Amna Puri-Mirza
Research Expert covering the Middle East
Saudi Arabia's Vision 2030
In 2016, the Saudi Government launched Saudi Vision 2030, a program that aims to reform the Kingdom's society, culture, and more so its economic outlook. It was initiated by Saudi Arabia’s ruler Crown Prince Muhammad bin Salman to establish strategic policies to ensure a prosperous future of the country. The Council of Economic and Development Affairs (CEDA) in Saudi Arabia overlooks and tracks the progress of the program. The leading goal of Saudi Vision 2030 is the reduction of the state's economic dependency on fossil fuels and diversifying the income portfolio.
Therefore, the Saudi government launched policies that promote other industries to become leading economic drivers. The Saudi government wants to promote more religious tourism and casual tourism in the country by building more touristic infrastructure and investing in the leisure entertainment segment. Furthermore, the Saudi government has initiated programs to encourage more foreign direct investments and the building of modern cities and research hubs, to hopefully entice technology companies to settle in Saudi Arabia.
New economic outlook for Saudi Arabia
Currently, the oil sector generates 1.6 trillion Saudi riyals of Saudi Arabia's GDP, which is almost 40 percent of the total GDP. The share of GDP generated from non-oil revenue is currently 16 percent, according to the government’s vision this should increase to 50 percent by 2030.Therefore, the Saudi government launched policies that promote other industries to become leading economic drivers. The Saudi government wants to promote more religious tourism and casual tourism in the country by building more touristic infrastructure and investing in the leisure entertainment segment. Furthermore, the Saudi government has initiated programs to encourage more foreign direct investments and the building of modern cities and research hubs, to hopefully entice technology companies to settle in Saudi Arabia.
Social reforms
All political and economic strategies for Saudi Arabia will have an impact on Saudi society. The long-term goal is for Saudi citizens to further participate in the private economic sector and not depend on jobs in the public sector or the Saudi welfare system. The social reforms aim to increase the number of Saudi citizens in the private sector workforce and decrease the dependency on foreign workers. In regards to the economic participation rate of women in Saudi Arabia, this rate has more than doubled since 2017. Women have not only been encouraged to participate in the workforce but also in their public life, with women now allowed to drive and travel independently.
