We have already seen ambitious projects such as the expo Dubai 2020 in the UAE area. Today, instead, we will talk about a project set up by Saudi Arabia.
Vision 2030 was mainly developed by the Council of Economic Affairs and Development, headed by Deputy Crown Prince Mohammed bin Salman. The goal is to “harness the strengths God has given us” by improving its positions related to investments and strategies in the Islamic world.
The goals are several, and each will be met through specific strategies that aim to improve the economy in the long term. Here, we will offer a general overview of what this ambitious program provides, focusing on the economic perspective.
Vision 2030 in brief
Vision 2030 is based upon 3 main pillars: a vibrant society, a thriving economy, and an ambitious nation.
To create a vibrant and happy society, the Council has to do 7 big steps, which are:
- Double the number of Saudi cultural heritage sites recognized by UNESCO;
- Increase accommodation capacity to host Umra pilgrims and grow from the current 8 million to 30 million each year;
- Increase household spending on cultural and entertainment activities in the Kingdom from the current level of 2.9% to 6%;
- Raise the percentage of people who work out at least once a week, from 13% to 40%;
- Achieve the recognition of three Saudi cities among the best 100 cities in the world;
- Raise Saudi Arabia’s ranking from 26th to 10th in the Social Capital Index;
- Increase average life expectancy from 74 to 80 years.
The nation will be committed to ensure extremely high standards. Thus, it will need to be able to manage finances efficiently, with utmost transparency and the best tracking services. In order to do so, Saudi Arabia will:
- Increase the private sector contribution, from 40% to 65% of GDP;
- Move up from the current 25th position to the top 10 countries in the Global Competitiveness index;
- Increase foreign direct investment from 3.8% to 5.7% of GDP;
- Move from the current 19th position to the top 15 strongest economies in the world;
- Increase resources of Public Investment Fund, from 600 billion to over 7 trillion SAR;
- Increase the localization of oil and petrochemical industry from 40% to 75%;
- Increase female participation in the workforce from 22% to 30%;
- Lower unemployment rate from 11.6% to 7%;
- Increase the SMEs’ contribution to GDP from 20% to 35%;
- Increase non-oil exports’ share of GDP from 16% to 50%;
- Scale the Logistics Performance Index from the current 49th to 25th place
When talking about a thriving economy, we refer to building an efficient educational system. This must necessarily be aligned with the constantly changing needs of the market.
Students must learn the jobs of the future, improving and sharpening their soft and hard skills, while developing an entrepreneurial mind that will give them access to small and large businesses.
Vision 2030 wants to achieve this by using Saudi Arabia’s location, increasing investments on education and on the nation itself.
All the potential lies in young people, the greatest resources of this country. So, the goal will be to build a rewarding system that will recognize the best based on their skills, creating unique job opportunities to “unlock their potential.”
So, business environment will be improved by remodelling cities and creating areas suitable for studying and improving skills. Moreover, Vision 2030 foresee to diversify Saudi Arabia investment in the best promising sectors to further increase its resources for the future.
All of this is summarized in:
- Move up from the current 36th position in the E-Government Survey Index to rank in the top five;
- Increase non-oil government revenues from SAR 163 billion to SAR 1 trillion;
- Improve position in the Governments Effectiveness index from 80th to 20th;
- Increase the non-profit sector’s GDP contribution from 1% to 5%;
- Increase household savings from 6% to 10% of household income;
- Reach one million volunteers per year (from the current 11,000).
Otherwise, we invite you to use these useful links to official Saudi websites.