Suggested new subsection in Economy section of Saudi Arabia - above the Agriculture subsection and incorporating the last two paragraphs before the Agriculture subsection:
Saudi Vision 2030
editFollowing the slump in oil prices from 2013, changes to the cabinet structure included the creation in 2015 of the Council of Economic and Development Affairs, chaired by then-Defense Minister Mohammad bin Salman.[1] The following year bin Salman announced the Saudi Vision 2030 program, which aims to diversify the Saudi economy and reduce its dependence on oil revenues and state spending.[2]
Central to the program is the Public Investment Fund of Saudi Arabia (PIF), which in 2017 began investing in sectors including infrastructure, real estate and technology with the goal of becoming one of the world’s largest sovereign wealth funds by 2030.[3] Several projects were announced including Neom, a proposed $500 billion mega-city in the northwest of the kingdom, extending into Jordan and Egypt.[4] The PIF also launched Saudi Arabian Military Industries (SAMI), a domestic defense company.[5]
Additional reforms within Vision 2030 include a privatization program, which aims to raise the private sector’s share of GDP; a financial sector development program to diversify financial services; and a fiscal balance program, which commits the government to cutting the budget deficit and increasing its non-oil revenues.[6][7][8]
In September 2018 the Public Investment Fund completed a deal with a group of major global lenders for a loan of $11 billion. The deal raised more than initially planned and was the first time the PIF had incorporated loans and debt instruments into its funding.[9] The Saudi government had arranged a similar loan of $16 billion in March 2018.[10] According to data from Fitch Ratings, over two years starting from May 2016 Saudi Arabia went from having zero debt to raising $68 billion in dollar-denominated bonds and syndicated loans—one of the fastest rates among emerging economies.[11]
Each year, about a quarter-million young Saudis enter the job market. With the first phase of Saudization into effect, 70% of sales job are expected to be filled by Saudis. However, the private sector still remains hugely dominated by foreigners. The rate of local unemployment is 12.9%, its highest in more than a decade. According to a report published by Bloomberg Economics in 2018, the government needs to produce 700,000 jobs by 2020 to meet its 9% unemployment target.[12]
Suggested expanded Tourism subsection of Saudi Arabia:
Tourism
editAlthough most tourism in Saudi Arabia still largely involves religious pilgrimages, there is growth in the leisure tourism sector. According to the World Bank, approximately 14.3 million people visited Saudi Arabia in 2012, making it the world's 19th-most-visited country.[13] Tourism is an important component of the Saudi Vision 2030 and according to a report conducted by BMI Research in 2018, both religious and non-religious tourism have significant potential for expansion.[14] Projects include the planned 34,000 sq km Red Sea tourist resort and the 334 sq km Qiddiya entertainment park near Riyadh.[15][16] Heritage sites are being restored in the northwestern Al-Ula region, including the Nabatean tombs of Mada'in Saleh.[17]
Starting December 2018, the kingdom will offer an electronic visa for foreign visitors to attend sport events and concerts. The “sharek” visa process will start with 15 December, Saudia Ad Diriyah E Prix race.[18]
- ^ Joseph A. Kechichian (18 February 2015). "Saudi king's son on fast track to power". Gulf News. Retrieved 1 November 2018.
- ^ "Saudi Arabia: Saudi Vision 2030 Sets Out Post-Oil Economic Transformation Plan". Forbes Middle East. 1 May 2016. Retrieved 1 November 2018.
- ^ Sarah Algethami (22 October 2017). "How Saudi Arabia Is Building Its $2 Trillion Fund". Bloomberg News. Retrieved 1 November 2018.
- ^ Alaa Shahine; Glen Carey; Vivian Nereim (24 October 2017). "Saudi Arabia Just Announced Plans to Build a Mega City That Will Cost $500 Billion". Bloomberg News. Retrieved 1 November 2018.
- ^ "Saudi Arabia launches military industries company". Reuters. 17 May 2017. Retrieved 1 November 2018.
- ^ "Saudi economic council adopts Delivery Plan 2020 privatization program". Al Arabiya. 24 April 2018. Retrieved 1 November 2018.
- ^ "Saudi Arabia approves development plan for its financial sector". Reuters. 9 May 2018. Retrieved 1 November 2018.
- ^ Sarmad Khan (8 May 2018). "Saudi Arabia's non-oil revenue surges 63% in first quarter". The National. Retrieved 1 November 2018.
- ^ "Saudi Arabia's Sovereign Wealth Fund Raises $11 Billion Loan". Bloomberg. 17 September 2018. Retrieved 13 November 2018.
- ^ "Saudi Wealth Fund Prepares to Sign $11 Billion Loan". Bloomberg. 11 September 2018. Retrieved 11 September 2018.
- ^ Jones, Rory (2018-10-17). "Fate of Journalist Heightens Saudi Debt Worries". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-10-18.
- ^ "Saudi Businesses Are Struggling to Hire Saudi Workers". Bloomberg News. Retrieved 19 September 2018.
- ^ Tourism in Saudi Arabia: Wish you were here, economist.com.
- ^ Tourism key to Saudi Arabia's Vision 2030 plans[permanent dead link], arabianbusiness.com
- ^ Alaa Shahine; Vivian Nereim (1 August 2017). "Saudi Arabia Plans a Huge Red Sea Beach Tourism Project". Bloomberg News. Retrieved 1 November 2018.
- ^ Stephen Kalin; Marwa Rashad (28 April 2018). "Saudi Arabia launches multi-billion dollar entertainment resort". Reuters. Retrieved 1 November 2018.
- ^ Sarah Lazarus (21 June 2018). "Is Saudi Arabia the next big heritage tourism destination?". CNN. Retrieved 1 November 2018.
- ^ "Saudi Arabia to offer visitor visa for special events from December". Reuters. Retrieved 25 September 2018.