Saudi Arabia Vision 2030 is launched by His Highness Muhammad Bin Salman, Crown Price and Prime Minister of Saudi Arabia. The modernization of the Kingdom of Saudi Arabia launched by the Crown Prince Mohammed bin Salman (MBS) and detailed in his Vision 2030 plan addresses multiple national and regional challenges. Saudi Arabia is likely to be one of the world’s fastest-growing economies this year as sweeping pro-business reforms and a sharp rise in oil prices and production power recovery from a pandemic-induced recession in 2020-22. Gross domestic product is expected to expand by 7.6 percent, the fastest growth in almost a decade.
Despite higher prices for imported commodities, inflation will remain contained at 3 percent in 2023. Maintaining control of public spending despite higher oil proceeds will be important, but there is scope for more targeted social spending. Improvements in tax policy and revenue administration to raise more taxes from non-oil activities would help support fiscal consolidation.
The authorities’ continued implementation of Vision 2030 policies will help diversify and liberalize the economy and thus pave the way to more stable growth. Saudi Arabia is taking impressive steps to improve the business environment, attract foreign investment and create private-sector employment. These initiatives, combined with governance and labor market reform, have made it easier to do business (a business can be registered in just three minutes), increased the number of industrial facilities, and raised female participation in the labor force.
In addition to the removal of formal restrictions and legislation ensuring equality of employment, female labor force participation has benefited from transport subsidies of up to 80 percent for the cost of a taxi fare, employer incentives for hiring Saudi women, and childcare support. As a result, the proportion of Saudi women in work has doubled in the past four years to 33 percent, exceeding the 30 percent target set under the 2030 plan and the 27 percent average for the Middle East and North Africa.
Saudi Arabia’s economic outlook is strong. Maintaining the Kingdom’s long-term prosperity depends crucially on sustaining the reform momentum. The Vision aims to make the Saudi Arabia among the best countries in the world by the end of this decade. In order to translate the Vision into a reality, its pillars have been mapped into six national priorities, which represent the key focus sectors of government’s action in the coming years. Under this vision, the government is putting its maximum efforts on drawing a road map for the empowerment program for the rule of law and justice, a competitive economy, sustainable environment, integrated infrastructure, high-quality education system and world-class health facilities. Saudi Arabia is opening up its society and in the coming years, it will be a modern state like UAE and Qatar if it is compared with the regional countries.
Saudi Arabia Vision 2021 also includes, constructing and building new cities which will describe the future of Saudi Arabia through holistic and complementary perspectives. The rich high-quality experience that Saudi Arabia is going to provide to its residents and visitors is one the most critical advantages the country has to offer. The best part of the plan is that the main focus would be on human development. “Human capital is the real wealth of this country, before and after oil”, said His Highness Muhammad Bin Salman.
It is important to note that developments are being made in areas to improve justice, security, the economy, environment, living standards, housing, and education as well as health and infrastructure. The government is adopting national policies and strategies for innovation, creativity, excellence, reading, research and development. The government is also taking significant strides in developing the legislative and regulatory framework to attract foreign direct investment. Moreover, policies are being introduced to promote the green economy which will comply with the requirements for sustainability, protection of the environment and conservation of natural resources. Plans are underway to upgrade education and health services, modernize the infrastructure and qualify youths to easily enter the job market.
The Rulers of Saudi Arabia has prioritized building a knowledge-based economy by empowering the national workforce. Recently, they have launched a ten-year nationalization plan as part of the reforms, which aims to develop the skills of Saudis and fill senior-level positions with local talent. This is being done through a points system that ranks and rewards performance across key areas, including employing women, supporting education and training, and encouraging flexible working conditions.
The reforms recognizes that Saudi Arabia’s eminent global standing is because of what it has achieved in the short span of 40 years. Saudi Arabia is going to be one of the best places in the world to do the business. This emphasis on excellence and the best of everything has always been the cornerstone of reforms policy. The assurances on empowerment of women, protection of environment, and development of education and health sectors are also some of the distinct facets of the reforms.
The real estate development sector has a very important part to play in realizing the national agenda of the Saudi reforms that aims to increase the share of local people in the private sector to 5 percent, besides shifting 50 percent of the working force to private businesses. Some of the most ambitious construction projects are either in the planning stage or currently under way, are those related to ports, airports, roads and railways. The road network is also continuing to expand and improve.
The country is on a fast track to transitioning to a knowledge-based economy and reducing its reliance on the oil sector. Diversification is important to promote economic development, to create job opportunities and provide long term security stability. It is an enormous transformation that requires significant education and training interventions and resources. The reforms also provide other countries to invest in the country and get the benefits of the emerging economy.
The Government is progressing to deliver the national agenda, which seeks to develop and improve conditions in areas of justice, security, economy, environment, living standards, housing, education, health and infrastructure. There is no doubt that the government has made significant progress in developing the legislative and regulatory framework to attract investment and has introduced policies to promote the concept of green economy and comply with the principles of sustainability, protection of the environment and conservation of natural resources.
Saudi Arabia has a clear and comprehensive vision to diversify its economy and achieve an optimal balance between its various sectors to ensure sustainability and create new business opportunities. 95 percent of country’s GDP comes from oil sectors while remaining comes from non-oil sectors, which include religious tourism, aviation, hospitality, retail, logistics, and financial services. Country is creating new business opportunities and will attract new markets in the coming years. It has successfully created a roadmap for implementing the highest international standards and best practices, it has a unique business model that supports innovation-driven economic development and leverages its strategic location to serve as a bridge between markets in the East and West.
Saudi Arabia has also approved plans to upgrade and improve its educational and health services, modernize the infrastructure and qualify youths to easily enter the job market. The idea of these reforms is to enhance and develop Saudi Arabia as an international hub for the sustainable & knowledge innovation in industrial activities. There is no doubts that the reforms aims to make Saudi Arabia among the most advanced and modernized countries in the world.