Arab News, Sat, Apr 27, 2024 | Shawwal 18, 1445
Eight years since its launch, Saudi Vision 2030 is already well ahead of schedule
Saudi Arabia:
Saudi Arabia’s transformation has involved many authors: The government, Saudi
citizens, the private sector, and international partners. Their combined efforts
have meant that by 2023 — the Vision 2030 midpoint — the plan was already ahead
of schedule.
Eight years since its launch, the social reform and economic diversification
blueprint’s promise is quickly being realized, with 87 percent of its 1,064
initiatives deemed completed or on track.
At its core, Vision 2030 is built upon three pillars: Building “a vibrant
society,” “a thriving economy,” and “an ambitious nation,” rolled out with a
phased approach, allowing the Kingdom to adapt, evolve, and become more agile.
As Saudi Arabia approaches the end of phase two — and the start of the 2025
implementation phase — the economic strategy, which was not without its doubters
early on, is no longer a mere idea but a genuine transformation.
By the end of 2023, some 197 of Vision 2030’s 243 key performance indicators had
been fully achieved. Of those, 176 exceeded their targets.
A similar trend is evident across various socio-economic domains, prompting the
nation to reconsider and set higher ambitions and targets for 2030.
A
technicolor economy
Launching the economic diversification plan in 2016, Crown Prince Mohammed bin
Salman vowed to improve the Kingdom’s business environment, allowing the economy
to flourish and drive employment opportunities for citizens and long-term
prosperity for the nation.
From increasing foreign direct investments, growing the number of small and
medium-sized enterprises and opening up new streams in fields like tourism and
entertainment, the nation documented a record contribution from non-oil
earnings.
By the end of 2023, revenues surpassed $121.8 billion and contributed 50 percent
to the real gross domestic product.
The Kingdom’s non-oil GDP amounted to over $503.6 billion, soaring past the
baseline of over $404.9 billion and edging close to the target goal of $515.6
billion.
This comes as Saudi Arabia has implemented a series of economic and regulatory
undertakings to stimulate private sector growth and attract foreign investment.
These reforms include easing restrictions on foreign ownership in various
sectors, streamlining business regulations and privatizing state-owned
enterprises.
These ongoing shifts and Riyadh’s strategic location at the crossroads of three
continents made it a valuable investment destination for global businesses. In
2023, more than 180 companies obtained permits to open regional offices in the
Saudi capital.
Concurrently, the private sector’s contribution to the total GDP amounted to 45
percent, marking a notable increase from the baseline of 40.3 percent and moving
closer to the Vision’s target of 65 percent.
Echoing this notion, foreign direct investment showed notable growth,
contributing 2.4 percent to the country’s GDP.
The Kingdom’s sovereign wealth entity, the Public Investment Fund, had assets
under management of over $749 billion in 2023, surpassing the annual target of
approximately $720 billion.
These successes prompted the Kingdom to rank first in the Middle East and North
Africa region for venture capital investment in 2023, capturing 52 percent of
the total capital deployed in the area with a value of $1.4 billion.
Furthermore, the economic participation and opportunities sub-index has
increased to 0.637 from the baseline of 0.33, surpassing the annual target of
0.592.
An
equitable workforce
Saudi Arabia achieved its lowest unemployment rate of 7.7 percent in 2023,
compared to 12.3 percent in 2016, surpassing the 2023 target of 8 percent and
nearing the Vision 2030 mark of 7 percent.
Yet, the nation’s most notable employment achievement remains characterized by a
previously unsung section of its labor force, with female participation now
standing at an all-time high of 35.5 percent, surpassing the 2030 goal.
Saudi Arabia has seen a growing number of women taking on leadership roles in
various sectors, including government, business, academia, and media.
This success was further attributed to a government that has actively worked to
expand job opportunities for women across a wide range of sectors, including
healthcare, education, and finance as well as technology and hospitality.
Furthermore, Vision 2030 encourages female entrepreneurship and the growth of
small businesses owned and operated by women. Initiatives such as loan programs,
business incubators, and networking events provide support and resources for
aspiring female entrepreneurs to start and grow their businesses.
This led the nation to announce that it will be amending its previously
highlighted Vision 2030 target for female participation.
SME
boom
Small and medium enterprises, which are positioned to become a vital part of
economic development in the Kingdom and an enabler to achieving Saudi Arabia’s
Vision 2030, have recorded over 200 percent growth since the launch of the
national plan.
This growth encapsulated SR10 billion ($2.67 billion) in financial aid for SMEs
and 6.7 million employees in the sector by the end of 2023.
In 2022, the Small and Medium Enterprises Bank was established by the Council of
Ministers as one of several development funds and financial institutions
affiliated with the National Development Fund.
The SME Bank aims to increase financing provided to the sector and enhance
institutions’ contributions to providing innovative funding solutions that help
achieve stability for this sector.
Therefore, the Vision’s initiatives have further supported several programs,
centers, and services provided by the Small and Medium Enterprises General
Authority, also known as Monsha’at.
Among them is the “Tomoh” program, a community for fast-growing SMEs, aiming to
stimulate their growth through services and programs. Tomoh contributed to
listing 18 enterprises in the Saudi Stock Exchange parallel market “Nomu.”