| The Saudi Vision 2030 programme continues at a steady pace. While the authorities are focused on supporting the economy in the short-term, the measures they have taken are aligned with the overarching goals of the Vision 2030 initiative.
Indeed, the focus on Vision 2030 over the past four years had already created a nimble government setup able to pivot quickly and respond to the pandemic.
“On the performance of the Saudi economy during the pandemic, Saudi Arabia effectively and quickly dealt with COVID-19 from a position of strength,” Mohammed Al-Jadaan, minister of finance and acting minister of economy and planning, said at a recent Euromoney conference.
“Over the past years, Saudi Arabia started Vision 2030 with a clear plan of diversifying the economy, making sure that the volatility that oil market brings to its plans and economy is controlled. The private sector has been enabled to diversify the economy. The government invested heavily in technology infrastructure. The reform that Saudi Arabia started a few years back, helped to have a quick and positive response when the pandemic started.”
In a way, the pandemic has accelerated the kingdom’s push towards digitisation, ecommerce and technology, which were already the cornerstone of the new knowledge economy envisioned in the 2030 document.
Focus on digital healthcare and online education during the pandemic means Saudi citizens are already getting comfortable with remote services.
Ecommerce also received a big push when the Communications and Information Technology Commission (CITC) announced licenses for six new parcel delivery companies in the kingdom.
"CITC has already begun implementing our new strategy and, through careful regulation and encouraging healthy competition, we aim to provide postal users in Saudi Arabia with efficient and affordable services,” noted CITC governor Mohammed Al Tamimi. “Our new mandate rests on three key pillars: assisting Saudi Arabia’s digital transformation, promoting investment and protecting consumers. Opening the door to new companies fulfils these goals by improving e-commerce usage, positioning the Saudi postal sector as an attractive investment opportunity, and incentivising providers to give the best possible postal services to users." A key driver of Vision 2030 is the creation of new industries and sectors that can help diversify the economy, create well-paying jobs and attract new investment in the country.
The kingdom’s mining sector has already had a promising start and it received a major boost this summer when the Cabinet approved a mining law in June.
The law, which will come into effect in the fourth quarter, aims to build up the mining sector to be able to generate USD 64 billion in GDP contribution from its current level of USD 17 billion, and create more than 200,000 new direct and indirect jobs by 2030.
The new law aims to tap the wealth of non-oil and natural gas resources in the country.
“Saudi Arabia has a healthy reserve of untapped mining potential valued at SAR 4.88 trillion (USD 1.3 trillion), with 20 million ounces of below ground gold reserves. The kingdom currently accounts for a sizeable 37.9% of the Middle East and Africa’s SAR 60 billion (USD 16 billion) metals and mining industry market,” according to Invest Saudi.
The kingdom is home to 48 minerals of which around 15 are commercially viable. Saudi Arabia also has some of the largest reserves of phosphates and tantalum, used in a range of electronic equipment such as capacitors and high power resistors.
While some of the biggest miners in the world such as Alcoa and Barrick Gold already operate in the country, the authorities expect the Saudi Arabian Mining Company, or Ma’aden, to play a crucial role in meeting the country’s 2030 mining targets.
In June, Ma’aden, said its subsidiary Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC) has signed new financing agreements for USD 2.3 billion with leading local and regional financial institutions. The proceeds from these agreements will be used to pay down existing loans.
“We are proud of the strong appetite from banks to lend to Ma’aden MWSPC during the current challenging market conditions,” said Mosaed Al Ohali, Ma’aden’s chief executive officer. “This is a reflection of our financial strength and growth prospects and the durability of our assets. With abundant phosphate deposits in the north of Saudi Arabia, Ma’aden is well placed to build on its position as a leader in the global phosphates market and make Saudi Arabia a major contributor to global food security.” |
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