Vision 2030: An enduring success story of a nation

Vision 2030: An enduring success story of a nation

Vision 2030: An enduring success story of a nation
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April 2021 marks a cornerstone of great achievements for Saudi Arabia’s Vision 2030 program, which was officially launched five years ago this month.

The groundbreaking Vision 2030 agenda was built on three pillars: A vibrant society, a thriving economy and an ambitious nation. The Vision 2030 intends to draw on the Kingdom’s intrinsic strengths to help its citizens realize their aspirations.

During the past five years, Saudi Arabia has witnessed great achievements in every aspect of life guided by the Vision 2030 goals, which have attracted the attention of the world and elevated the Kingdom to a leading position globally. On the economic front, Saudi Arabia has managed in the past five years to implement rigorous economic and financial reforms aimed at maximizing oil and non-oil government revenues, in conjunction
with improving government spending efficiency and managing risks associated with these processes.

The Fiscal Balance Program, one of the main Vision initiatives, is aimed at maintaining a stable government reserve account, while retaining the Kingdom’s ability to borrow funds from local and international markets as per the medium-term debt strategy.

Despite the unprecedented difficulties the whole world faced due to the coronavirus disease (COVID-19) pandemic, the government was able to manage the economy so well and generate growth in real gross domestic product (GDP) of 3.2 percent this year, a significant improvement from last year, which saw a decline of 3.7 percent.

It is worth mentioning that in the first quarter of this year 11 initiatives and projects were revealed by Crown Prince Mohammed bin Salman, which gives a clear message that the Kingdom has ambitious plans to enhance its economy.

During the launch of the Shareek program by Crown Prince Mohammed bin Salman, it was mentioned that the Kingdom will spend SR27 trillion ($7 trillion) over the next 10 years, which will strengthen the private sector’s contribution to the Kingdom’s economy and create thousands of jobs.

Additionally, the government has approved the new privatization law, which is expected to boost the private sector’s contribution to the GDP from 40 percent to 65 percent, which is a major goal of the Kingdom’s Vision 2030 ambitions.

The Vision 2030 program has succeeded in drawing a clear road map for the Kingdom’s future, economically, politically and socially. This will help in achieving one of the program’s key pillars, which is to diversify the economy away from a reliance on oil and gas, and expand into investments in new sectors.

• Talat Zaki Hafiz is an economist, financial analyst, and a board member of the Saudi Financial Association. Twitter: @TalatHafiz

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