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April 25, 2016

«Saudi Arabia’s Vision for 2030 (1452 H)»

A Simplified Guide to the Business Community

CENTER FOR INFORMATION AND RESEARCH COUNCIL OF SAUDI CHAMBERS

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Kingdom of Saudi Arabia’s Vision 2030 (1452 H)

A Simplified Guide to the Business Community

The Council of Ministers session held on Monday Rajab 18, 1437 H corresponding to April 25,

2016 under the chairmanship of Custodian of the Two Holy Mosques King Salma was devoted

to discuss the Kingdom of Saudi Arabia’s Vision 2030, which was drafted by the Council of

Economic and Development Affairs (CEDA)’s Decree No. (3-31/37/E) dated Rajab 12, 1437 H

including the Letter from HRH Deputy Crown Prince, Second Deputy Prime Minister, Minister

of Defense and Chairman of the CEDA No. 2719 dated Rajab 18, 1437 H concerning the draft

Vision.

The Council of Ministers has concluded the following decree during its session:

(i) Endorsing the Kingdom of Saudi Arabia’s Vision 2030, which was drafted by the

Council of Economic and Development Affairs (CEDA)’s Decree No. (3-31/37/E)

dated Rajab 12, 1437 H in its formulation accompanying this decree.

(ii) The Council of Economic and Development Affairs (CEDA) shall set forth the

required mechanisms and arrangements to implement and follow up this Vision.

(iii) Ministries and other government agencies –each within its area of prescribed

competency– shall take the required actions to implement the Vision according to the

mechanisms and arrangements above-mentioned in (ii) of this decree.

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PILLARS OF THE KSA VISION 2030:

1. the heart of the Arab and Islamic worlds

2. a global investment powerhouse

3. a global hub connecting three continents, Asia, Europe and Africa

Successful visions are based on strong pillars. The three pillars represent Saudi Arabia’s

strengths, i.e. unique competitive advantages, and provide better opportunities for partnerships

with the private sector. The Kingdom will improve the business environment, so that its

economy grows and flourishes, driving healthier employment opportunities for citizens and long-

term prosperity for all. This promise is built on cooperation and on mutual responsibility.

THEMES AROUND WHICH THE KSA VISION IS BUILT:

1. A Vibrant Society,

2. A Thriving Economy, and

3. An Ambitious Nation.

These three themes are inextricably intertwined in order to achieve the Vision and in order to

maximize the benefits of the pillars of the Vision.

This first theme focuses on the importance of building a vibrant society in which members live

in accordance with the Islamic principle of moderation, enjoy a good life supported by an

empowering social and health care system. The second theme focuses on creating a thriving

economy that provides opportunities for all by building an education system aligned with market

needs and creating economic opportunities for the entrepreneur, the small enterprise as well as

the large corporation, develop investment tools to unlock our promising economic sectors,

diversify the Saudi economy, create job opportunities, improve the business environment to

leverage the unique strategic location. In order for the KSA to be an ambitious nation, the public

sector and the government will lead changes to promote effectiveness, transparency,

accountability and enabling high-performance.

COMMITMENTS AND GOALS UNDER EACH THEME OF THE VISION

Commitments and goals under each theme are quantitative specific and time-bound

1. A Vibrant Society

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1.1. To increase our capacity to welcome Umrah visitors from 8 million to 30 million every

year.

1.2. To more than double the number of Saudi heritage sites registered with UNESCO.

1.3. To have three Saudi cities be recognized in the top-ranked 100 cities in the world.

1.4. To increase household spending on cultural and entertainment activities inside the

Kingdom from the current level of 2.9% to 6%.

1.5. To increase the ratio of individuals exercising at least once a week from 13% of

population to 40%.

1.6. To raise our position from 26 to 10 in the Social Capital index.

1.7. To increase the average life expectancy from 74 years to 80 years

2. A Thriving Economy

2.1. To lower the rate of unemployment from 11.6% to 7%.

2.2. To increase SME contribution to GDP from 20% to 35%.

2.3. To increase women’s participation in the workforce from 22% to 30%.

2.4. To move from our current position as the 19 th

largest economy in the world into the

top 15.

2.5. To increase the localization of oil and gas sectors from 40% to 75%.

2.6. To increase the Public Investment Fund’s assets, from SAR 600 billion to over 7

trillion.

2.7. To rise from our current 25 th

position to the top 10 countries on the Global

Competitiveness Index.

2.8. To increase foreign direct investment from 3.8% to the international level of 5.7% of

GDP.

2.9. To increase the private sector’s contribution from 40% to 65% of GDP.

2.10. To raise our global ranking in the Logistics Performance Index from 49to 25 and

ensure the Kingdom is a regional leader.

2.11. To raise the share of non-oil exports in non-oil GDP from 16% to 50%.

3. An Ambitious Nation

3.1. To increase non-oil government revenue from SR163 billion to SR1 Trillion.

3.2. To raise our ranking in the Government Effectiveness Index, from 80 to 20.

3.3. To raise our ranking on the E-Government Survey Index from our current position of 36

to be among the top five nations.

3.4. To increase household savings from 6% to 10% of total household income

3.5. To raise the non-profit sector’s contribution to GDP from less than 1% to 5%.

3.6. To rally one million volunteers per year (compared to 11,000 now).

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HOW TO ACHIEVE THE VISION?

Many transformative programs that have paved the way for the Vision have already been

launched and will help achieve the goals, including:

 The Government Restructuring Program

 The Strategic Directions Program

 The Fiscal Balance Program

 The Project Management Program

 The Regulations Review Program

 The Performance Measurement Program

To ensure the realization of Saudi Arabia’s Vision 2030, a set of executive programs that will

have a significant impact on implementation are being prepared and will be launched in due

course, including:

 The Saudi Aramco Strategic Transformation Program

 The Public Investment Fund Restructuring Program

 The Human Capital Program

 The National Transformation Program

 The Strategic Partnerships Program

 The Privatization program

 The Program for Strengthening Public Sector Governance

The Government will continue to launch new programs in the upcoming years as required, and

will continuously review and assess the performance in achieving this Vision.