The revolutionary blueprint of post-oil Saudi Arabia
The revolutionary leader and prince of Saudi Arabia, Mohammad bin Salman Al Saud, has unveiled his highly ambitious plans for the future of the Kingdom of Saudi Arabia: a kingdom that will no longer rely solely on oil for revenue and will be a world leading economic hub by 2030.
This ambitious, but achievable plan, showcased by Mohammad bin Salman Al Saud, shows us a motivated and determined leader, focused on achieving Performance Management targets. According to the prince, the country should change its strategy, in order to achieve its future goals.
The Saudi prince has obtained approval form King Abdulaziz Al Saud and the Saudi parliament, so that he can start implementing his vision for Saudi Arabia’s future.
First Pillar: Vibrant Society
Strategic Direction – Saudi Arabia’s status as the heart of the Arab and Islamic world
- To increase capacity, in order to welcome Umrah visitors from 8 million to 30 million every year.
- To more than double the number of Saudi heritage sites registered with UNESCO.
- To have three Saudi cities recognized in the top-ranked 100 cities in the world.
- To increase household spending on cultural and entertainment activities inside the Kingdom from the current level of 2.9% to 6%.
- To increase the ratio of individuals exercising at least once a week from 13% of population to 40%.
- To raise its spot from the 26th to the 10th in the Social Capital index.
- To increase the average life expectancy from 74 years to 80 years.
Second Pillar: A thriving economy
Strategic Direction – Saudi Arabia’s determination to become a global investment powerhouse
- To lower the rate of unemployment from 11.6% to 7%.
- To increase SME contribution to GDP from 20% to 35%.
- To increase women’s participation in the workforce from 22% to 30%.
- To move from our current position as the 19th largest economy in the world into the top 15.
- To increase the localization of oil and gas sectors from 40% to 75%.
- To increase the Public Investment Fund’s assets, from SAR 600 billion to over 7 trillion.
- To rise from our current 25th position into the top 10 countries in the Global Competitiveness Index.
- To increase foreign direct investment from 3.8% to the international level of 5.7% of GDP.
- To increase the private sector’s contribution from 40% to 65% of GDP.
- To raise global ranking in the Logistics Performance Index from being the 49th to the 25th and ensure that the Kingdom is a regional leader.
- To raise the share of non-oil exports in non-oil GDP from 16% to 50%.
Third Pillar: An ambitious nation
Strategic Direction – Transforming Saudi Arabia’s unique strategic location into a global investment hub, connecting three continents: Asia, Europe and Africa
- To increase non-oil government revenue from SAR 163 billion to SAR 1 Trillion.
- To raise the rank in the Government Effectiveness Index, from the 80th to the 20th.
- To raise in the E-Government Survey Index rank, from our current position of 36th, to be among the top five nations.
- To increase household savings from 6% to 10% of total household income.
- To raise the non-profit sector’s contribution to GDP from less than 1% to 5%.
- To rally one million volunteers per year (compared to 11,000 now).
Prince Mohammad bin Salman Al Saud also presented the programs which will help achieve the 2030 goals:
- The Government Restructuring Program
- The Strategic Directions Program
- The Fiscal Balance Program
- The Project Management Program
- The Regulations Review Program
- The Performance Measurement Program
- The Saudi Aramco Strategic Transformation Pprogram
- The Public Investment Fund Restructuring Program
- The Human Capital Program
- The National Transformation Program
- The Program for Strengthening Public Sector Governance
- The Privatization Program
- The Strategic Partnerships Program
After Saudi Arabia has registered diminished oil production rates, which nonetheless account for 45% of GDP and 85% of export earnings, the KSA Vision 2030 will prove to be an excellent strategy in order to deviate from the current strategic approach.
Furthermore, as the government has expressed increased interest for performance measurement, effective use of clear and specific objectives and action plans, this positions KSA as a best practice example among Middle Eastern countries. In order to achieve the desired goals, the Saudi government needs to focus on population engagement, which is facilitated through its high quality public services and transparency.
To support this, its bureaucracy needs to be at its highest level, accompanied by the support of the private sector.
The vision of Prince Mohammad bin Salman Al Saud could be an interesting turn of events for Saudis, enabling the country to change its future economic path.