed while others may not be easily realized but it shows that Riyadh is not afraid to make mistakes.

By embracing a more risk-taking culture, this can attract more inbound FDI. Foreign-born investors from the West prefer to conduct business in countries that they feel are opening up since they can find bigger opportunities there.

The Saudi Arabian government has long been a very traditional and closed society but in recent years MBS has helped his nation appear friendlier to the outside world. This explains why this year's Future Investment Initiative summit was more successful than anticipated.

Saudi Arabia is promoting more cross-border trade and investments with countries across the globe and that helps Riyadh with its renewed efforts to overcome the cross-cultural misunderstandings that had hurt its image abroad for so long.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on Twitter to discover the latest commentaries in the CGTN Opinion Section.)