Saudi Arabia and Its Vision 2030

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Saudi Arabia is implementing its long-term policy known as Vision 2030 in order to increase the country’s strengths and capabilities. The plan is to diversify the economic capabilities, create new job opportunities for the citizens, and improve the quality of government services. It is based on the strategic geographical position of the country and its investment capabilities. In short, the development policy of Saudi Arabia aims at making the country more stable and independent from external markets and bringing more prosperity into the lives of its people in all the possible aspects.

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The first improvements in Saudi Arabia are connected to the strengthening of the nation brand. It includes such aspects as goods and services, investment, and society and forms the perception of Saudi Arabia by the other countries. According to Brand Finance’s annual report, the indicator of the value of the country’s brand reached 19%, which means the increase by $93 billion only for the year 2017 (“Vision 2030 Boosts Saudi Arabia’s Nation”, 2017, para.1).

These results would encourage inward investment and attract entrepreneurs as well as tourists from all over the world. As can be seen from the values, the policy of diversifying the Saudi economy, improving the social environment, developing tourism is highly beneficial for the image of the country abroad. Therefore, the implementation of Vision 2030 contributes to the creation of a better and brighter future for Saudi Arabia and its citizens.

The further development of Saudi Arabia based on the national brand hexagon model includes three fundamental pillars. They cover all the spheres of life, including people, tourism, exports, culture and heritage, investment and immigration, and governance. The first pillar of its Vision is the status of the country as a centre of the Arab and Islamic worlds. The religious aspect of Saudi Arabia is reflected in the idea to keep and accumulate the welfare provided by Allah the Almighty.

The second pillar of the Vision represents the intention of Saudi Arabia to become a global investment leader through the stimulation of its economy by using the investment capabilities and diversifying the sources of revenue of the country. And, finally, the third pillar relates to the creation of strong connections with Asia, Europe, and Africa.

Saudi Arabia, as a result, would become the centre of international trade (“Economic Data & Reports”, 2016). The implementation of these three steps or pillars is based on the numerous natural resources and valuable minerals of Saudi Arabia. It aims at providing a better future for its younger generations.

The implementation of Vision 2030 attracts numerous stakeholders and investors from all over the world. Foreign direct investment has amounted to 3.8% so far, and the plan is to increase this rate to 5.7% GDP by 2030 (“Saudi Vision 2030”, 2019, p.52). The realization of the public investment fund program is intended to reach this goal.

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The expected growth and diversity of economic activities in the strategic sectors of Saudi Arabia lead to the growth of foreign investments as well. Therefore, the principal objectives of the investment fund program are the growth of the public investment fund assets, entering the new markets, and exploring the diverse economic sectors. For this purpose, there is a need for localization of edge technologies and knowledge, and this step is included in the program as well.

The realization of the public investment fund program will also lead to the improvement of socio-economic conditions. For example, one of the intended consequences of program implementation is the creation of 20,000 direct jobs for Saudi citizens (“Economic Data & Reports”, 2016). However, for the success of the program, there is a need to attract more international investors. By 2030, the total return of shareholders would reach 4-5%.

By 2018, according to Reuters, foreign investment in Saudi Arabia amounted to $3.5 billion (“Foreign investment in Saudi Arabia”, 2018). In this regard, it can be concluded that the implementation of the public investment fund program, together with the constant growth of economic indicators will result in better profit for the stakeholders and investors, and the creation of new jobs for the Saudi citizens by 2030.

There are several reforms that are to be carried out over the next decade. Most of them, however, relate to the social and economic spheres of life. One of the main economic programs is the strategic reformation of Saudi Aramco in order to make it a leader in several sectors, not only in oil production.

Another measure taken for the country’s economic prosperity includes the assessment of economic impact from capital expenditures for the consequent diversifying of revenues from various businesses under the fiscal balance program. As for social reforms, they are mostly intended to increase the government’s support for the development of the people’s talents and the civil service efficiency under the human capital program (“Economic Data & Reports”, 2016).

Meanwhile, the other programs complementing the already existing ones are being created in order to achieve sustainable development of Saudi Arabia for the period till the year 2030. The main focus remains on providing more opportunities to the country’s citizens and diversifying the Saudi economy by entering the new markets.

The recent changes in the economic policy of Saudi Arabia led to the emergence of numerous opportunities and, thereby, the increase in its attractiveness for foreign investors and business people. Alper Celen was one of the first people who entered the Saudi market even before the beginning of its global development, and his start-up has paid off. Now he is a founding partner of the holding company Enhance and a co-founder and co-CEO of the online platform for gifts joi (Megha, 2019).

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He is one of the people who benefited from entering the Saudi market and finding Saudi investors for his projects. Despite the difficulties of being foreign pioneers on the Saudi market, he is content to have made this decision in the past and believes it to be extremely beneficial for his business.

Nowadays, the situation for foreign entrepreneurs is becoming better, and it is easier for them to enter the Saudi market due to the implementation of the Vision 2030 by the government. In addition to the principal development programs, there is a row of government initiatives that facilitate the process. They include such measures as licensing opportunities for new businesses, funding platforms for small and medium-sized enterprises, and many others.

Monshaat, Saudi general authority, works to eliminate administrative, regulatory, informational, and other obstacles limiting the access to the market. Its support also includes the provision of various services, such as training and mentorship (Megha, 2019). Therefore, the programs of Vision 2030, together with the additional government initiatives, create a better space for new entrepreneurs on the Saudi market.

References

Economic Data & Reports. (2016). U.S. Embassy & Consulates in Saudi Arabia. Web.

Foreign investment in Saudi Arabia more than doubled in 2018: minister. (2018). Reuters. Web.

Megha, M. (2019). Why Saudi Arabia is being increasingly seen as the place to be to start a business in the Middle East. Entrepreneur. Web.

Saudi Vision 2030. (2019). Vision 2030. Web.

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Vision 2030 Boosts Saudi Arabia’s Nation Brand Valuation. (2017). CIC – Saudi Arabia. Web.

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BusinessEssay. 2022. "Saudi Arabia and Its Vision 2030." November 26, 2022. https://business-essay.com/saudi-arabia-and-its-vision-2030/.

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