FRESH BOOST TO SAUDI VISION 2030 WITH NEW DECREES

A raft of new Saudi royal decrees, including the appointment of new leadership in key positions, have been announced in September in a bid to streamline programmes to achieve the kingdom’s Vision 2030 targets.

Also in late August, the government issued royal decrees to transform the Riyadh Development Authority into a Royal Commission as part of efforts to turn the capital city into a world-class business, leisure and entertainment destination, and one of the three Saudi global cities, as outlined in Saudi Vision 2030.

The commission, which will have a board of directors chaired by the deputy prime minister, will focus on major national projects.

The kingdom also issued a timely order to establish the Saudi Authority for Data and Artificial Intelligence and the National Center for Artificial Intelligence, which will focus on the innovative field of artificial intelligence and big data that have been transforming economies across the world.

Another critical royal order focused on establishing the Ministry of Industry and Mineral Resources – separating from the Ministry of Energy, Industry and Mineral Resources, which will be renamed Ministry of Energy.

The Ministry of Energy will assume the powers, tasks and responsibilities related to the Ministry of Industry and Mineral Resources until the end of the current fiscal year, after which the new ministry will start its operations at the start of the next fiscal year. Bandar bin Ibrahim bin Abdullah Al-Khorayef has been appointed minister of industry and mineral resources.

Saudi Arabia launched the USD 427 billion industrial development plan, which would get added impetus under the newly minted ministry. The development plan is a central pillar to the 2030 Vision. The kingdom has significant mineral resources, including aluminium, phosphate, gold, copper, and uranium. Output and exports are already growing quickly and by 2020, the government sees a potential contribution to GDP of nearly SAR 100 billion (up from SAR 12.5 billion in 2018), as well as 90,000 jobs in the mining sector.

Other important decrees include the appointment of Mazen bin Ibrahim bin Mohammed Al-Kahmous as chairman of the National Anti-Corruption Commission at the rank of minister.

Veteran oil executive Abdulaziz bin Salman bin Abdulaziz Al Saud was appointed minister of energy.

These appointments and strategic changes are all being implemented to ensure that the kingdom pushes forward with its Saudi Vision 2030 agenda, which requires an overhaul of the economy with virtually every sector expected to contribute to the goals of a diverse and dynamic business destination.

In September, the Saudi Arabian Military Industries (SAMI) also announced the completion of the company’s executive management team, featuring distinguished national leaders and international experts specialised in the military industries, as well as the financial, administrative, industrial, and strategic sectors.

“The objectives of the Saudi Vision 2030 provided a strong source of motivation for these esteemed industry leaders to join the company and serve as key enablers of the programme by being part of the emerging defence ecosystem in Saudi Arabia. The team will work within SAMI’s integrated industrial enterprise to develop and support the military industries in the kingdom and play a key role in increasing the domestic share of military equipment expenditure to 50% by 2030,” said Dr. Andreas Schwer, CEO of SAMI.

Under Vision 2030, specific targets include increasing the private sector’s contribution to GDP from 40% in 2018 to 65% in 2030, enabling SME development, and growing the economy from the 19th to among the 15th largest economies in the world. The kingdom is also working towards 13 vision realisation programmes that include blueprints for privatisation and housing.

In a bid to raise foreign direct investment to 6% by 2030 (from 1% currently), the authorities have taken important steps to strengthen the legal framework and reduce barriers to doing business.

“The bankruptcy and commercial pledge laws have filled important gaps in the legal infrastructure. Thirteen cases are moving through the bankruptcy process,” according to the International Monetary Fund. “FDI licensing requirements and procedures for starting a business have been streamlined, the negative investment list narrowed to accommodate priority investments under Vision 2030, and the efficiency of port clearance improved.”

With new appointments and leadership in place, expect the Saudi Vision 2030 programmes to accelerate over the next few months.