Saudi Vision 2030

Vision 2030 is one of the most constructive projects of KSA, that is reshaping the future of the country.  It comes with incredible number of opportunities for the country with a goal to evolve Saudi’s economy by year 2030 without relying on oil for sustainable growth. Vision 2030 mainly highlighted the key areas like promoting tourism, entertainment, and technology while cultivating a hub for production across various industries. With half of the journey completed, it has opened the doors for foreign investors, established major projects to promote innovation, invested in modern infrastructure, and improved cultural development. This initiative has not just flourished the economy but also elevated KSA’s standing on the global stage. In this article we will further explore about Saudi Vision 2030, its major goals, achievements so far and the challenges that comes along.

Understanding the Saudi Vision 2030

KSA primarily relied on oil reservoirs but over time the country recognized it was falling behind many nations in innovation, education, and development. Leading them to intensify their efforts toward advancements for a future that is competitive with other progressing countries. Therefore, Saudi Arabia launched “Vision 2030” in April 2016 under the stewardship of Crown Prince Mohammed bin Salman (MBS). The goal was to attract foreign money along with empowering citizens and local businesses through quality education, innovation, and contemporary solutions. Vision 2030, depends upon three foundational pillars mainly which are as follows:

1. A Vibrant Society
2. A Thriving Economy
3. An Ambitious Nation

Each Pillar comes with its own specific objectives crafted to give a roadmap to Saudi Arabia’s transformation into a more diversified and resilient economy while improving the quality of life for its citizens.

A Vibrant Society, the First Pillar

For a better development of nation, a vibrant society is mandatory for national stability. A vibrant society pillar comes with a goal to enhance the cultural, recreational, and social environment to support individual fulfillment and community cohesion. The key areas it targets include:

1.     Cultural Development

For a flourishing society, the encouragement of arts, cultures and heritage is crucial. Which is why Saudi Arabia is widely promoting cultural aspects like lifting bans on cinemas after 35 years, hosting international exhibitions, concerts, festivals and establishing General Entertainment Authority (GEA) to oversee and promote entertainment initiatives. KSA aims to uplift three of its top cities to rank them among the top 100 globally in terms of livability.

2.     Tourism and Heritage

Tourism is another essential area that could serve as a major part in economic advancement. Hence, KSA is highly emphasizing on it by opening tourist visas to attract non-Muslim visitors for the first time ever. They have invested highly in the Red Sea project making it luxury tourist destination and further restored and promoted UNESCO World Heritage sites like AlUla. Likewise, the entertainments events across the region have also gained wide popularity among global visitors and investors.

3.     Health and Sports

A healthy nation leads to healthy growth. KSA highly supports physical activity to have a more active nation by 2030. The goal is to increase the percentage of people exercising at least once a week from 13% to 40%. To achieve and promote that Kingdom is working towards sports. KSA has recently hosted major events like Formula E Championship, boxing matches, and the Dakar Rally. Moreover, women’s participation in sports, which was once considered unethical, has now been encouraged, leading to broader societal change.

Thriving Economy, the Second Pillar

To thrive the Saudi Economy at its best, KSA is progressively working on economic diversification,

1.     Economic Diversification

The foremost goal of Vision 2030 is economic evolution and improvement with reduced dependence on oil reservoirs for better growth. Their goal is to generate non-oil government revenue from SAR 163 billion to SAR 1 trillion. For that reason, KSA is heavily investing in:

• Mining: Finding an estimated $1.3 trillion worth of non-used mineral resources.
• Renewable Energy: Developing one of the world’s largest solar farms and putting money in wind energy projects.
• Logistics and Transportation: Creating ports, railways, and airports to transform Saudi Arabia into a global logistics hub.
• Manufacturing: Encouraging local production in sectors such as military and pharmaceuticals.

2.     Private Sector Empowerment

Saudi Vision 2030 had motivated the growth of Private sector by launching initiatives like National Privatization Program to ease the transferring of public assets ownership to private sectors. They have also simplified business regulations to gain foreign direct investment (FDI) and encourage Startups and SMEs through funding programs and incubators. By 2030, the private sector’s contribution to GDP is aimed to get a high rise from 40% to 65%.

3.     The Public Investment Fund (PIF)

PIF is the major supporter of Vision 2030. Its assets have grown progressively with the investments in industries such as technology, real estate, and infrastructure, both domestically and globally. It is expected that PIF will become the world’s largest sovereign wealth fund, with assets reaching $2 trillion by 2030.

An Ambitious Nation, the Third Pillar

Without a motivated and ambitious nation, economic progression is just an illusion. To achieve the best outcomes of Vision Initiative a high emphasis is put on governance and citizen empowerment.

1.     Government Efficiency

The government has launched various platforms like Absher to streamline government services and to uplift transparency through initiatives such as the National Anti-Corruption Commission (Nazaha). These measures are fruitful in creating a productive and accountable government.

2.     Women Empowerment

There was a time when women taking part in activities was regarded as dishonorable. Now however with vision 2030 the country has modernized its practices and women empowerment is one of its greatest shifts. In the present times, women can drive, travel and work without any hurdle. Women now stress freely serve in diplomatic roles and senior government positions. This women participation is further anticipated to rise from 22% to 30% by 2030.

3.     Citizen Engagement

Vision 2030 is promoting citizen activity in various fields by offering them volunteerism and non-profit work. Volunteers are likely to expand from 11,000 to 1 million and raise the non-profit sector’s contribution to GDP. Likewise, Saudization has also reduced the unemployment rate in the country by making it obligatory for companies to hire a certain percentage of Saudi Nationals.

Progress and Achievements

Vision 2030 is not just an initiative but a commitment to economic prosperity and wealth generation. Since its start, it has attained significant milestones:

• Non-Oil profits have raised over 50%
• Women participation in professional activities surpassed 36%
• Foreign direct investment reached $19.3 billion in 2022.
• The Saudi Green Initiative has helped to combat climate change
• Many international events like the G20 Summit in Riyadh in 2020 boosted global engagement.

These accomplishments reflect the commitment and gain of Saudi Arabia’s reforms.

Challenges to Vision 2030

Despite of the benefits that comes with vision 2030, there comes several complexities that comes in the way of vision goals, such as:

• Economic Dependence on Oil that is still there, oil price fluctuations impact the financial stability
• Resistance from the conservative society to adopt the latest changes i.e. women empowerment, international events etc.
• Conflicts with neighboring countries like Yemen may risk the stability of Vision 2030
• Executing large-scale reforms and mega-projects requires overcoming technical, financial and operational challenges

Why SS&CO?

Saudi Arabia is stepping boldly onto the global stage, taking a firm stance to attract foreign investment. With SSCO KSA accounting and taxation services businesses enjoy premium advantages of vision without being stressing about the compliance issues. We align their goals with the goals of vision 2030 to make them stand out. From tax incentives to priority access to lucrative government contracts, global giants like GE, Unilever, PepsiCo, and Siemens have already made the move to Riyadh. If your business wants a share of this transformative momentum, SS&CO is your gateway. Our seasoned legal experts know the Gulf inside out — we’ll set you up swiftly and strategically, putting you at the forefront of Saudi Arabia’s Vision 2030.