Case Study: Saudi Arabia’s Economic and Social Transformation under Vision 2030
- Overview of Vision 2030
• Background: Vision 2030, introduced in 2016 by Crown Prince Mohammed bin Salman, is a comprehensive plan aimed at reducing Saudi Arabia’s dependency on oil and diversifying its economy.
• Key Goals:
• Diversification of the economy by developing sectors such as tourism, entertainment, and technology.
• Increase in non-oil revenues, aiming to grow sectors like retail, infrastructure, and renewable energy.
• Creation of a more dynamic private sector to provide jobs and improve the standard of living for Saudi citizens.
• Development of megaprojects such as NEOM, a $500 billion futuristic city, and The Red Sea Project to boost tourism.
2. Economic Impact
• Oil Dependency: Saudi Arabia’s economy has been highly dependent on oil, with oil exports accounting for approximately 80–90% of the country’s revenue. Vision 2030 seeks to address this vulnerability by reducing oil dependence.
• Diversification Strategies:
• Investments in technology, healthcare, renewable energy, tourism, and financial services are core to the diversification plan.
• The creation of the Public Investment Fund (PIF), which aims to become one of the largest sovereign wealth funds globally, is central to these efforts. PIF has made…
