Saudi Arabia to overhaul Kingdom’s Economy

Mohammad bin Salman, Saudi Arabia’s deputy crown prince is aggressively working to overhaul  the Kingdom economy. 31-year old powerful Prince under the Vision 2030 calls for giving the Kingdom access to various sources of financing  and relaxing rules to attract foreign investment in Saudi stock market.  

When US President-elect Donald Trump is set to decrease dependence on foreign markets to establish manufacturing units in US thus creating employment opportunities, the Kingdom is opening up its economy  to turn into “an epicentre of trade and the gateway to the world” by becoming a global investment powerhouse. 

It aims to move away form the 80 years of dependence on oil revenues due to plunging of global crude price in recent years. Asian central banks, European sovereign wealth funds and Middle Eastern banks have flocked to purchase Saudi Arabia’s $17.5 billion first global bonds.

It also offers to export gold, phosphate, uranium to Asia, Europe and Africa. The most significant aspect of Vision 2030 is the Kingdom plans to sell a 5% stake in the state oil giant Aramco through an IPO which will raise an estimated $2 trillion in 2018. 

The economic Vision also includes to deploy demographic bulge where 65% of population is under 30 by emphasizing on the digital economy and entrepreneurship and also to  train Saudi youth with new IT skills for the generation Next job market. 

The deputy crown prince and the chairman of Saudi Arabia’s Council for Economic and Development Affairs that drafted Vision 2030 said, “Our vision is a tolerant country, with Islam as its constitution and moderation as its method.” 

In an effort to be counted among the strong economies of the world, Saudi Arabia is on the lines of diversifying its economy by privatizing some sector to create jobs and will cut subsidies on electricity and water bills. Further government plans to involve private sector in building infrastructure and in education sector specifically constructing schools. 

The Prince is determined  to discard the old values and  bring his country into the main stream  of technologically driven economies.

Article Courtesy : Arti Bali, Senior Journalist & Analyst