Saudi Arabia is one of the best countries to invest in right now. The main pillar supporting the pull towards Saudi Arabia is the development strategies and the government's ever-growing support to the population conducting business there.
The government of Saudi Arabia realizes how they can work with the changing times and evolve at a pace that carries the whole nation. In the past few years, the kingdom has witnessed many changes like improved internet penetration, improved banking system, improving business policies, etc., that would eventually help the citizens and the country.
One of such revolutionary developments that the government has announced and is implementing is Saudi Vision 2030.
It was first announced on 25th April 2016 by the Crown Prince- Mohammad bin Salman. The Council of Economic and Development Affairs (CEDA) was handed the task of identifying and supervising the technicalities and course of action crucial for implementing "Saudi Arabia's Vision 2030".
Aim of Saudi Vision 2030
Saudi Vision 2030 is a stratagem being implemented to reduce Saudi Arabia's burden of revenue from oil to diversify its economy. The development of key sectors like education, health, infrastructure, etc., is also one of the program's main goals.
Some of the main agendas include:
- prioritizing economic and investment activities;
- flourishing international trade not primarily focused on oil;
- displaying a softer and more secular image of Saudi Arabia;
- increasing the allocated budget for the military; and
- manufacturing of equipment and ammunition.
The plan will be overseen by a group of people appointed under the Project Management Office of the Council of Economic and Development Affairs, the Delivery Unit, and the National Center for Performance Measurement.
Growth in entrepreneurship is also being seen in the Kingdom as a lot of companies are investing there. Company registration in Saudi Arabia can be often tedious and lengthy, getting help from advisors is definitely worth it to avoid the unnecessary burden.
The Three Pillars of the Plan
There are three main categories in which the plan has been divided for maximum impact and effectiveness. These particular phases will be dealing with the overall things that eventually have an impact on the development of any nation.
The bifurcation carries these specific goals:
1. A vibrant society
This targets the overall cultural aspect of Vision 2030.
- increase capacity to welcome Umrah visitors from 8 million to 30 million every year;
- double the number of kingdom's heritage sites registered with UNESCO;
- have three Saudi cities rank in the top 100 cities in the world;
- increase household spending on cultural and entertainment activities in Saudi Arabia from the level of 2.9% to 6%;
- increase exercising population who exercise at least once a week from 13% of to 40%;
- raise position from 26 to 10 in the Social Capital index; and
- increase the average life expectancy from 74 years to 80 years.
2. A thriving economy
- lowering the rate of unemployment from 11.6% to 7%;
- increase the contribution of SME to GDP from 20% to 35%;
- increase the participation of women in the workforce from 22% to 30%;
- raise the kingdom's global ranking in the Logistics Performance Index from 49 to 25 and ensure that they become the regional leader;
- increase the share of non-oil exports in non-oil GDP from 16% to 50%;
- rise to the top 10 from current 25th position on the Global Competitiveness Index;
- increase foreign direct investment from 3.8% to the international level of 5.7% of GDP;
- increase the private sector's contribution from 40% to 65% of GDP;
- rank higher on the most significant economy list;
- increase the localization of oil and gas sectors from 40% to 75%; and
- increase the assets of Public Investment Fund's from SAR 600 billion to over 7 trillion.
This branch will aim at the employment and investment aspect of the Saudi Vision 2030.
3. An ambitious nation
This is designed to make the effectiveness of the government optimal and diversify in non-oil markets.
- increase the non-oil government revenue from SAR 163 billion to SAR 1 Trillion;
- push up the kingdom's ranking in the Government Effectiveness Index, from 80 to 20;
- raise Saudi Arabia's ranking on the E-Government Survey Index from the current position of 36 to the top five nations;
- increase household savings from 6% to 10% of total household income;
- raise the contribution of the non-profit sector from less than 1% to 5%; and
- rally one million volunteers every year compared to the current figure of 11,000.
How Can We Help?
Saudi Vision 2030 is already turning Saudi Arabia into an investment paradise. Our role here at Business Setup Worldwide is to make sure that your investment is accurate and optimal. The idea of setting up a business in Saudi Arabia is definitely good, let us guide you through it.
Contact us with any query you want to clarify. Our advisors would be more than happy to help you out.