Vision 2030 Policy: Saudi Arabia’s Drive to Economic Diversification

Following Crown Prince Mohammed bin Salman’s 2016 bold and ambitious launch of the Vision 2030 policy which highlighted Saudi Arabia’s transformative roadmap to economic diversification, the oil-rich nation appears resolute in its drive to position itself as a leader in innovative, cultural, and economic reforms.

Crown Prince Mohammed Bin Salma (Picture Credit: Britannica)

Standing on the tripodal theme of a vibrant society, a thriving economy, and an ambitious nation, Vision 2030 is galvanizing the nation steadily towards achieving its targets. The government’s total adherence to the spirit and letters of the policy, and the nation-wide support garnered from the burgeoning youthful population of Saudi Arabia, indicate a well coordinated and collective will to achieve the policy’s goals, to enhance the quality of life for Saudi nationals and residents, diversify the national economy, and improve government efficiency and accountability.

Globally marketed as Prince Mohammed Bin Salman’s ambitious attempt to overhaul Saudi Arabia, the Vision 2030 policy stands out as a determined drive to reinforce and diversify the capabilities of the Saudi economy through intentionally demonstrable efforts and determination, to reinforce and diversify the capabilities of the Saudi Arabian economy. There are visible success in the efforts toward turning key national strengths into enabling tools for a fully diversified future. Such efforts are clearly visible in the ongoing transformation of Saudi Arabia’s national energy and chemical company; Saudi Aramco, from an oil producing company into a global industrial conglomerate.

With a mandate to create value across the hydrocarbon chain and, to deliver societal and economic benefits to people and communities around the world who rely on the vital energy it supplies, Saudi Aramco is speedily evolving far beyond its traditional role, to position itself at the forefront of Saudi Arabia’s economic diversification, technological innovation, and sustainability in alignment with the broader objectives of the Vision 2030 policy.

Being the primary source of funding for Saudi Arabia’s public investment fund, Saudi Aramco stands tall as a key player in reshaping Saudi Arabia’s energy landscape and broader strategic interests. Dividends from Saudi Aramco’s numerous investments are being strategically reinvested to support an array of domestic and international projects, to reduce Saudi Arabia’s reliance on oil and, to build a more resilient and diversified economy.

Crown Prince Mohammed bin Salman’s vision for a thriving economy that provides opportunities for all, is also being further driven by the activities of the Small and Medium Enterprises General Authority which was created to regulate and develop Saudi Arabia's SME sector. The programs and activities of the SME general authority, also known as Monsha’at, have led to a significant increase in the number of SMEs from 429,026 in 2016 when the Vision 2030 policy was inaugurated, to 1,141,733 about seven years later, in 2022, according to the authority’s publications. 

Monsha’at aims to increase the productivity of SMEs and raise their contribution to Saudi Arabia’s GDP from 20% to 35% by 2030, and has meaningfully contributed to the development of Saudi Arabia’s investment tools and helping to unlock the economic sector, to create job opportunities for Saudi nationals. The Saudization scheme, also referred to as Nitaqat, which is implemented through the Ministry of Labor and Social Development, aims to increase local employment by requiring companies and enterprises to fill their workforce with Saudi nationals up to a certain level. This has been very successful towards the provision of job opportunities for Saudi nationals, particularly, female Saudi nationals.

The drive towards the social reformation of Saudi Arabian society under the Vision 2030 policy has recorded notable achievements both in the workplace, where women participation in the workforce is tracking well towards the 30 per cent target set for 2030, and in sports, tourism, entertainment, arts, and culture.