Read on to know what measures Saudi Arabia is taking for 2030 to promote its economy, while also reducing its dependence on oil revenues.

Saudi Arabia, the largest economy in the Middle East, is undergoing a major transformation. The nation is aiming to diversify its economy and minimize its reliance on oil revenues. As part of this regional headquarters scheme, the government is attracting multinational companies to set up their main offices in the lands of the Saudi Kingdom. 

The initiative has helped the country attract about 80 businesses already including companies like Unilever, PepsiCo, Siemens, etc.  The endeavour is aimed at improving the employment rate and boosting the Saudi economy.

The Regional Headquarters Scheme

The regional headquarters scheme is the country’s vision plan for 2030, which has an ultimate objective of decreasing oil dependence, while also opening new channels of revenue.  In short, Saudi Arabia is promoting various multinational companies to set up and constitute a business hub for their operations in the MENA region i.e. Middle East and North Africa. In return, the companies would benefit from Saudi’s strategic location, top of the line infrastructure, and a prime business environment.

According to British Financial Times, up to 80 companies including renowned multinationals, have been granted license to relocate their headquarters to Saudi Arabia. It is expected to place many of the regional set ups in Riyadh King Abdullah’s Financial District, which is an ultra modern financial centre offering world class services and provisions.   

In fact, many Saudi companies are aiming to invest billions of dollars in new projects in the upcoming times, and this would attract multinational companies even further.

The Saudi Initiative for promoting FDIs (foreign direct investment)

Another vision plan of Saudi Arabia for 2030 is to increase foreign investments in the Kingdom. The country’s aim is to formulate a healthy and conducive business environment. This will be done by offering multiple incentives to the foreign investors like reliefs on visa limits, , streamlined visa procedures, recruitment quotas for Saudi nationals for up to ten years, etc.

The new FDI scheme has attracted big investors to the country like SoftBank ,which has contributed around $45 already in Saudi Arabia’s vision fund. This fund is not an ordinary fund. It will be invested further in major tech companies like Slack, WeWork, Uber, etc. Because of such efforts, the country ranks 18th in the global ranking of largest economies worldwide.

Privatization of State-Owned Companies

One of the objectives of the 2030 vision plan of Saudi Arabia is mass privatisation of major companies to promote private sector growth. Saudi Aramco, world’s biggest oil company, is expected to be privatised which is claimed to be record largest IPO in history. The company has an estimated valuation of $2 trillion and would result in billions of dollars in government revenue.

Privatisation of several other companies like Saudi Electricity, Saudi Telecom, and Saudi Arabian Mining, is also included in the plan for 2030. Development of a privatisation unit to conduct and monitor the privatisation process is also a part of the plan. It will ensure that all the processes are executed in a transparent and efficient manner.

The privatisation aspect of the Vision plan 2030 is aimed at minimising the government role in the economy and making it self-reliant by boosting private sector growth.

Kick-starting Mega Projects

Another component of the vision plan 2030 is to initiate big projects in the country. This includes concepts like NEOM program, a $500 billion planned smart city project that will be built from scratch in the north-western region of the state. The city will be powered completely by various renewable energy sources present. Another mega-project is the Red Sea Project, which will be a luxury tourism destination site, built on the Red Sea coastal area. The project aims to attract one million tourists yearly, and will entail multiple resorts, hotels, entertainment facilities, and amusement sites.

The flourishing Saudi economy is also contributing to the UAE clients and residents in numerous ways. A major approach to achieve this effect is to introduce new opportunities for trade and investment all over the place. Currently the Saudi government is committed to diversify its economy away from oil and many businesses in the rest of the UAE are entering into partnerships and collaborations with Saudi companies. This has increased job opportunities for the UAE residents, especially in fields of technology and construction.

The Saudi government is very inclined towards driving rapid economic growth in the region by initiating major projects. Being the largest economy in the Gulf Cooperation Council (GCC), Saudi Arabia’s economic prosperity is causing a Domino effect on neighbouring countries and UAE at large. This demonstartes that as Saudi Arabia’s economy thrives, so does the UAE’s, which institutes more work opportunities for businesses and job hunters as well.

The Vision 2030 plan also involves various social reforms, like lifting of the ban on female driving. Generally, the plan is a comprehensive roadmap for the country’s future and seeks modernization to convert Saudi Arabia into a prosperous nation.