Saudi King Salman says the kingdom’s Cabinet has approved a plan laying out reform priorities for the next decade and a half.
Advertisement
The king’s son, Deputy Crown Prince Mohammed bin Salman, spelled out some details of the program in a pre-recorded interview aired shortly after the announcement on Saudi-owned broadcaster Al-Arabiya.
Bin Salman has previously said that the reforms will help Saudi Arabia to generate $100bn in non-oil revenue by 2020, and create six million jobs in non-oil sectors by 2030 by focusing on manufacturing, mining, tourism and healthcare. “Privatisation of state-owned companies will reduce corruption because it will initiate accountability”. Saudi rulers have wisely been utilizing the oil wealth to create huge infrastructure in the country and for provision of facilities for their people but it is time the money is used more productively for manpower development, industrialization and diversified investments overseas.
He continued by saying that the aim of “Vision 2030” is not to lower the price of oil; rather, it aims to take advantage of the abilities that are not being made use of.
DUBAI, April 27 Stock markets in the Gulf look set to consolidate with solid support on Wednesday because of firm oil prices and some positive corporate earnings. “To build up the sector, we have set ourselves an initial target of generating 9.5 gigawatts of renewable energy”, according to a text of the vision on state news agency SPA.
But the prince said the reforms would go ahead regardless of a recovery in prices.
Key to the success of the plan is the valuation of Aramco, which the prince said will be more than $2 trillion.
The collapse in oil prices – from more than $100 a barrel in early 2014 to around $40 a barrel this month – has underscored the dangers. “We will need it, but we can live without it”. The investment income from the Public Investment Fund will still come largely from Saudi Aramco, Mr Tuvey said.
Turning the Public Investment Fund into the kingdom’s first sovereign wealth fund, the world’s largest with $2 trillion in assets.
However, the plan also envisaged increasing women’s participation in the workforce, something that has already grown quickly over the past five years, to 30 per cent from 22 per cent.
“The vision is not a dream, it’s a reality that will come true”, he said.
Advertisement
When asked if women would be allowed to drive cars until Vision 2030, Prince Mohammad said Saudi society, not the government, would decide whether to lift the ban on female drivers. Saudi Arabia was the world’s third-largest arms buyer previous year, with purchases of more than $87 billion, yet only 2 per cent was for locally-produced weaponry.
