A crisis of the collapse of oil prices, which hit the world economy since the summer of 2014, produced a state of the search for alternatives to the producing countries and spread a state of terror after prices tumbled to below $ 30 a barrel ,and countries have begun in earnest search for a diversity in their economies to come out of the rentier state that has dominated it for decades.
In this context, Saudi Arabia announced , a giant of the world’s oil and the largest producer in the Organization of the Petroleum Exporting Countries (OPEC) in the current April 25 , for a roadmap for its economy to begin a new era based on economic diversification and end the era of dependence on oil, entitled Saudi Arabia’s vision 2030 project aims an end to the Saudi economy’s dependence on oil as a principal source of revenue.
Saudi Arabia ‘ vision included , prepared by the Board of Economic Affairs and Development, headed by the Saudi deputy Crown Prince Mohammed bin Salman , 3 major divisions and they are the booming economy, active community, and the ambitious homeland.
Prince has commented on the economic structure of the Kingdom as it is living a “state of addiction to oil” disrupted the development of other sectors, and pointed at the conference held in Riyadh that “the kingdom run by King Abdul Aziz and his men without oil”
Here we will review the most important thing produced by “the Saudi vision” and dealt by the deputy Crown Prince Mohammed bin Salman Al-Saud ‘s statement and it is as the following:.
• KSA will work to transform the Saudi Public Investment Fund to sovereign fund with assets valued 2 trillion dollars to 2.5 trillion dollars, making it the “largest” sovereign funds globally.
• To discount part of the subscription in the Saudi Arabian Oil Company, known as “Aramco” It is the world’s largest company.
• Raise the proportion of non-oil exports from 16% to at least 50% of the total of non-oil GDP, and provides the order of the Kingdom in the Logistics Performance Index ranking of 49 to 25 globally and No. 1 regionally.
• Raise the proportion of direct foreign investments of gross domestic product from 3.8% to the global average of 5.7%
• Moving from place 25 in the Global Competitiveness Index to the first 10 centers .
• Regarding investment, the target is to raise the value of the assets of the Public Investment Fund of 600 billion to more than 7 trillion Saudi riyals, also a vision included to raise the proportion of local content in the oil and gas sector from 40% to 75%. The goal is to increase the size of the Saudi economy and move from 19th place to the first 15th rank in the world.
• Saudi Arabia ‘ vision aimed to raise the proportion of Saudis own of homes from 47% to about 52% by 2020.
• Raise the proportion of women’s participation in the labor market to 30%.
• Stimulate and support the contribution of small and medium enterprises in the GDP from 20% to 35%.
• Vision also included combat and reduce the unemployment rate from 11.6% to 7%.
• “Saudi Arabia vision” seeks to create a vibrant community, by increasing the average of life expectancy from 74 to 80 years, and upgrading social capital index ranking of 26.
• An increase in household spending in the KSA on the culture and social welfare from 2.9% to 6%, and increase the number of archaeological sites registered in UNESCO at least to be doubled.
• Raising the contribution of non-profit sector in the gross domestic product of less than 1% to 5%, and raise the proportion of household savings of their total income from 6% to 10%.
• On the level of religious tourism “the Saudi vision aimed to perform a major expansion of the Masjid al-Haram( the Sacred Mosque) to increase the capacity of the reception of pilgrims from 8 million to 30 million pilgrims.
• And towards the development of the government and government performance ” the Saudi vision” seeks to move from position 36 to the first 5 centers – in e -government index, and accessible from the center 80 to 20 place in Government Effectiveness Index, and increased government non – oil revenue of 163 billion to 1 trillion riyals annually.
• A vision included “transforming the assets of state land also to the investment fund for the development and solving problems of the cities.”
• Prince Mohammed bin Salman, confirmed that the king Salman bridge to be built to connect the Kingdom with Egypt would be “the largest land border crossing in the world,” and that it “will provide huge opportunities for investment and construction.”
• Investment geographic location will make the goods pass through Saudi Arabia with hundreds of billions. ”
• He pledged to open the kingdom to tourists of various nationalities, revealing that the Green Card project (Green Card) will enable the Arabs and Muslims live long in the KSA, so it would be a supporter for the investment.
• He added that the Kingdom “will establish a holding company for government industries, and will go on the market at the end of 2017″.
• In another gesture step, Prince Mohammed bin Salman said that the new tariff rates of electricity and water will be applied to the princes and wealthy, pointing out that the wealthy who would object to re-tariff support will face the Street.”
• Prince said that “the Ministry of Water failed to support the restructuring of the water,” and that the energy and water ‘s support should not go to the wealthy,” he said, adding that this support would be “to the owners of middle-income and below the average.”
A Saudi vision has developed an extensive work agenda to achieve it , and includes radical reforms in the public budget, and organizational changes . a plan includes to determine its economic goals for the next 15 years down to 2030.
As it is well known, that any plan is not without impediments or obstacles that may stand in its way, and according to economic analysts, the most important challenges that the plan to face ; it is the ability of the government ministries to withstand for the national transformation requirements that depends in its work on the thought of the private sector , especially as it relates to productivity, measurement, and work according to the strategic plans to reach to achieve specific objectives .
In conclusion we can say that the project of the Saudi Arabia ‘s vision 2030,” it is very ambitious, and establishes a solid ground towards comprehensive economic and social reform and based on to reduce dependence on oil as a principal source of revenues, not to mention the activation of the role of the various different sectors, and meet the challenges facing young people and citizens, and the establishment of the active role for Saudi women, and opening to the outside world, more ambitious targets and challenges are not easy, but Saudi Arabia is able to overcome such obstacles, due to the solid economy and big financial availability achieved by the oil revenues, and religious tourism and even before this project, the petrochemical industries still have prestige among World companies, here we have to say that the Saudi vision experience worthy of praise and support, and may be a distinct experience to be imitated by a number of Gulf and Arab countries in the future.
Rawabet Center for Research and Strategic Studies