Friday September 16, 2022 - 08:53:33 GMT
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Saudi Arabia wants to attract more foreign investors
Saudi Arabia, in recent years, has opened up to today's globalized world since its business opportunities have become more involved with the Western countries and have gained much more strength and popularity.
It is no secret that its economic strength is oil; however, since 2016, the government of Saudi Arabia, led by Prince Mohammed bin Salman, has launched an ambitious plan for economic and social change with a clear objective of overcoming dependence on oil.
The plan includes:
* **Vision 2030** - aims at diversifying the economy away from oil. This will involve increasing tourism, developing non-oil industries such as technology, finance, and healthcare, and reducing reliance on oil revenues through increased efficiency and greater use of private sector investment.
* **The National Transformation Program (NTP)** - aims to modernize the country's education system, improve public services, and reform labor laws. It also seeks to strengthen women's rights and combat corruption.
* **The Public Investment Fund (PIF)** was established in April 2017 to invest USD 45 billion over five years into sectors including energy, transport, housing, financial services, telecommunications, health care, and renewable energy.
* **The "ease of doing business"** initiative seeks to reduce bureaucratic hurdles facing businesses.
* **The National Guard** reform program aims to increase the number of Saudis employed in the military from 2% to 3%.
* **A new anti-corruption campaign** involves arresting hundreds of high-profile figures, including princes, ministers, business people, and former senior officials.
2020 was a challenging year for the Saudi economy
This plan wants to see results by 2030. However, it has not been an easy way to achieve it. In 2020 the stock market and the oil price collapse staggered the Saudi kingdom's economy, putting its GDP debt from 5.8 to 30%. In addition, the reserves of gold and money plummeted by 40%, thus losing almost 300 million dollars—a blow to the prince's ambitious plan.
Additionally, other social factors that weaken the economy such as political and social problems:
- Saudi Arabia is a young country, where 70% of its 34 million inhabitants are under 30 years old, with minimal employment generation in the private sector.
- Most economic activity depends on oil.
All this, added to the number of young people, unemployment, and religion, makes a dangerous cocktail for the Saudi economy. But not everything is wrong since, as mentioned at the beginning, Saudi Arabia opened its doors to the West's opportunities and solid international economies.
2021-2022 have been years of strength for the Saudi Kingdom
The war in Ukraine has given a rebound in oil prices in a way the Saudi government did not expect. This has given life to the economy and improved provisions for the coming years, giving strength to that ambitious plan we were talking about, that national investment strategy, which is to diversify the economy of this country.
**Make the country an international investment center:** This means all large or related companies make contracts in the Kingdom of Saudi Arabia, competing with Dubai in a more organized and renewed way.
In 2021 foreign investment increased by more than 250%, the plan's golden moment.
2030, bright future Saudi Arabia wants
The Saudi government plans to invest USD 500 billion over the next ten years. The goal is to create jobs for Saudis and foreigners alike.
The government will focus on the energy, technology, health care, education, tourism, and infrastructure sectors.
Here we will discuss the key points of strategy to attract and make it possible:
- Release the arrival of capital
- Legal security for foreign investors
- Change economic policy to sign free trade agreements with the major international economies.
- More investment in large economic industries such as Apple and Amazon.
- Financing and creating new start-ups and projects involving health, technology, digital industry, clean energy, and finance.
It will also begin to treat its reserves of natural gas and minerals to migrate to the new renewable trends in today’s world.
With all this, Saudi Arabia seeks to boost its economy, being popular with global investors to provide economic and social security. For now, by opening the kingdom's doors, it has taken a giant step to compete with the best and gain the trust of the essential industries in the world.
But there is still a long road ahead, and for sure Saudi Arabia is growing up in development.
Do you want to visit Saudi Arabia?
You must have your travel documentation if you wish to travel to Saudi Arabia. You should know that most nationalities need to have a [Saudi Arabia Tourist eVisa]. But, you don't have to worry, now, this process is much easier, and you're just a few clicks away from it.
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