Saudi Arabia accelerates ahead
Vision 2030 is the catalyst for socioeconomic change
As comprehensive and bold as it is ambitious, Saudi Arabia’s Vision 2030 strategic development blueprint is building on the kingdom’s strengths and capabilities, including vast wealth of non-oil resources and human talent.
Since its launch in 2016, Vision 2030 has seen the public and private sectors strive to transform the energy-rich country into a global investment powerhouse by stimulating the economy and diversifying revenues away from black gold through a series of measures and fundamental changes. “Our Vision is a strong, thriving, and stable Saudi Arabia that provides opportunity for all,” states Crown Prince and Chairman of the Council of Economic and Development Affairs, Mohammad bin Salman bin Abdulaziz Al-saud. “We are determined to reinforce the capabilities of our economy, turning key strengths into enabling tools for a fully diversified future. As such, we will transform Saudi Arabian Oil Company (Aramco) from an oil producing company into a global industrial conglomerate [hence its recently successful huge Initial Public Offering (IPO)]. We will transform the Public Investment Fund (PIF) into the world’s largest sovereign wealth fund. We will encourage our major corporations to expand across borders and take their rightful place in global markets.”
Investment taps open as flood of FDI flows into the kingdom
Billions of dollars of foreign direct investment (FDI) has gushed into the kingdom over the past few years, with the drive for economic liberalization embraced by key government entities like the Saudi Arabian General Investment Authority (SAGIA). While emerging economic sectors like tourism, and leisure and entertainment grow at pace, the kingdom’s natural resources and enviable position at continental crossroads remain a powerful magnet for major FDI, as clearly illustrated by the $2 billion of new petrochemical investment deals signed by SAGIA in November 2019. Every day, several new foreign investment projects are granted licenses by SAGIA, with such applications in 2019 up more than 70 percent year-on-year.
Spearheading efforts to improve the business climate in the capital and surrounding region, the Riyadh Chamber of Commerce (RCC) helps acquaint foreign investors with local laws and regulations, and maintain commercial and investment relationships with national firms and institutions. The chamber also contributes to the state strategy of Saudization, as well as the transfer of technology and knowledge to national hands.
“Vision 2030 lays the essential groundwork for diversifying sources of income, enhancing investment conditions, job creation, supporting national industry, and assisting with the logistics for private investment related events and activities,” explains RCC chairman, Ajlan Bin Abdul Aziz Al Ajlan. The senior executive highlights the enormity of the National Transformation Program (NTP), which comprises nearly 550 initiatives and a huge budget of about $72 billion for 2016-2020. Of these initiatives, more than 120 are closely related to the private sector, representing 23 percent of the total. The overall budget allocated to the initiatives related to the private sector amount to $35 billion, or 49 percent of the program’s total spend.
“The RCC has had many initiatives to back the move to privatization due to our firm conviction of the private sector’s leverage and ability to upgrade the service level in various projects,” Al Ajlan adds. “We are keen to enhance the role of the business sector, striving to assist it through the sectorial committees of the RCC. I extend a big welcome to business people and investors in all countries, and invite them to visit Saudi Arabia to acclimatize to the reality of economic development in all sectors.”
New arrivals will look to follow the example of the El Ajou Group Trading Company, the trading arm of the prestigious Abdul Ghani El Ajou & Sons Holding Co. With its parent among the top 100 firms in the kingdom, the company has become a leading provider of office automation, including document imaging and printing solutions, space management and office furniture solutions. “The education sector is really growing, with many new universities planned. Our integrated business solutions strategic business unit is very engaged with the sector,” says Maher A. El-ajou, Vice Chairman, Abdul Ghani El Ajou & Sons Holding Co.