Kingdom of Saudi Arabia
Vision 2030
Any developed economy that wants to remain dynamic and vibrant must be flexible and innovative to adapt to the ever-changing conditions of the global economy. Vision 2030 is Saudi Arabia's ambitious agenda, which will diversify and restructure the Kingdom's economy, improve the governance of Saudi resources, and improve quality of life for all Saudi citizens. This socio-economic roadmap, master-minded by Crown Prince Mohammed bin Salman Al Saud and approved by the Saudi government and King Salman bin Abdulaziz, is already under implementation.
In April 2016, the Saudi Cabinet, led by Custodian of the Two Holy Mosques King Salman bin Abdulaziz, approved the country's Vision 2030, an economic roadmap which will end the Kingdom's dependence on oil revenue.
The historic vision was developed by the Council of Economic and Development Affairs, which is chaired by Crown Prince Mohammed bin Salman. It includes a number of goals and reform strategies for the Kingdom's long-term economic success, including reductions in subsidies, the creation of a sovereign wealth fund, opening Saudi Aramco to private investment through a partial IPO, and reforms to several industries including tourism and defence.
"We are determined to reinforce and diversify the capabilities of our economy, turning our key strengths into enabling tools for a fully diversified future," said Prince Mohammed. "We are determined to build a thriving country in which all citizens can fulfill their dreams, hopes and ambitions."
The vision is built around three primary themes: a vibrant society, a thriving economy and an ambitious nation.
In order to achieve a vibrant society, Saudi Arabia will focus on its people and the Islamic faith. This will happen through a series of commitments, including:
• Increasing the number of Umrah visitors from 8 million to 30 million annually.
We have been given the privilege to serve the Two Holy Mosques, the pilgrims and all visitors to the blessed holy sites. In the last decade, the number of Umrah visitors entering the country from abroad has tripled, reaching 8 million people. This is a noble responsibility. It requires us to spare no effort in seeking to offer pilgrims with all they need so we fulfil our duty to provide good hospitality to our brothers and sisters. In this context, we have begun a third expansion to the Two Holy Mosques, as well as modernizing and increasing the capacities of our airports. We have launched the Makkah Metro project to complement the railroad and train projects that will serve visitors to the Holy Mosques and holy sites. We have reinforced the network of our transport system to facilitate access and help pilgrims perform their visits with greater ease and convenience. At the same time, we will enrich pilgrims' spiritual journeys and cultural experiences while in the Kingdom. We will establish more museums, prepare new tourist and historical sites and cultural venues, and improve the pilgrimage experience within the Kingdom.
By increasing the capacity and by improving the quality of the services offered to Umrah visitors, we will, by 2020, make it possible for over 15 million Muslims per year to perform Umrah and be completely satisfied with their pilgrimage experience. We will achieve this by improving visa application procedures which will smooth the visa process with the aim of full automation. We will also further integrate e-services into the pilgrims' journey, which will enrich the religious and cultural experience. Both the public and private sectors will play a crucial role in this project as we work to upgrade accommodation, improve hospitality and launch new services for pilgrims.
• Establishing the largest Islamic museum in the world.
We have always taken – and will continue to take – great pride in our heritage. Mohammad, the Last of Prophets, Peace Be Upon Him, was from Makkah, the birthplace of Islam. Medina is where the first Islamic society was born. We will build an Islamic museum in accordance with the highest global standards, equipped with the latest methods in collection, preservation, presentation and documentation. It will be a major landmark for our citizens and visitors, where they will learn about the history of Islam, enjoy interactive experiences and participate in cultural events. Using modern technology, visitors to the museum will take an immersive journey through the different ages of Islamic civilization, as well as its science, scholars and culture. It will also be an international hub for erudition and include a world-class library and research center.
• Doubling the number of Saudi heritage sites registered with UNESCO.
• Promoting the growth of cultural and entertainment opportunities within the Kingdom.
Vision 2030 is not a tactical quick-win for Saudi Arabia to boost its economy in the short-term; it goes beyond the question of oil. It is an ambitious long-term strategy that is set to bring about important lasting change to our country and a positive future for the population. Culture and entertainment are indispensable to a high quality of life. We shall acknowledge that the cultural opportunities currently available in the kingdom do not reflect the rising aspirations of our citizens and residents. To reflect this aspiration, government funds and partnerships with local and international investors will be harnessed to make land available for cultural and entertainment projects, and talented writers, authors and directors will be better supported. Ultimately, this too will also contribute to our economy and will result in the creation of many job opportunities. To ensure that the richness of Saudi history and culture is recognized, we aim to double the number of Saudi heritage sites registered with UNESCO - process has already begun with the recognition by UNESCO of ancient rock art in the Hail region. Most recently, the Kingdom has allocated around €0.9 billion to preserving its cultural heritage and is investing in tourism, aiming to increase spending by Saudis at home.
• Encouraging healthy lifestyles so that the number of citizens who exercise once a week increases from 13 to 40 percent.
A healthy nation needs a healthy population and so the Saudi government has committed to encouraging healthier lifestyles so that the number of citizens who exercise once a week increases from 13 to 40 percent, through widespread and regular participation in sports and athletic activities, working in partnership with the private sector to establish additional dedicated facilities and programs.
• Developing Saudi cities so that three are recognized in the 100 top-ranked cities in the world.
Our cities already enjoy high levels of security and development. Despite the current turmoil in the region and the wide expanse of our territories, our country and citizens are safe and secure. Our cities are among the safest in the world with annual crime rates that are less than 0.8 per 100,000 people, far below the international rate of 7.6. We will maintain our safety and security by supporting ongoing efforts to fight drugs abuse, as well as by adopting further measures to ensure traffic safety, reduce traffic accidents and minimize their tragic consequences. Our cities have grown significantly in recent decades; a growth which has been accompanied by the steady development of their infrastructure. To ensure we can continue to enhance the quality of life for all and meet the needs and requirements of our citizens, we will continue to ensure high quality services such as water, electricity, public transport and roads are properly provided. Open and landscaped areas will also be developed further, to meet the recreational needs of individuals and families.
In order to achieve a thriving economy, Saudi Arabia will diversify its economy and create dynamic job opportunities for its citizens. This will happen through commitments to education, entrepreneurship and innovation, including:
• Diversifying the Kingdom's economy through the ongoing privatization of state-owned assets, including establishing a sovereign wealth fund that will be financed through the partial IPO of Saudi Aramco.
The ongoing privatization of state-owned assets, including leading companies, property and other assets, will bring in new and more diverse revenues for the Saudi government. This will further enhance our financial resources and economic stability, which will be reinvested for long-term impact. We will develop further the sophistication of our investment vehicles, particularly after transferring the ownership of Aramco to the Public Investment Fund, which will become the largest sovereign wealth fund in the world. We will increase the efficiency of the fund's management and improve its return on investment, with the aim of diversifying our government resources and our economy. The Public Investment Fund will not compete with the private sector, but instead help unlock strategic sectors requiring intensive capital inputs. This will contribute towards developing entirely new economic sectors and establishing durable national corporations.
• Unlocking underdeveloped industries such as manufacturing, renewable energy and tourism.
We will support promising sectors and foster their success so that they become new pillars of our economy. In the manufacturing sector, we will work towards localizing renewable energy and industrial equipment sectors. In the tourism and leisure sectors, we will create attractions that are of the highest international standards, improve visa issuance procedures for visitors, and prepare and develop our historical and heritage sites. In technology, we will increase our investments in, and lead, the digital economy. In mining, we will furnish incentives for and benefit from the exploration of the Kingdom's mineral resources. At the same time as diversifying our economy, we will continue to localize the oil and gas sector. As well as creating a new city dedicated to energy, we will double our gas production, and construct a national gas distribution network. We will also make use of our global leadership and expertise in oil and petrochemicals to invest in the development of adjacent and supporting sectors.
• Modernising the curriculum and standards of Saudi educational institutions from childhood to higher learning.
We will close the gap between the outputs of higher education and the requirements of the job market. We will also help our students make careful career decisions, while at the same time training them and facilitating their transition between different educational pathways. In the year 2030, we aim to have at least five Saudi universities among the top 200 universities in international rankings. We shall help our students achieve results above international averages in global education indicators. To this end, we will prepare a modern curriculum focused on rigorous standards in literacy, numeracy, skills and character development. We will track progress and publish a sophisticated range of education outcomes, showing year-on-year improvements. We will work closely with the private sector to ensure higher education outcomes are in line with the requirements of job market. We will invest in strategic partnerships with apprenticeship providers, new skills councils from industry, and large private companies. We will also work towards developing the job specifications of every education field. Furthermore, we will build a centralized student database tracking students from early childhood through to K-12 and beyond into tertiary education (higher and vocational) in order to improve education planning, monitoring, evaluation, and outcomes. We will also expand vocational training in order to drive forward economic development. Our scholarship opportunities will be steered towards prestigious international universities and be awarded in the fields that serve our national priorities. We will also focus on innovation in advanced technologies and entrepreneurship.
• Refocusing on small and medium-sized enterprises (SMEs) by encouraging financial assistance. Increasing the contribution of SMEs to GDP from 20 to 35 percent by 2030.
To make the country less dependent on its oil reserves and secure a thriving economy, Saudi Arabia will diversify to create more dynamic job opportunities for its citizens. This will happen through commitments to entrepreneurship, innovation and education. Concretely we are striving to lower the rate of unemployment from 11.6% to 7%; increase SME contribution to GDP from 20% to 35%, and increase women's participation in the workforce from 22% to 30%. By privatising state-owned assets such as Saudi Aramco and also refocusing on small and medium-sized enterprises through enhanced financial assistance, the kingdom will unlock underdeveloped industries such as manufacturing, renewable energy and tourism and make our economy more robust. Furthermore, by modernising the curriculum and standards of Saudi educational institutions, the aim is to propel at least five Saudi universities into the top 200 in the world, delivering a well-equipped workforce. Beyond these reforms, achieving our desired rate of economic growth will require an environment that attracts the necessary skills and capabilities from beyond our national borders. To attract and retain the finest foreign minds, the government plans to improve living and working conditions for non-Saudis by extending their ability to own property in certain areas, improving the quality of life, permitting the establishment of more private schools and adopting an effective and simple system for issuing visas and residence permits.
Opening up the kingdom in this way will contribute to economic development and attract foreign investors who can be confident in the resilience and potential of our national economy. By easing restrictions on ownership and foreign investment and creating a smoother flow of goods, people and capital, we aim to increase foreign direct investment from 3.8% to the international level of 5.7% of GDP. This is of course a great opportunity for European entrepreneurs eager to benefit from Saudi Arabia's potential as a strategic location that links Europe to Asia and Africa.
In order to be an ambitious nation, Saudi Arabia will focus on accountability, transparency and effectiveness in its governing strategy. Sustainable success can only be achieved with solid foundations. In order to realize this potential, the Kingdom will:
• Boost transparency by expanding online services and improving governance standards.
In order to sharpen the ambition of our nation, Saudi Arabia will focus on accountability, transparency and effectiveness in its governing strategy. We shall have zero tolerance for all levels of corruption, whether administrative or financial. We will adopt leading international standards and administrative practices, helping us reach the highest levels of transparency and governance in all sectors. We will set and uphold high standards of accountability. Our goals, plans and performance indicators will be published so that progress and delivery can be publicly monitored. Transparency will be boosted and delays reduced by expanding online services and improving their governance standards, with the aim of becoming a global leader in e-government.
• Establish the King Salman Program for Human Capital Development in order to train more than 500,000 government employees in best practices.
We have yet to identify and put into effect the best practices that would ensure that public sector employees have the right skills for the future. However, by 2020, we aim to have trained, through distance learning, 500,000 government employees. All ministries and government institutions will be required to adopt best practices in human capital development. We will continue to hire individuals according to merit and work towards building a broad talent base, so they may become leaders of the future. The King Salman Program for Human Capital Development will establish HR centers of excellence in every government agency, and provide training. We will work to raise the productivity of employees to the highest levels possible, by implementing proper performance management standards, providing continuous training for professional development, and sharing knowledge. We will develop targeted policies to identify and empower future leaders, and will furnish a stimulating environment that provides equal opportunities and rewards for excellence.
• Bolster the non-profit sector through increased efficiency and impact.
We aspire to have businesses that contribute to developing our society and our country, not be geared solely towards generating profits. We expect our companies to observe their social responsibilities and contribute to creating a sustainable economy, including by creating the stimulating opportunities for young men and women that can help them build their professional careers. We will encourage the businesses that follow through on this commitment to participate in our country and to address national challenges.
- Being Responsible to Society
The values of giving, compassion, cooperation and empathy are firmly entrenched in our society. We have already played an influential role in providing social aid locally, regionally and globally. In the future, we will formalize and strengthen the organization of our social and compassionate work so that our efforts have the maximum results and impact. Today, we have fewer than 1,000 non-profit foundations and associations. In order to increase the resilience and impact of this sector, we will continue to develop regulations necessary to empower non-profit organizations. We will review our regulations to encourage endowments to sustainably fund the sector and to encourage corporations and high net worth families to establish non-profit organizations. Government support will be directed to the programs with highest social impact and we will support training workers to encourage volunteering and careers in the non-profit sector. Enabling non-profit organizations to attract the best talents in order to ensure best management practices and the transfer of knowledge, which will strengthen these institutions over the longterm. This will ensure that the non-profit sector plays an enhanced and more efficient role in critical sectors such as health care, education, housing, research, and cultural and social programs.
The Vision 2030 plan is the first step towards achieving Saudi Arabia's economic aspirations and transforming the lives of citizens. But it's an important departure to overhaul its all-oil economic model and open the kingdom to bolder investment flows and international cooperation.
Our commitment to achieving the goals of these pivotal programs and our collective contribution shall be the first step towards achieving Saudi Arabia's vision for 2030. We will continue to launch new programs in the upcoming years as required, and we will continuously review and assess our performance in achieving this vision
For more details on Vision 2030, please visit the official website www.vision2030.gov.sa
