As classic car enthusiasts will confirm, a blueprinted engine is carefully assembled to combine optimal performance with an ability to run under all conditions.
The Saudi Vision 2030 announced by Deputy Crown Prince Mohammed bin Salman is also a blueprint. It has been rightly praised for its clarity and far-sightedness. It identifies three national pillars — the role of Saudi Arabia in the Arab/Muslim world, its geographic location and its economic intent around which is built a plan for the next decade and a half.
The first pillar is self-evident. The pre-eminent position of the Kingdom regionally, and its importance in the Arab/Muslim world, is obvious.
Likewise, the second pillar the Kingdom is at the geographic crossroads of important international trade routes between Europe, Asia and Africa. It has developed a distinctive logistical capability through heavy investment already undertaken in ports, railways, roads and airports, on which it can capitalize to link infrastructure internally and across borders.
The third pillar looks forward. The core elements of the plan center on economic diversity and business stimulus, support and expansion. The benefits of a mixed economy are recognized. The private sector will be incentivized, through public-private partnerships (PPP) and generally, to play a greater role. Utilities (especially telecoms and IT) are specifically considered, as is the digital economy and e-commerce. An “advanced financial and capital market open to the world” will be formed to open up new investment opportunities and encourage innovation and competition. Financial stimulus will range from micro-finance to increasing FDI. An “environment attractive to both local and foreign investors” will be created, by easing restrictions on ownership and foreign investment.
The commitment to “no taxes on citizens’ income or wealth, nor on basic goods” is re-affirmed, but subsidies on fuel, food, water and electricity “will be better utilized by redirecting them toward those in need.” Here, the watchword is “competitiveness.” Providing subsidies with no clear eligibility criteria is identified as “a substantial obstacle” to efficiency. The Saudi Vision 2030 has also committed to ensuring high-quality utilities (water, electricity, public transport, roads).
Education, employment initiatives, health and welfare, social care, housing (encouraging the private sector to build houses and provide funding, mortgage solutions and ownership schemes), family savings, retirement options and entertainment (including tourism and leisure) are also all covered.
Government will be more joined up. The bedrock will be “transparency, accountability, moderation, tolerance, excellence, discipline, (and) equity.” Government will focus on its legislative, regulatory and supervisory roles, to provide world-class government services with the aim of becoming a global leader in e-government.
The government will take measures to eliminate waste, promote efficiency (especially by making public spending “radically more efficient” through the Qawam initiative), introduce rigorous auditing and benchmark against global best practice. Some state-owned assets, like a minority share in Saudi Aramco, will be privatized.
As part of transparency, the government is committed to eliminating corruption and improving communication between government and citizen. Goals, plans and performance indicators will be published so that progress and delivery can be publicly monitored. Communication channels between government agencies, and citizens and the private sector will be deepened by “facilitating interactive, online and smart engagement methods and ways to listen to citizens’ views, hearing all insights and perspectives.” The emphasis will be on better government service.
There will be localization initiatives, as well as a regional plan, and steps to attract the best global talents. As a commercial lawyer with long-standing international experience especially in the Gulf, this aspect is of particular interest.
Saudi Vision 2030 will be accomplished through a series of core policy programs, implemented by further, more specific, executive programs. Space does not permit me to discuss the whole Vision, which will, in any event, be supplemented shortly: The fine print to the blueprint.
Let me, therefore, look at just one element: The regional plan. The object is to facilitate the regional flow of goods, people and capital by “fortifying and extending interconnectivity and economic integration with other GCC countries” and “implementing the GCC common market, unifying customs, economic and legal policies and constructing (a logistics hub) and shared road and railway networks.”
The goal is ambitious. It is vital for the Gulf region to fulfil its full (diversified) economic potential. To achieve it, it will be necessary “to enter long-term partnerships with neighboring and friendly countries,” develop sectoral regulations and improve the application of existing laws.
The plan is broad in its outreach, and deep in its legislative implications. Its scope resembles the single market of the EU. Lessons — what works and, more importantly, what does not — can be learnt. The necessary legislative overhaul will be undertaken under the Regulations Review Program. The exercise will provide a forum for cross-sectoral collaboration. Government sets the political imperative. A combination of academic rigor, practitioner knowledge, sectoral experience and, say, the specialist skill of a legislative draftsman may be the vehicle whereby that imperative is met.
Other aspects of Vision 2030 present similar exciting opportunities to blueprint a bespoke solution. Vision 2030 can drive the Kingdom to greater global prominence through the precision engineering of its design and construction.
—
The writer is a commercial lawyer and arbitrator based in London and the Gulf.
The Saudi Vision 2030 announced by Deputy Crown Prince Mohammed bin Salman is also a blueprint. It has been rightly praised for its clarity and far-sightedness. It identifies three national pillars — the role of Saudi Arabia in the Arab/Muslim world, its geographic location and its economic intent around which is built a plan for the next decade and a half.
The first pillar is self-evident. The pre-eminent position of the Kingdom regionally, and its importance in the Arab/Muslim world, is obvious.
Likewise, the second pillar the Kingdom is at the geographic crossroads of important international trade routes between Europe, Asia and Africa. It has developed a distinctive logistical capability through heavy investment already undertaken in ports, railways, roads and airports, on which it can capitalize to link infrastructure internally and across borders.
The third pillar looks forward. The core elements of the plan center on economic diversity and business stimulus, support and expansion. The benefits of a mixed economy are recognized. The private sector will be incentivized, through public-private partnerships (PPP) and generally, to play a greater role. Utilities (especially telecoms and IT) are specifically considered, as is the digital economy and e-commerce. An “advanced financial and capital market open to the world” will be formed to open up new investment opportunities and encourage innovation and competition. Financial stimulus will range from micro-finance to increasing FDI. An “environment attractive to both local and foreign investors” will be created, by easing restrictions on ownership and foreign investment.
The commitment to “no taxes on citizens’ income or wealth, nor on basic goods” is re-affirmed, but subsidies on fuel, food, water and electricity “will be better utilized by redirecting them toward those in need.” Here, the watchword is “competitiveness.” Providing subsidies with no clear eligibility criteria is identified as “a substantial obstacle” to efficiency. The Saudi Vision 2030 has also committed to ensuring high-quality utilities (water, electricity, public transport, roads).
Education, employment initiatives, health and welfare, social care, housing (encouraging the private sector to build houses and provide funding, mortgage solutions and ownership schemes), family savings, retirement options and entertainment (including tourism and leisure) are also all covered.
Government will be more joined up. The bedrock will be “transparency, accountability, moderation, tolerance, excellence, discipline, (and) equity.” Government will focus on its legislative, regulatory and supervisory roles, to provide world-class government services with the aim of becoming a global leader in e-government.
The government will take measures to eliminate waste, promote efficiency (especially by making public spending “radically more efficient” through the Qawam initiative), introduce rigorous auditing and benchmark against global best practice. Some state-owned assets, like a minority share in Saudi Aramco, will be privatized.
As part of transparency, the government is committed to eliminating corruption and improving communication between government and citizen. Goals, plans and performance indicators will be published so that progress and delivery can be publicly monitored. Communication channels between government agencies, and citizens and the private sector will be deepened by “facilitating interactive, online and smart engagement methods and ways to listen to citizens’ views, hearing all insights and perspectives.” The emphasis will be on better government service.
There will be localization initiatives, as well as a regional plan, and steps to attract the best global talents. As a commercial lawyer with long-standing international experience especially in the Gulf, this aspect is of particular interest.
Saudi Vision 2030 will be accomplished through a series of core policy programs, implemented by further, more specific, executive programs. Space does not permit me to discuss the whole Vision, which will, in any event, be supplemented shortly: The fine print to the blueprint.
Let me, therefore, look at just one element: The regional plan. The object is to facilitate the regional flow of goods, people and capital by “fortifying and extending interconnectivity and economic integration with other GCC countries” and “implementing the GCC common market, unifying customs, economic and legal policies and constructing (a logistics hub) and shared road and railway networks.”
The goal is ambitious. It is vital for the Gulf region to fulfil its full (diversified) economic potential. To achieve it, it will be necessary “to enter long-term partnerships with neighboring and friendly countries,” develop sectoral regulations and improve the application of existing laws.
The plan is broad in its outreach, and deep in its legislative implications. Its scope resembles the single market of the EU. Lessons — what works and, more importantly, what does not — can be learnt. The necessary legislative overhaul will be undertaken under the Regulations Review Program. The exercise will provide a forum for cross-sectoral collaboration. Government sets the political imperative. A combination of academic rigor, practitioner knowledge, sectoral experience and, say, the specialist skill of a legislative draftsman may be the vehicle whereby that imperative is met.
Other aspects of Vision 2030 present similar exciting opportunities to blueprint a bespoke solution. Vision 2030 can drive the Kingdom to greater global prominence through the precision engineering of its design and construction.
—
The writer is a commercial lawyer and arbitrator based in London and the Gulf.
