Saudi Vision 2030
Saudi Vision 2030 refers to the strategic framework aimed at fostering a fulfilling lifestyle for its society by reducing the reliance on oil in Saudi Arabia and improving sectors such as healthcare, infrastructure, education, and tourism. A flourishing economy, an ambitious nation, and a vibrant society are the basic themes on which the strategic framework is built. The Saudi Arabia vision 2030 was set afloat in 2016 by the Council of Economic and Development Affairs headed by Crown Prince Mohammed bin Salman to build a more varied and sustainable economy. Saudi Arabia Vision 2030 was also launched to make use of Saudi Arabia’s investment authority and its strategic and prudent position as a part of the Arab and Islamic worlds, which are strengths granted to Saudi Arabia by God. The vision is aspired to be achieved by 2030.
SV2030 and clear, consistent long–term goals
A good and efficient strategic plan should have clear and consistent goals. Saudi Arabia’s vision 2030 strategic framework effectively meets this standard by promising better governance and a better future (Thompson, 2017). The Saudi Arabia vision 2030 long-term goals established are based on three pillars. These pillars include becoming part and parcel of the world of Islam and Arabs, initiating a connection for Afro-Eurasia, and growing into an international powerhouse investment. The first pillar, which includes Saudi Arabia’s inspiration to be the heart of the Islamic and Arab worlds, recognizes the strength and power of Allah. This pillar acknowledges Allah as the Almighty and that He has presented to Saudi Arabia a bounty that is more valuable than oil. Also, the nation is a sacred venue whereby a large number of Muslim individuals veer at prayer.
Additionally, the second pillar of Saudi Arabia’s vision 2030 strategic framework that pursues to grow into an international powerhouse investment aims to achieve its mandate by assorting revenues and restoring the economy. This mandate can be achieved as Saudi Arabia bears robust investment competence. Similarly, the final pillar aspires to initiate a connection with Afro-Eurasia and improve Saudi Arabia’s unique strategic location. Through this pillar, Saudi Arabia aims to become a global hub that forms a connection for Africa, Asia and Europe. Saudi Arabia’s robust resources such as uranium, gold, and phosphate, its strategic geographical location, its outreach waterways and its hardworking citizens make Saudi Arabia the perfect nation to become a global hub. Additionally, the energy Saudi Arabia uses does not solely rely on oil.
SV2030 Profound understanding of the competitive environment
A strategic framework that has a great understanding and knowledge of one’s competitors and the market surrounding constitutes a good strategic plan. The Saudi Arabia Vision 2030 strategic framework has a great understanding of its competitive landscape. For instance, due to the constant revolution of the international energy market, the vision has added to its mandate an important goal of the vision to reduce Saudi Arabia’s reliance on oil energy (Grand, 2020). According to the vision, this mandate can be achieved by increasing the use of green energy sources. This practice will, in turn, reduce the market demand for oil, making the vision successful in its mandate. Additionally, the vision aims to promote conducive environments for commerce operations and also bring forth foreign investment to promote the growth of the private sector. Through this mission, the vision aims to enhance competitiveness.
SV2030 Objective appraisal of resources
The Saudi Arabia Vision 2030 strategic framework is efficient and effective as the plan has managed to make an objective assessment of its resources. The vision evidently acknowledges that a large investment in sectors such as healthcare services, energy, education, and infrastructure is paramount if a diversified and strong economy is to be attained. Expanding these key public sectors is one of the targeted initiatives in the Saudi Arabia vision initiative. The vision also sets out to privatize state-owned assets and initiate new taxes as a method of assessing the nation’s financial resources.
Similarly, Saudi Arabia’s vision 2030 acknowledges the importance of creating an efficient environment for business start-ups and growth in order to achieve its goal for improved economic growth. According to research, the percentage contributed by Small and medium-sized enterprises (SMEs) to the GDP of Saudi Arabia is only 20 percent. The contribution in other more developed economies, however, can go up to seventy percent. A challenge that tends to affect the percentage of contribution by SMEs in Saudi Arabia is the implementation of administrative and legal laws and policies that are complex. SMEs in Saudi Arabia also face a challenge of funding as these businesses receive not more than five percent of funding from financial institutions. This percentage of funding is regarded to be far below the required global rate. Additionally, SMEs also struggle with obtaining and attracting necessary skills.
The Saudi Arabia vision 2030 strategic framework acknowledges these challenges and that there is a need to improve on resources if it aspires to meet its goals by 2030. In order to address the challenges faced by Small and medium-sized enterprises (SMEs), the vision aims to improve access to financial funding. By the year 2030, the plan aspires to increase the percentage of financial funding allocation to twenty percent. The vision also aims to encourage thorough regulatory reviews, removal of obstacles and provide opportunities to the youth to better market their products and services with the help of the established Small and medium-sized enterprises Authority. Additionally, the Saudi Arabia Vision 2030, in its mandate, aims to introduce new specialized training institutions and business incubators which will improve and help develop the necessary skills required by start-up entrepreneurs. Also, by partnering up with global stakeholders, the vision aspires to assist in exporting products and services by SMEs and also support their marketing efforts.
SV2030 Effective Implementation
The Saudi Arabia vision 2030 is efficient as the plan has an effective implementation of the set-out goals. The strategic framework has put in place top agencies who have the responsibility of implementing initiatives of set out objectives, goals, and targets. The vision also clearly elaborates on the essence of creating partnerships with other organizations and the private sector. For instance, Saudi Arabia’s vision 2030 aims to partner with the Small and medium-sized enterprises Authority so as to address the various challenges faced by SMEs, such as poor financial funding, inadequate training and poor marketing strategies. Other bodies that the vision aims to partner with include the Council of Economic and Development Affairs (CEDA) and the National Transformation Program (NTP).
SV2030 Success
A good and effective strategic plan should have criteria by which its success rate can be easily measured. Although SV2030 is a long-term plan that is expected to be fulfilled by the year 2030, its success rate and progress can be measured by the use of certain performance measures. One such key metric is job creation. By the year 2023, SV2030 has targeted to create 1.2 million employment opportunities and, by 2030, a total of 1.8 million new employment opportunities. Tracking the creation of employment opportunities can be used to measure both the success and progress rate of the plan. Similarly, tracking the exports of non-oil products can be used to measure success. This is because tracking non-oil exports will allow the vision to know its progress in achieving its target of reducing the nation’s dependency on oil energy.
References
Grand, S. (2020). Assessing Saudi Vision 2030: A 2020 Review. Atlantic Council, p. 17.
Thompson, M. C. (2017). ‘Saudi vision 2030’: A viable response to youth aspirations and Concerns? Asian Affairs, 48(2), 205-221.
write