Saudi Arabia The roadmap to 2030

In launching its Vision 2030 in April this year, Saudi Arabia made a bold statement about its intention to transform itself into fully diversified and modern economy and society. This included converting the Public Investment Fund into the world’s largest sovereign wealth fund, boosting private sector contribution to 65% of GDP, reducing unemployment to 7% from 11%, privatizing government services, reforming education, and making continued investment in infrastructure. While welcoming the news, financial markets were understandably uncertain about how this would all be achieved, particularly at a time of numerous challenges in the region. However, two months on we are now starting to see some of the color and details of this plan delivered through the recent publication of the National Transformation Program (NTP) 2020. If implemented successfully 2016 will likely be viewed in the future as being a watershed year for Saudi Arabia’s long term economic and social development. 

Saudi Arabia’s leadership led by King Salman bin Abdul-Aziz and spearheaded by Deputy Crown Prince Mohammed bin Salman have begun to set clear goals for transforming the kingdom’s economy to become more sustainable, dynamic and less dependent on oil. This entails not only reforming the economic landscape, but improving quality of life in the Kingdom, and reforming the public sector. The National Transformation Program 2020 approved on the 6th of June is one of several plans designed to achieve the longer term targets of the 2030 Vision.  Where the Vision 2030 outlines the long term strategic goals for the Kingdom, the NTP identifies specific objectives that need to be achieved in order to meet the Vision 2030 goals.  For each objective, key performance indicators are identified, and these will be measured and assessed against the targets set. Effectively the NTP is a five year stepping stone within the wider 2030 road map, which can be expected to be updated and developed in the years ahead.

We have divided this document into two main parts. The first section looks at the at our key takeaways from the Vision 2030 goals, by defining and describing what we see are the most important elements of Saudi Arabia’s long term development plans. The second part of the document has been split into two appendices that provide a contextual background and more detailed description of both Vision 2030 and the National Transformation Program 2020.  Vision 2030’s success will ultimately depend on implementation and follow through. Given the length of the current downturn in oil prices, the drive to break from oil addiction looks stronger than ever. 

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