Saudi Vision 2030

Overview of the Vision 2030

Saudi Arabia's Vision 2030 seeks to exploit natural resources for economic development. One of the areas targeted in the Vision 2030 is the mining of minerals and precious stones. Uranium, gold, and phosphate are among the natural resources which may be used to diversify the income of the nation. Notably, the Vision 2030 seeks to unlock the potential of the young generation by supporting innovation and creativity. Particularly, the Vision 2030 encourages innovation and creativity in architecture. Also, the Vision 2030 aims at promoting tourism in Saudi Arabia. The Vision 2030 aims for the restoration of holy sites in Saudi Arabia. Through the restoration and advertisement of the holy sites, Saudi Arabia will be able to attract millions of Muslims (Niblock, 2007). This will consequently diversify income sources through tourism practices.

In the Vision 2030, oil companies such as Aramco will be transformed into global businesses dealing in a series of products. The public investment fund will refocus on investing in foreign opportunities. Moreover, the Vision 2030 seeks to reduce the dependency of Saudi Arabia on foreign nations for its military equipment. In Vision 2030, innovation and investment seek to empower Saudi Arabia with the ability to manufacture fifty percent of its military equipment. This will reduce the cost of acquiring military equipment from foreign nations and create employment opportunities in Saudi Arabia.

The effectiveness of the Vision 2030 is dependent on the technology level. The Vision 2030 seeks to provide digital services to its citizens. This will encourage transparency in overtime and eliminate delays as a result of bureaucracy. The Vision 2030 is spearheaded by the government. Optimization of the Vision 2030 is dependent on the efficiency of government agencies in implementing economic strategies and plans. The Vision 2030 advocates for the continued performance evaluation of government agencies to ensure effective execution of economic strategies in Saudi Arabia. It is critical to mention that the vision 2030 is a comprehensive approach to economic diversification. This is to imply that the development of alternative sources of income is not primarily focused on diverting from the exportation of crude oil in Saudi Arabia. However, the strategy seeks to create a self-sustaining environment in which there is the change of the education system to promote innovation and creativity which will lead to inventive business ideas. Also, the Vision 2030 seeks to eliminate price fluctuation. Price fluctuation is among the main reason which contributes to the unsustainable nature of the oil industry as the sole source of revenue in the country. The Vision 2030 aims to avert price fluctuation and its influence by providing diverse sources of income in Saudi Arabia.

The social impact of the Vision 2030 in Saudi Arabia

The Vision 2030 is governed by Islamic teachings and values. Therefore the Vision 2030 advocates for equity, discipline, and transparency from citizens towards achieving the economic objectives (Dept, 2014). Also, the Vision 2030 encourages the hospitality provided by citizens in Saudi Arabia. Hospitality has a significant influence in promoting tourism in Saudi Arabia. Notably, having the two holy sites contribute to a significant number of tourists visiting Saudi Arabia which encourages tourism as an economic activity.

As an attempt to enhance hospitality in Saudi Arabia, the major airports in the country are being expanded, and there is the renovation of the holy sites. Moreover, railroad construction such as the Makkah Metro project will promote convenience in visiting the holy sites in Saudi Arabia. The Vision 2030 seeks to promote spiritual development of pilgrims as an attempt to enhance tourism. This has led to the execution of the intended plan of increasing cultural venues in Saudi Arabia.

The Vision 2030 seeks to uphold the cultural history of Saudi Arabia. The cultural history has led to the cultural preservation of the nation. The Vision 2030 seeks to promote the cultural heritage as if encourages unity and solidarity of citizens. Unity and solidarity are essential towards the success of the intended economic activities to enhance revenue diversity. As at 2030, the vision 2030 aims to enhance tourism as an economic activity in Saudi Arabia. Under this principle, the objective is to maintain annual visits between eight and thirty million and increase the number of heritage sites in Saudi Arabia.

Another social impact of the implementation of the Vision 2030 is the promotion of the entertainment industry in Saudi Arabia. As the Vision 2030 seeks to diversify revenue sources, the entertainment industry significantly benefits (Vinogradov, 2017). The Vision 2030 seeks to promote talent in the county by providing entertainment arenas for writers and musicians. Additionally, the Vision 2030 seeks to provide financial assistance to entertainment artists. The development of cultural museums also promotes the development of entertainment in Saudi Arabia as visitors come to witness the cultural heritage of Saudi Arabia.

Sport is an area of focus in the Vision 2030. Sports encourage healthy living and contribute to the formation of mutual relationships between nations. The Vision 2030 aims to provide additional sports facilities in Saudi Arabia (Armerding, 2003). Furthermore, the Vision 2030 seeks to promote sports competitions between countries which would contribute to mutual relationships which may be used to promote economic development in Saudi Arabia.

Security is an essential element in economic development. Security allows foreign investors to invest in a country and perform business operations. In the Vision 2030, the focus is on enhancing the security of the cities in Saudi Arabia. By providing security, any planned economic activity in the nation can be successfully implemented.  The Vision 2030 seeks to promote security in Saudi Arabia by combating drug abuse and crime in the nation. Drug abuse is the leading causes of crime as the youth seek to acquire income unlawfully. Also, the Vision 2030 promotes security in the transport sector to ensure the safe transportation of products from one place to another. Also, in ensuring security in Saudi Arabia, the Vision 2030 seeks to invest in the military and equipment. Subsequently, this will increase the confidence of investors in Saudi Arabia as an investment option and contribute to the diversification of sources of revenue in the country.

The Vision 2030 will lead to environmental protection in Saudi Arabia. Environment protection contributes to a habitable environment which promotes tourism and investment. This will contribute to income diversity in Saudi Arabia. The Vision 2030 promotes waste management and recycling of water. Also, the Vision 2030 mitigates desertification in Saudi Arabia. The Vision 2030 fights against pollution in Saudi Arabia and promotes economic use of water. Decisively, the Vision 2030 contributes to the sustainability of the environment and conservation of the environment. Through the implementation of the Vision 2030, diversified income sources in Saudi Arabia can be achieved.

Economic impacts of implementing the Vision 2030.

As mentioned above the Vision 2030 intends to eliminate the dependence on the exportation of crude oil as the primary source of income in Saudi Arabia. The intended goal has some economic influence in Saudi Arabia.

Firstly, the curriculum in Saudi Arabia has been revised to accommodate for the various requirements in the diversification of income in Saudi Arabia. This constitutes the evaluation of requirements of each economic sector and modifying the education curriculum to provide the required knowledge and skills. Also, the curriculum has been revised to promote innovation and creativity by enhancing practical disciplines. Moreover, the education curriculum has been tailored to promote international exposure. This will translate in the formation of new business ideas, which contribute to revenue diversification in Saudi Arabia. Moreover, the additional finance and increase in facilities intended by the Vision 2030 will enhance the knowledge and skill level of Saudi Arabia's citizens thus promoting economic growth and development.

Another economic effect of the execution of the Vision 2030 is the growth and development of small to medium scale enterprises. The Vision 2030 acknowledges that a sustainable economy is dependent on the ability of citizens to generate personal income. This realization has led to the creation of an ideal business environment suited for small to medium scale enterprises. This will lead to the independence of the Saudi Arabian economy thus minimizing the dependence on the exportation of crude oil. In the creation of an ideal environment for business operations, the Vision 2030 seeks to enhance credit availability to citizens. Research shows that the lack of capital is the major hindrance to entrepreneurship. By enhancing credit availability, citizens in Saudi Arabia may start businesses practices which contribute to the diversification of income-generating practices in Saudi Arabia. Also, the Vision 2030 has revised business regulations and rules in Saudi Arabia. The revised rules safeguard the welfare of small to medium scale business enterprises through the protection from multinationals. Moreover, the revised business rules lay few restrictions for limiting business practices. This contributes to the promotion of entrepreneurship in Saudi Arabia thus diversifying revenue generating practices and averting the dependence on the exportation of crude oil as the chief source of income in Saudi Arabia.

Diversified income generating practices encompasses the provision of equal opportunities to citizens. The Vision 2030 of Saudi Arabia seeks to provide equal opportunities to all citizens in Saudi Arabia regardless of age, gender or ethnicity. Notably, the Vision 2030 seeks to empower women who have been discriminated in the past. The objective to diversify income has led to the development of training programs to educate women on the various economic practices they can engage. This has led to the reduction of dependence on males as the providers in the society. Consequently, this has led to new business operations which generate income thus eliminating the dependence on the exportation of crude oil as the primary source of income in Saudi Arabia.

As mentioned above, foreign interaction is beneficial to Saudi Arabia as it improves exposure to new ideas. The implementation of the Vision 2030 is an attempt to diversify income generating practices in Saudi Arabia which has led to the development of an enabling environment which seeks to attract foreigners. The Vision 2030 has led to the reevaluation of property rights in Saudi Arabia. This modification has enabled foreigners to own property in Saudi Arabia which was previously not possible. Additionally, the rules support foreign investment. The factors as mentioned above contribute to the enticing of foreign investors in Saudi Arabia which is critical in economic development in the state. The strategy ensures that foreign investors implement new business ideas which contribute to the Gross Domestic Product and diversification of income-generating business practices. Moreover, the foreign investment provides employment opportunities for the locals which contribute to the improvement of better living standards of citizens.

Another economic influence of Saudi Arabia seeking to diversify income generating economic practices is the uniform growth of all sectors in Saudi Arabia’s economy. Previously, the economic growth in Saudi Arabia was only witnessed in the oil industry. This led to other industries lagging in advancement. Moreover, the occurrence led to a wide rift between the affluent and poor in society. Through the implementation of the Vision 2030, all economic sectors in Saudi Arabia are developing which contribute to stability in the economy. Furthermore, income-generating diversification has reduced the rift between the affluent and poor in the country thus promoting equality.

Decisively, the objective of diversifying income generating practices in Saudi Arabia has led to major economic impacts in the county. Improved business regulations, enhanced foreign investment, and an updated curriculum are some of the benefits realized in Saudi Arabia through the need to diversify income generating economic practices in Saudi Arabia.

Risks involved in the implementation of the Vision 2030 in Saudi Arabia

The Vision 2030 seeks to eliminate the dependence on crude oil as the primary source of revenue in Saudi Arabia. However, there are certain risks associated with the implementation of the Vision 2030.

Firstly, the Vision 2030 is a transformational based approach. One of the main limitations of a transformational based approach is it may be unrealistic in execution. This would translate into a financial crisis in Saudi Arabia.

Another risk is that the Vision 2030 is capital intensive. The successful execution of the strategy is dependent on the availability of funds which may be a hindrance. Also, the targeted economic practices in Saudi Arabia may be affected by many variables which may threaten the viability of the projects in Saudi Arabia. Lastly, the implementation of the Vision 2030 is focused on the long term. Emphasis on the long term may result in the lack of short-term planning which may disrupt the economy of Saudi Arabia.

Conclusion

Decisively, the research outlines the economic impact of Saudi Arabia deviating from the oil industry as the only source of income in the country. The dependency on the exportation of crude oil is not a sustainable economic activity in the long term in Saudi Arabia. Price fluctuation and diminishing oil reserves lead to uncertainties in the oil industry which cannot support economic growth and development. The formulation of the Vision 2030 was aimed at diversifying revenue generation in Saudi Arabia. The Vision 2030 is a comprehensive framework which seeks to transform the education curriculum, business operations, and investment opportunities to enhance diversified income generation. Tourism, mining, and foreign investment are among the avenues explored in the Vision 2030. Conversely, in the implementation of the Vision 2030, there are several associated risks. High capital, unpredictable variables and unrealistic objectives are some of the challenges. However, through careful assessment and evaluation, accurate plans can be formulated to guide the implementation of the Vision 2030. This will enable the diversification of income-generating economic practices in Saudi Arabia which will eliminate the dependency on the oil industry as the primary source of revenue in Saudi Arabia.

References

Armerding, P. L. (2003). Doctors for the kingdom. Grand Rapids, Mich.: William B. Eerdmans Publishing. Dept, I. M. (2014). Saudi Arabia. Washington: International Monetary Fund. King, D. (2011). Survey: Saudi Arabia: outlook for the oil industry. Oil and Energy Trends , 10-16. Niblock, T. (2007). The political economy of Saudi Arabia. Abingdon, Oxon: Routledge. Nurunnabi, M. (2017). Transformation from an Oil-based Economy to a Knowledge-based Economy in Saudi Arabia: the Direction of Saudi Vision 2030. Journal of the Knowledge Economy , 536-564. Vinogradov, R. (2017). Factor of Ingoing Administration of Saudi Arabia in the Saudi-American Relations. Saudi Vision 2030. Administrative Consulting , 162-168.