Andersen

When Prince Mohmmed Ibn Salman launched the Kingdom of Saudi Arabia vision of 2030 in 2016, many political and economical observers doubted this vision. Many thoughts such that such vision was too big for the Kingdom to implement considering different economics and political dynamics and limited human, technological, and capital resources. In addition, many observers thought that such vision prospects and goals will be difficult to achieve because of social, cultural, and religious norms that varies from internationally recognized.

Until today, we can say that there is a huge progress being achieved regrading all the twenty-four projects of the vision. The progress, we can say in general is better than expected despite the constrain and delay of the overall progress because of COVID- 19 pandemic and liter than planned for of oil export revenue. For us as internal observers have been living the kingdom since the launch of 2030 vision, we have experienced great change and strong progress in all kind of daily life activities of Saudi society and business environment.

There are so many examples for such progress and success that 2030 vision contributed to, such as Saudi female employment that has been obvious at many locations and everywhere such as the Kingdom Airports and many governmental agencies. To prove my observation and according to the General Authority of Statistic, in the first quarter of 2024, the labor force participation of Saudi female workers increased in the Q1/2024 by 0.6 % reaching 30.7% of the labor force, furthermore, the Saudi female labor force increased by .08% to reach 35.8%. Such progress will be clearly obvious if realized that as per Census 2011, the workforce participation rate for females is 25.51% against 53.26% for males.

Saudi Labor Force & Employment Ratios 2024

Related	Last	Reference
Employment Rate	63.70	Mar 2024
Labor Force Participation Rate	66.00	Mar 2024
Population including foreigners	32.18	Dec 2022
Unemployment Rate (Saudi and non-Saudi) 3.50 Mar 2024	3.50	Mar 2024

Data source: General Authority of Statistic – Q1/2024

Evaluating the macroeconomic trend for the Kingdom of Saudi Arabia wee can clearly see the growth the economy has sustained through during the past ten years.

Saudi Arabia Economic Growth Trend since 2015:

Saudi Arabia Economic Growth Trend since 2015:

Evaluating the macroeconomic trend for the Kingdom of Saudi Arabia wee can clearly see the growth the economy has sustained through during the past ten years.

Year	GDP Growth Rate	Notice
2015	4.5%
2016	1.9%
2017	0.9%
2018	3.2%
2019	1.1%
2020	-3.6%	COVID 19 Shutdown
2021	5.1%
2022	7.5%
2023	-0.9%	Global Economic Slowdown
2024	2.8%	Forecasted
2025	6%	Forecasted

Data Source: OCED, World Bank, and IMF

As the table above shows an accelerated and strong rebound of economic growth in 2021 and 2022 after the big contraction of 2020 due to COVID 19 pandemic shut down. The Kingdom economic growth for 2024 is expected to be 2.8% (real growth), which is much higher than economic contact of -0.8% the economy experienced in 2023. As for the year 2025 expectations, as per the International Monetary Fund, expectation for growth of the Saudi economy is 6%. With 6% economic growth it is the second fasted projected growth internationally for 2025 after India. The positive economic forecast is mainly based on the expected growth of the Saudi economic activities of non-oil sectors.

Before, we evaluate the progress made or the progress achieved regarding the Kingdom 2030 Visions, we must remember that although the vision is implementing lots of programs, there are major programs that represent the pillars of the vision.

Review of progress the main programs of 2030 visions:

Financial Sector Development Program:

Reviewing the Financial Sector Development Program, we can clearly reliaze that a huge progress is been achived. The Saudi capital market has experienced newly added publically traded companies a lot more than what was targeted in 2023, with number of IPOs added is 43 companies. This progress assure that the program goal to develop diversfied and effective finacial sector that we help in develipng the Saudi economy is mainly achieved. The Saudi Capital Market has seen strong growth and activities that reflects the strength of the financial system of the kingdom.

Ratio	2023 Target	Achieved
Business Active in the Financial Sector	150	216
IPO in Capital Market	24	43
IPO in capital market for small busineses	44%	76.7%

المصدر: هيئة سوق المال السعودي

Fiscal Sustainability Program:

With reagrd to Fiscal Sustainability Program which aims to provide suitable planning and mechanisim to sustain the public financing and achive accurtae budgeting, the non-oil fiscal revenue increaed by more than 250% of 2022 baseline that is because VAT (Value Added Taxes) rate was increased from 5% to 15% in 2020. Also additional revenue were genertaed from the economic activities the Kingdom experienced.

Health Sector Transformation Program:

As for the Health Sector Transformation Program which aims to transform and resturcture the health care sector to be more effective and comperhensiive helath care system that will help all members of the society including all residing in the Kingdom of Saudi Arabia. Key accomplishments include a notable increase in patient satisfaction rates, a rise in the number of qualified nurses, and expanded coverage of primary healthcare services to remote communities. Also, there is a progress in key indicators, such as a rise in average life expectancy to 77.6 years. This achievement is attributed to a comprehensive approach encompassing policy changes, public health initiatives, and improved healthcare services.

Notably, the Kingdom’s adoption of the “health in all policies” principle and initiatives like promoting walking, reducing salt intake, and eliminating harmful oils has significantly contributed to this advancement. Therefore, the Health Sector Transformation Program is considered the cornerstone of Saudi Vision 2030, aimed at creating a vibrant society where citizens and residents
enjoy optimal health and well-being. The program’s success is a testament to the unwavering commitment of the Kingdom’s leadership to prioritizing human health. Huge development has been accomplished with newly establishment hospitals and clinics all over the Kingdom enabling residents of benefiting from such abundant health services to all.

Housing Program:

As for the Housing Program which aims to enable all Saudi families to own and benfit from suitable houses based on thir own needs by providing housing soluations to them at their affotable conditions. Such progress could be clearly summerized by the table below;

Item	2023
Family housing	66,000 family received their houses
Saudi benefited from housing	96,000 Saudi citizen benefited from housing products
Ownership Ratio of Housing	63.74% of Saudi national own their houses
Total government subsidaization	4.1 billion S.R subsidi to housing

المصدر: تقرير الرؤية 2023

Human Capability Development Program:

This program is more of educational and skill building program of Saudi citizen to help them aquire and enhance their intelecual capailities, values, knoweldge, and skills to become more competitive globally. This program is intended to empower the future generation, we must enhance investment in early childhood development. This includes collaborating with the private sector and enhancing existing school facilities to increase access, expand capacity, and broaden geographical coverage program. Some of the achievements of such program include:

• 400+ thousands students enrolled in kindergartens by 2023.
• 34% is the current early childhood enrollment rate, exceeding the 2023 target of 32%.
• 20 + thousands new kindegarden classrooms establshed in 2023
• Tamayouz Digital Platform is being launched
• National test is been implemented
• Schools ranking being adopted

National Indutral Development & Logistic Program:

As for National Indutral Development & Logistic Program, this program aims to transform the Kingdom into an industral powerhouse and golbal logistic hub by inviting giant international energy corporations for mining and exploration of mineral and hydrocarbon and oil & gas. By the end of 2023, the program had initiated 283 projects, of which 102 were completed, accounting for 36%. The program’s sectors contributed more than SAR345 billion to the gross domestic product and increased total non-oil commodity exports to more than SAR206 billion.

National Transformation Program:

This program aims to build, develop and provide the needed infustructure that will create an environment that will enable the public and private sector to achieve the set goal and objetives of 2030 vision. The National Transformation Program (NTP), one of the Saudi Vision 2030 programs, accomplished 34 strategic goals out of 96 goals set to be achieved by 2030. Since the launch of Vision 2030, the tremendous positive transformations witnessed in the Kingdom’s cities and regions have contributed to shaping a new, higher-quality life and providing better livelihoods, driven by the National Transformation Program. The Program includes government digital services that save effort and time, and enhance the role of the private sector. According to a recent report issued by the Program, the digital experience maturity index for government services during 2023 reached 80.68%, and 97% of government services in the same period were digitized. The volume of savings from digital government initiatives last year amounted to $1.6 billion.

Pilgrim Experience Program:

This program aims to provide opportunities for Muslims to perform Hajj and Umrah to the fullest extent and provide enrching and exciting religious experience of visiting the holiy mousqes. This program achivement could be summerized in the following The Kingdom welcomed more than 1.8 million pilgrims who performed the Hajj rituals and over 10 million Umrah performers during the past year. This is considered one of the outcomes of the pilgrims of Pilgrims Program, which is part of Vision 2030 programs.

Regarding Privatization Program:

This program is intended to enhance the role of private sector in the Saudi economy and by providing services and making public and govermental assets available to priave businesses. Such program implemenation will improve service quality, reduce cost, increase compeition, and encourge economic diversity. Major achievements of the Program include the enactment of the Saudi Privatization Law and establishment of the National Center for Privatization and Public Private Partnership (NCP).

Public Investment Fund Prgram:

This program helps PIF to become more active and ingage in process of the diversifaction of the Saudi economy and the development through cultivating and maxmizing the impact of the PIF’s invstments. As of July 2022, the PIF has reached $700bn in assets under management, created 500,000 direct and indirect jobs, and established 79 companies.

Quality of Life Program:

This program aims to enhance and improve living quality of the Saudi citizen by develping, creating, and providing high quality lifestyle within a developed social envernment in the Kingdom. Such opportunities and option of a better qauility of life include participation of citizen in cultural , entertainment, sport, tourism, and urabn activities. creating exciting new sectors and diversifying economic activity As well as, the Program is bolstering local employment opportunities and beautifying cities across the Kingdom. These efforts combine to create a better quality of life for all. The Quality-of-Life Program achieved significant progress in urban design. As a result, the per capita share of popular spaces increased by 132% to reach 6.61 square meters per person. Meanwhile, the number of parks increased to 8,328, including 5,515 playgrounds and 222.9 million square meters of green spaces.

Conclusion:

In sum, Vision 2030 in the Kingdom of Saudi Arabia aims to achieve sustainable development and a bright future through long-term plans so that the Saudi citizens can enjoy prosperity in their future life. Since the beginning of implementing the vision in 2016, successes have emerged in all artistic, sports, and cultural sectors, in addition to the shift to digital services and community empowerment. Since some of the sectors concerned with Vision 2030 require a longer time to reap their fruits, achieving growth in these sectors has not been rapid, and these sectors include mining and renewable energy, as it takes a longer time to achieve results.

It is noted when measuring the results of Vision 2030 that the Kingdom’s economy today has begun to have diversified sources of components and accelerating vital sectors that rely on the strong growth of the private sector instead of relying on oil exports in previous years. Thus, Vision 2030 has achieved its most important goals by diversifying sources of non-oil income and by providing quality job opportunities for the citizens of the Kingdom and opening new horizons and multiple ambitions so that the Kingdom becomes a land of future opportunities.

It is also important not to forget one important advancement economically, which, for the first time, non-oil activity accounted for 50% of real GDP in 2023. The private sector contribution to GDP rose from 40% to 45%. Tourism is the most prominent industry in the Kingdom of Saudi Arabia, as it welcomed 106 million people in 2023, exceeding the desired goal of 100 million by 2030.

The following tables summarize the ratios of 2030 Vision contributions to the economic development that the Kingdom of Saudi Arabia achieved since the introduction of the Vision:

2030 Vision Progress Summary:

Ratio	Base (2016)	2023 Target	Achieved	Performance Level
GDP Size	2,685 billion S. R	3,032 billion S. R	2,959 billion S. R	Short
Non-oil GDP Size	1,519 billion S. R	1,934 billion S. R	1,889 billion S. R	Short
Private Sector Participation of GDP	40.3%	45%	45%	In line
SME loans	2%	8.6%	8.3%	Short
Local Participation of Oil & Gas	37%	59%	63%	Above
Local Military Manufacturing	7.7%	9%	10.4%	Above
Total PIF assets	.72 trillion S. R	2.7 trillion S. R	2.7 trillion S. R	Above
Percentage of Non-oil Export of GDP	18%	36%	24.1%	Short
Unemployment Ratio among Saudi Nationals	12.3%	8%	7%	Above
Percentage of Women Participation in the Labor Force	22.8%	30%	34%	Above

Saudi Arabia Standing Globally until Q1 2024

No.	Ratio	KSA Ranking	Note
1.	Global Competitiveness	17 in the world
2.	General Performance	3rd of the G20
3.	Capital Markets	3rd of the G20	5th Globally
4.	Economic Growth	6th Globally
5.	Government Efficiency	11th Globally
6.	Business Efficiency	13th Globally
7.	Basic Infostructure	34th Globally