Saudi Vision 2030

Saudi Vision 2030 (Arabic: رؤية السعودية 2030) is a plan to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop service sectors such as health, education, infrastructure, recreation, and tourism. Goals include reinforcing economic and investment activities, increasing non-oil industry trade between countries through goods and consumer products, and increasing government spending on the military, manufacturing equipment and ammunitions.

Details were announced on 25 April 2016 by Crown Prince Mohammad bin Salman.[1] Plans include 80 projects, each costing between $3.7 million and $20 million.

Goals of the Vision

The Deputy Crown Prince announced that Saudi Arabia will set up the largest Islamic museum in the world, which will be based in Riyadh, to provide an opportunity for non-Muslims to visit.

About the Vision

International speculation

While the plan has been largely used as a platform for Deputy Crown Prince Mohammad Bin Salman Al Saud to push reform within the Saudi monarchy, it has received criticism for being a marketing ploy, as well as speculation on its financial feasibility, from around the world. In 2016 the IMF publicly warned that Saudi Arabia will have no more foreign reserve currency within a 5-year period[2]. The only concrete part of the plan that has been chosen for execution includes a 5% IPO of Saudi Aramco, which is nowhere near the required cash for the kingdom to invest into the non-oil economy, placing it at risk of financial bankruptcy and becoming a failed state[2]. The IMF further warned that the time period set by Crown Prince Mohammad Bin Salman does not reflect a realistic time required for such a transformation. While reservedly endorsing the Saudi intention to address its alarming monetary deficit, it also voiced doubts that the 14-year timeframe "sets a bold and far-reaching transformation of the economy to diversify growth, reduce dependence on oil, and increase the role of the private sector."[3] Analysts in oil prices who see the relationship between the economy and politics in Saudi Arabia and international energy markets say that a sober economic analysis describes the ability to raise such a staggering amount of money as "practically next to impossible, unless crude oil prices see a significant appreciation, or Saudi Arabia plans to sell a higher portion of Aramco." [3][4]. Not only are there speculations about the financial feasibility of the reform plan, there are also social and workforce issues such as the Saudi work culture long having relied on immigrant workers' cheap labor while citizens enjoyed the benefits of a government employment and social benefits program that is now shutting down due to lack of funds. The Week reported in April 2016 that Saudi Arabia could very soon face disorder and social chaos due to a deteriorating financial situation, stating "without oil, the Saudi state has little else holding it together. The result could be yet another chaotic failed state in the Middle East"[5], while Citigroup called Saudi Vision 2030 an obituary for OPEC's role in the world[6].

In 2017 the Saudi government further fueled speculation about the reality of Saudi Vision 2030 and their ability to invest their already rare capital resources into local economies when they signed a 10-year military sales deal worth over 350 billion USD with manufacturers in the United States[7]. The deal has been criticized as a political ploy meant to buy Washington's friendship while the kingdom is struggling to manage already dwindling financial resources at home and its foreign reserve currency abroad.

International standard resort

As a component of Vision 2030, a beach resort is proposed to be built on the Red Sea between the towns of Umluj ( Coordinates 25°03′00″N 37°15′54″E / 25.0500064°N 37.2651084°E / 25.0500064; 37.2651084 ) and Al-Wajh ( Coordinates 26°14′12″N 36°28′08″E / 26.2366058°N 36.4688958°E / 26.2366058; 36.4688958 ) in the northern section of the Hejaz coast[8] The resort project will involve, "50 islands and 34,000 square kilometers in a global upmarket tourism and leisure mega-development"[8][9] and will be, "governed by laws on par with international standards." This will allow women to wear bikinis in the pool and beach areas.[10][11]

See also

References

  1. ↑ Marwa Rashad (24 April 2016). "Saudis await Prince's vision of future with hope and concern". Reuters. Retrieved 24 April 2016.
  2. 1 2 "Saudi Arabia’s Vision 2030 Is Going To Fail". Odyssey. 2016-05-16. Retrieved 2017-05-22.
  3. 1 2 Khashan, Hilal (2017-01-01). "Saudi Arabia's Flawed "Vision 2030"". Middle East Quarterly.
  4. ↑ "How Realistic Is Saudi Arabia’s $2 Trillion Sovereign Wealth Fund? | OilPrice.com". OilPrice.com. Retrieved 2017-05-22.
  5. ↑ "Is Saudi Arabia the next failed state?". 2016-04-26. Retrieved 2017-05-22.
  6. ↑ "Saudi 2030 Vision is OPEC's obituary – Citigroup". RT International. Retrieved 2017-05-22.
  7. ↑ David, Javier E. (2017-05-20). "US-Saudi Arabia ink historic 10-year weapons deal worth $350 billion as Trump begins visit". CNBC. Retrieved 2017-05-22.
  8. 1 2 {cite news|url=http://www.arabnews.com/node/1138636/columns |title=Red Sea resort an essential element of Saudi Vision 2030 |date = 2 August 2017 }}
  9. ↑ "Bikini-clad women in Saudi Arabia? Yes, really...". 2 August 2017.
  10. ↑ "Saudi Arabia to allow women in bikinis at new beach resort". 4 August 2017.
  11. ↑ "Women to be allowed to wear bikinis at Saudi Arabia beach resort". 5 August 2017.
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