Saudi Arabia is in a second era of massive expansion. Plans are even more spectacular in scale than the first time round. The effect on Saudi business and industry is already apparent. As can be seen in this year’s Top 100 list, business is booming, up 17 percent on last year. That growth is not because of oil money flowing into bank accounts. It is because expansion plans are already feeding back into more orders, more contracts, more work for Saudi industry and services. The vision of greater industrialization, the theme of this supplement, has started to create a momentum of its own. Growth is already creating further growth.
But because of the sheer enormity of what is planned we need to learn from mistakes in the past. We cannot afford to repeat them. We are, moreover, part of the global community, part of an interactive international economy. What happens in Saudi Arabia affects other countries and vice versa. It is not just a matter of oil supplies and prices: Saudi Arabia has such massive spending power worldwide that an order made or canceled here could make or break an industry on the other side of the world. That demands responsibility. Responsibility too is required by membership of the World Trade Organization. And there is responsibility on the home front; business and government have a duty to pursue best practice and be as transparent as possible.
Various economic cities have been planned; King Abdullah Economic City at Rabigh will be the largest construction project in the world. These are exciting times. Even so, it is useful to look at the economies of Singapore, Malaysia, Taiwan and other developing nations and see what it is that has enabled them to succeed. While there is new-found enthusiasm among the Kingdom’s business community, mere grandiose projects will not take us forward by themselves. There has to be a tangible basis to growth — industry, manufacturing, services, and above all commitment. Ultimately, it is our determination that will take us forward. There has to be that itch to succeed.
One of the most important aspects of the vision of a developed and prosperous Saudi Arabia is the equitable distribution of these mega projects. After three decades of growth, the country has three major metropolitan centers: Riyadh, Jeddah and the Eastern Province. They are bursting at the seams. They cannot carry on sucking in people, projects and investment. It is neither viable nor fair nor sensible. The mark of the new boom is development elsewhere: In Abha, Najran and Jizan in the south, in Hail, Tabuk and Al-Jouf in the north, and in other locations. This will take the pressure off the three major cities. It will stop the migration of people in search of jobs and livelihood.
Custodian of the Two Holy Mosques King Abdullah’s vision is of balanced and integrated development where the whole country is moving forward, not just parts of it. It is a holistic approach, and it will lead to greater cohesion. The king has a vision that encompasses all citizens of the state and this has been reflected in the recent decisions.
The thrust on education is vital. There is a skills shortage in Saudi Arabia and it could stymie growth if ignored. How can the new mega industries function if there are no Saudis with the skills and know-how to operate them? As Bill Gates pointed out in his recent address in Riyadh, countries that have become economic powerhouses have some of the best universities. There is no substitute for human resources. We need universities and good centers of excellence. The king and his advisers are well aware of it. So it is no accident that the wave of new mega projects announced by him over the past year has been accompanied by an equally impressive wave of new universities, colleges and training institutes. Saudi Arabia is going for a knowledge-based economy big time. The universities that are coming up will fill the gap in education. We need educated cadres.
Women have come to play a very important role. They need to be encouraged. They are partners in progress. And they are playing a very active and positive role in the Kingdom’s overall development. A country that does not involve half its population in the economy, in business, in industry, is going to find itself missing out and falling behind in today’s tough and highly competitive global market. Saudi businesswomen, if they cannot get the opportunities here, will put their money to work elsewhere.
The bureaucracy also needs to evolve. One petty functionary can do untold damage to a project by wrapping it in red tape. We are not a nation of clerks. The red tape has to go. We need everybody’s involvement to march ahead. There is no room for complacency. Platitudes about support will not be enough. We need active commitment for development to happen. We need to learn from the mistakes that we committed in the past. Let us not repeat them.