Saudi Arabia Vision for Life After Oil: An Investment Driven Economy
Saudi Arabia has always been one of the most important countries among the GCC countries. The decline in the oil market has affected many economies and Saudi Arabia is one of them. Countries with the economies depending on the oil industry have moved towards alternatives and Saudi Arabia also made a plan to move forward. The Saudi Arabia’s 2030 vision is the sign that Saudi Arabia knows where it’s going. In April of 2016, the Deputy Crowned Prince Mohammad bin Salman introduced Vision 2030 for the first time. This program was to take some big steps towards the development in the Kingdom on a larger scale.
The aim of this vision is to attract investors to the country. Because of the geographic importance of the country, it is easy to exploit the opportunities in favour of the kingdom and make a strong Kingdom a stronger economy. The Crowned Prince has the vision to make the Kingdom a tolerant country with Islam to remain the constitution but the moderation in the methodology of application. The plan outlines 24 specific goals for the Kingdom to achieve in the fields of economy, social and political. The Vision is to take strong initiatives to give rise to the industries of manufacturing, renewable energy, e-governance, culture, entertainment, and education(Jurgenson, Bayyari, & Parker, 2016). Tourism is also a field that has not been given enough importance. Vision 2030 also focuses on the advancement of this sector with the increase in international investments and opportunities by the Government (Ekiz, Öter, & Stephenson, 2017).
- Saudi Arabia is an Arab state, which is the fifth largest state in Asia. It is an oil-richcountry which has large reserves of oil involved in different type of explorations. The discovery of oil reserves was carried out on 3 March 1938. Now it is the largest oil exporter and reserves are constituting in the areas of second best in the world(Blazquez, 2017).
- The historical importance of oil in the Saudi economy is worth discussing. Oil has supported the economy of the country for so many years and the strong going of Saudi Arabia along with most of the GCC countries was the blessing of oil reserves.
- The economy of Saudi Arabia is dependent on the reserves of oil. Their growth is dependent on the reserves which are carried out from the export of oil. Mainly all the part of the economic sector is relative to the distribution of petroleum factors(Rehan, Demirbas, Rashid,, Budzianowski, Pant, && Nizami, 2017).
- The decline in the market of the oil came with big problems for the country. This decline came when the westerncompanies discovered new oil reserves in the form of explorations. Theyentered the market with Saudi Arabia. Most of the sales had a significanteducation in anamount from the fact that other countries were marketing the oil products(Alsubaie && Jones, 2017). It used to be the biggest source of strength for the economy and with the decline in its value countries like Saudi Arabia faced a big blow.
- Since there has been a changed in oil prices and Saudi Arabia Economy has been changed with the advent of different reserves, therefore the rulers have planned for the bright future in the vision of 2030 framework(Germeraad, 2017).
- Saudi Vision 2030 was launched in 2016 by Deputy Crowned Prince and it said to be the step for the Kingdom(Salameh, 2016). The main reason for the vision was the growing oil problems and the issues which related to different changes. There was a sense of thought from different think tanks that some part of the areas should be addressed with long-term
- Vision focuses on taking the Kingdom towards the path which is followed by the strong economies of the world. Vision 2030 is not just about making the Kingdom’s economy stronger but it covers many aspects and plan is to bring reforms in multiple fields and sectors(Nurunnabi, 2017). This vision has different types of additives involved in its frame of events. The sense to find an oil-free source will allow adifferent type of areas incorporated in the stuff. The life after oil was a serious thought which helpsthe topmanagement people to think about the alternatives and provide a specific plan related to the areas of society (Fischer, 2017).
- Vision is broader than many people think. It is to make the Kingdom the strongest among the Arab countries and states. Now in taking this decision towards little further involves adifferent part of the objects related to policies and strategies.Many of the high stakeholders have planned to make the possible system for future. There isa different kind of assumption being made in order to find an alternative for oil reserves. These reserves are continuously being depleted. That’s why the visionfor the future is changing according to different goals(Nonneman, 2017).
- Saudi Arabia is a growing Arab nation. Saudi Arabia, a vision related to oil reserves and independence in the running forecast has made a serious look at the future forecast of the Kingdom. Many think tanks have started making a different kind of studies related to the future. This vision was created by the Prince of Saudi Arabia. Mohammad bin Salman who was crowned as a prince in the government has made a vision about 2030. He saw a growth factor in the kingdom past features. An Englishmen sought out a problem related to oil reserves and raised the question over the independent nature of fuel(Banafe & Macleod, 2017).
- ‘What can be the possible impacts of the vision i-e economic, social and political’ is an important question to be addressed. There definitely are impacts of the Saudi Vision 2030 on all the fields whether it’s economic, social or political. It will increase the external investments. It will increase the living standards of the residents. Residents are the top priority for the government because in adding adifferent type of systems there will be a direct effect on people.The life of the inhabitants will also be affected by the economic considerations there are different types of the introduction of technology which will improve the lifestyle and make a different type of luxury available in terms of less damage to the environment (Hall, 2016).
- Society will also get a different edge form the vision because the people constitute society. They are the main pillar of the whole system. If their situation is changed then directly the reforms are gathered in the same way(Khashan, 2017).
- It will definitely bring strong political reforms as well so that the environment in the country becomes more welcoming and fertile for the foreigners. There will be an increase in investment opportunities and different type of people will be attracted to add money related to the different projects. Foreigners will be the main key to blooming the environment. The main balance in the system comes from different political reforms. These steps are taken by the government when there are different chances of increase in investment opportunities (Kamrava, Nonneman, Nosova, & Valeri, 2016). The political reforms will also make the system of the government smoother.
- The impacts are widely presented in different types of categories. These are the important factors which are to address. Due to different series of question, it is an important objective to list all the finding and aspects of the vision and how the new policy will come in the context of social, economic and political areas(Al-Zahrani, 2017).
What were the benefits related to Saudi Arabia. These reserves provide support related to different type of events. This is the main position for the economy of the kingdom .They have armed a lot of money and developed the desert for the whole world. This reserve gave them wealth to enhance their economic stability and build a strong business which is based on the same sources. There are different polices and strategies taken by the crowned prince to gather supplement about the ideas.
The drawbacks were the crisis related to fluctuations in petrol process .In the international market at first Kingdom of Saudi Arabia was the leading exporter of oil. Many economies of countries were dependent on the same strengths to gather oil reserves. Therefore its role was pivotal in the part of Asia. As the oil reserves got depleted in reputation of events there was some consideration regarding the future. There was no planning done for the sources which will prove beneficial to the government. Then there was a mission mad e to release a vision of containing the future in the are which will contain the future and give up way related to different type of sources which are oil free. Thus a formulation of plan was made and it helps the kingdom to move ones tap further in course of events.
- Oil as a source of money
Importance of Oil in the world economy especially in the economy of the GCC countries made them dependent on one industry to take them forward. Saudi Arabia has the oil reserves which are the second largest in the world. They use this factor for different kinds of money making systems. They produce and export oil to different parts of the countries. Their oil reserves are related to one-quarter of the total record in the world. The main reason for this feature is the storage does not only combine with high pressure but the reserves are present close to Earth Surface. This is the reason they are easy to extract from the environment and gather 95% of the funds including the major share of Saudi Arabia (Seznec, 2016).
There is another source of a factor which included the money making policies of Saudi Arabia. They produce all the oil reserves as companies with their leading oil company Saudi Aramco.When the oil prices were raised in the year 2014, Saudi Arabia gathered a lot of money. Money making reserves are important for the company systems. Without the Oil, there are different crisis involved in countries. Amajor portion of the transport needs fuel for energy that’s why their significant effects being discussed in the profit sector. The private sector also uses this gift as to prove money to the government. This sector employee various activities which aim to generate money for significant reserves (Adham, 2014).
There is another factor which related to oil as a source of money. This thing involves a different type of variables involved in raising the GDP level.It also directly relates to the policy relating financial increment of the sector. The increase in GDP levels is termed as ahigh percentage to provide different areas related to investment. (Gause, 2014)
Oil is proved as a source to generate income which helps the Kingdom of Saudi Arabia to move in the fact related to issues considered as investment capital.
According to recent reports, oil and gas sector supports half the GDP of Saudi Arabia. From the recent report, it is suggested that oil and gas sector in Saudi Arabia has a vital role in its energy sources. Therefore this is the main cause which forms the area relating to the different frame of events.The main scenario was the oil dependency of the government. It is clear from the past records that as the year pass there is a surge in the need for oil for different kind of purposes. These purposes are related to the yearly increase in supply. The static form the annual report states that in terms of events there is an increase in oil need from the running year of 200 to year at present. This dependency was proving a sort of benefit (Indraganti && Boussaa, 2018).
- Decline of the Oil market
The impact of the oil prices in the global market was strong.Second, due to the falling oil prices,there is a constraint on the economy of Saudi Arabia. Saudi Arabia had to witness a decrease in trading as the prices decreased in the year 2014 and continued further. Her major shift was to find a source which can overcome the burden of oil and provide anew source which may be cheap and become effective without any disadvantage (Rehan, Demirbas, Rashid,, Budzianowski, Pant, && Nizami, 2017).
The surge in prices made disastrous effects in the economy of the Arab. They expected a loss of rupee. Their growth stated to come down as the major part of the economy was dependent on the oil reserves. These were the condition which formed the basis of a wave to explore different areas and gather new ways of oil and forms (Thompson, 2017)
‘How this phenomenon affected the economic situation of the GCC countries especially Saudi Arabia’is the real question to be addressed because these are countries which depend on their oil reserves. The impact of oil prices on GCC countries is also a separate topic which needs to be highlighted in this context. Many GCC countries have noted that this fall will continue to act in the frame of events listed and there are points related to these areas.
First, the supplier keeps on producing oil reserves and do not cut off their oil reserves.This is the areas which relate to present scenario. Most of the company has gone bankrupt in practising the old techniques and this had a negative effect on the economies of the whole country (Thompson, 2017).
These oil reserves are important for the government just as to relate the fact that whole of the market is dependent on oil prices. If the prices fluctuate then there are issues which relate to the causes related to the areas which are significantlydependent on the kingdom economy.
- Changes in Political leadership
The recent changes in the political scene have been a source of relief for the Kingdom. The Deputy Crowned Prince of the Kingdom Mohammad bin Salman brought many new ideas and proposed changes in the system. The leader of the government has devised different terms for the Saudi Arabia. He planned the long-term developments in order to get a different perspective of economics. The previous leadership enables the things related to the fact of different conflicts in the entire region. Prince had been a reformer in this area including the steps which were taken to gather about the difference in the events.
The strategy was improved in the way the things were gathered from the frame of events. Prince introduced the idea of privatization of American 2 Trillion dollars to develop new states incorporating different thing s in the past (Al-Zahrani, 2017).
The crowned prince stated a though to gather different resource’s based on surveys on information.A plan vison 2030 was introduced in the mainstream to develop this part as a source to increase the economics of the country and develop a standpoint. The thought of the emperor life after oil includes different type of theories and practices. They are planning that life after oil will be easy as compared to the facts of oil reserves (Fischer, 2017).
- Role of Saudi Arabia in Regional Politics and Its Impact on Economic Situation
To answer the question of how are the terms of Saudi Arabia with other GCC countries it is important to understand how the regional politics work in the GCC countries. Saudi Arabia had very complicated terms with countries like Iran, Iraq and Qatar. It is said by the analysts that it is actually a power game which is happening between the GCC countries.
That is the reason why there have been groups of countries making policies against each other and sometimes even helping each other’s enemies. Indulging in such activities has been a barrier between the GCC countries and success. Now countries have understood to some extent that they can dominate other countries and emerge as a strong state needs to have strong planning to support economy, trade and tourism.
Saudi Arabia has an important factor relating to the Asia part of political stability. This thing is explained on the base of different points and scenarios.The active political tensions between different countries like Syria, Yemen and Iraq has made a different type of ties according to the scenario.This has disturbed the power balance and there are gloomy conditions in the state (Thompson, 2017).
Gulf countries came up Corporation Council for the Arab States of the Gulf which was later called Gulf Corporation Council (GCC). This Council was made to strengthen the economy and stable political situation of the Arab countries. This Council even tried to make one currency for the GCC countries but couldn’t succeed. Though is smoothen relations between Arab countries and promoted trade between GCC countries. This Council couldn’t perform because of the differences between some Arab countries. Right now Saudi Arabia has strongest trade relations with China.
The main function of GCC was to provide unity to different members which were the members of the organization. This unity was carried out to different kinds of support and services system. The role of Islamic countries was present in the area which continuously rotates. The main purpose of this agreement was to improve the trade between different countries. This idea was the start of the whole system which came up to share different oil reserves and become a balanced state. Saudi Arabia role is defined as the most vital role in part here there was a different type of things related to the purpose of different states. These things are the part of areas which comes in the strength of the Saudi Arabia.The main source of events was the vision of moving forward (Thompson, 2017).
GCC establishment was the step in devising a step in the vision 2030.This was due to the fact that oil had been a unique reserve which different type of countries focuses. The key importance will lead to different policies and information’s relating to future impacts. The unity of this organization is related to the fact as the need of oil is increased from the daily expectation, the countries have used their potential to gather all the resources linked with the futile environment. This relationship will help to gather potential benefits from investors which will focus and developing policies relating their business goals. Therefore the relationship of different gulf countries was a good initiative by the Saudi crowned king.
Deputy Crown Prince is quite hopeful about the future of the Kingdom. He is of the view that Saudi Vision 2030 will make the Kingdom a strong entity. Government is hopeful regarding the success of the developmental policies they have made. Kingdom sees itself as a strong political entity in the GCC countries with strong trade relations with other GCC countries.
Now relating the policy of King as stated in the mentioned paragraph. His main strength is to focus on the activities linking to its vision which is involved in the area so the developing a new policy. This policy will be quite instrumental. He hopes that all the variables will be carried out in a different care and many of the things will be achieved in the aftermath of success. This is the most development in this area (Seznec, 2016).
When a leader stands from the first and present different kind of ideas related to growth then there is less chance that Country will face a different type of issues with the planning sector. The planning sector is the most important one which emphasizes on the vision of 2030 as the key source of improvement (Thompson, 2017).
- Dependence of Saudi Economy on Tourism Industry
How much Saudi government depends on the tourist activities? With the decline of the oil industry can the industry of tourism rise as a strong source of income? These are the frequently asked questions.
The answers to this question will provide a deeper insight towards the vision of new techniques. This is because many GCC countries switched from dependence on oil to some other industry. There are two different reasons for this behaviour first is the factor which incorporates the term related to different type of events. When a specific industry is getting an attention than its advantages out weight the other areas. This is exemplified as when a major source of income is being carried out by the similar industry there is a change of pattern in the people (Rehan, Demirbas, Rashid,, Budzianowski, Pant, && Nizami, 2017).
Because of the huge number of the pilgrims visiting the country every year, it is a feasible option to work on the tourism to earn capital.The Saudi government has strengthened the policy to increase the rate of tourism in past decade. The amount of pilgrims is adjusted according to the number of pilgrims that the Kingdom can facilitate.
The use of tourism industry is the specific step towards changing the pattern related to the oil-dependent economy. This can be generalized in such a way that in the Kingdom of Saudi Arabia tourist are giving an importance to the sector. The government can switch back to this industry and change its use on oil reserves. It will provide a stage to think about a life where oil is not present. The tourism industry is a new scheme made for the idea (Rehan, Demirbas, Rashid, Budzianowski, Pant, && Nizami, 2017).
The number of pilgrims visiting the Kingdom is a huge source of income and this industry can become a dependable source of income. This income deals with different kind of sources where are the money making factors. This is the reason why the tourism industry is getting various rights related to the country. It might become an alternative for the Saudi government to earn their capital. Though this is not an alternative to the oil the government is investing a fair amount of money on it to get satisfactory numbers. Saudi Arabia’s Public Investment Fund (PIF) is forming real estate development firm to boost the capacity of the Mecca and Medina to facilitate more pilgrims than before. Almost $180 billion has been allocated by the government of Saudi Arabia for the urban development to manage the facilities for the visitors. New hotel s are being constructed near the Grand Mosque to increase the capacity of the area.
There are other sources for the tourism which should be made visible by a different type of government which apply the same case in the contest. Different museums and heritage sites are responsible for a news revenue if the proper idea is taken by the government in the vision of 2030. This can be explained that when culture sites are preserved by spending money they will promote the tourism sector and influence the economy of Saudi Arabia. This thing will add in a positive way for the industry (Nonneman, 2017).
Now a new idea nets new instructions and policies to be motivated so that these things are listening in the areas with outlining relative factor. The initiative will be to list all the potential areas which are available for survey. Second is the succession of events related to causes? If the area is specifically related to the cause of vents then it is judged and planned with different visions of the future (Black, 2016).
What were the benefits related to Saudi Arabia?These reserves provide support related to different type of events. This is the main position for the economy of the kingdom.They have earned a lot of money and developed the desert for the whole world. This reserve gave them wealth to enhance their economic stability and build a strong business which is based on the same sources. There are different policies and strategies taken by the crowned prince to gather supplement about the ideas.
The drawbacks were the crisis related to fluctuation in petrol process. In the international market at first Kingdom of Saudi Arabia was the leading exporter of oil. Many economies of countries were dependent on the same strengths to gather oil reserves. Therefore its role was pivotal in the part of Asia’s the oil reserves got depleted in the reputation of events there was some consideration regarding the future.There was no planning done for the sources which will prove beneficial to the government. Then there was a mission related to future in the area,which will contain the limitation’s and provide a new path for thought. Thus a formulation of the plan was made and it helps the kingdom to move ones step further in course of events (Adham, 2014).
- Saudi Vision 2030
April 25, 2016, was when the Deputy Crown Prince Mohammad bin Salman unveiled the plan of making Saudi Arabia great. This ambitious package covered all the fields including social, economic and political. The main three pillars of success defined by the vision are a thriving economy, an ambitious nation and a vibrant society.
Thriving economy will be gathered through the activities of the members. Vibrant society and the ambitious nation will be built in a different way through zeal and zest. There are issues related to different type of societies. These three pillars are focused on the main points as they constitute the vision of the whole society. The plan is almost applicable to the vision in the areas (Blazquez, 2017).
The plan is to exploit the geographical position of the Kingdom to get economic benefits. This will be done by gathering different events in the area, different kind of factors are involved in the quest when points are gathered through the sequence. Saudi Arabia lies at the heart of the Arab and the Muslim world which can work great in favour of the state. Another geographical advantageous point for the Kingdom is that it links three continents and can participate as well as facilitate the trade between them and can earn capital out of it.
The importance can also be mentioned in a way as that Saudi Arabia is located at a place where most of the trade is carried out. The relationship of the business environment is related to the fact that things move in different scenario as compared to demographic regions. This will help the relations according to the Gulf countries. All the case of studies will be carried out in a way which links with the fact of gathering issues.
- Saudi Vision 2030 has a Goal to Empower and Ambitious Nation
- The plan is to raise the ranking of Saudi Arabia on the Index of E-Government Survey from the 36th position and make it to top 5 nations. It is important because of the fact that the information technology is moving forward at high pace and achieving new levels. In this modern world providing the facilities to people at the click of a button is what the governments are trying to achieve and that is what the Kingdom needs to achieve as well. To compete with the modern world it is important to adopt the new technologies being invented and acquire them to facilitate the people. The Saudi Kingdom has already started working in this field like other Middle Eastern countries but according to fulfil the target set in the Vision 2030 the government will have to put much more work in the field. Many new plans need to be designed to make the long processes easier for the residents. This approach will not only give better rank to the Kingdom in the UN survey but also will make the lives of the residents much better and that will obviously give out a positive message regarding the kingdom.
- It is one of the main focuses to reduce the dependency on the oil industry and that is why the revenue from non-oil assets is planned to be increased from SAR 163 billion to SAR 1 trillion. This is to make sure that the economy is not volatile and there is a stable plan for the economy(Cairncross, 2015). Earlier the biggest mistake made by the government was to rely on just one source of income to run the economy which proved to be not a good plan in the end. If the government would have made such decision earlier it would be much more beneficial for the country. It is high time that the Kingdom focuses on alternatives like many other Gulf countries did like Dubai. The Saudi Kingdom can work in multiple fields like tourism and international trade that might make the situation much better in the favour of the government (Blomstrom, 2014). The government needs to make policies which favour and welcome the foreign investments and that will help the government to build a sustainable market and compete with the challenges of globalization. Globalization has made the market much bigger for the investors and the Saudi government needs to attract them to come and become a part of the economic change the Kingdom is trying to make. The government needs to regulate the interest rates in the market in order to attract the investments. The government might work on building other sources as well. for example, winning new friends in the market and do joint ventures with them which help the economy of the country and help the government achieve the set goals by the year 2030 (Claessens & Horen, 2014).
- The plan is to raise the ranking of Saudi Arabia on the Government Effectiveness Index from 80th position to 20th This is an important and difficult challenge to be achieved. This has been an issue that the government has faced since forever and this is high time that the government proves its effectiveness(Morales, Bloom, & Caron, 2017). The government needs to make strong policies and make sure that the policies are implemented properly and effectively. This is important for the execution of vision because if the implementation of the policies made by the government is not effective this might sabotage the whole vision. in past, the government had a strong influence on non-government entities on its decisions and policies. If this continues to happen it will be impossible for the government to take decisions that are well-thought and planned and in the favour of the Kingdom in long run. The non-government entities which made the calls in the past made emotional decisions which ruined the political and social situation of the Kingdom. The effectiveness of the policies of the government is the measure of good governance (Morrison, 2014). This initiative will make the position of the Kingdom stronger not only in the ratings of the UN but also in the eyes of International Banks and investors and that will cause a rise in the investment coming to the state.
- The plan is to raise the contribution of the non-profit sector to 5% of the GDP from the current low level of 1% of the GDP. This is an important initiative because the non-profit sector is what facilitates the public most. This sector strengthens then it will definitely mean that the residents are getting good facilities and care. This increase in the investment will be a gift from the government to those who do not get much help directly from the government and need more support in their lives(Salamon, 2015). This will increase the living standard of those who suffer from small problems in their daily life and government cannot help them directly. So this initiative will make sure that the government is providing enough help and support to those who need it. This will not only help the residents and help win their trust and confidence on the government policies but also will make the image of the Kingdom more positive and will help the society to become a better one. It is said by experts that the non-profit organizations are the ones responsible for the positive social changes that appear in a society (Michaelidou, Micevski, & Cadogan, 2015). The social situation of the Kingdom needs much help right now and that is why this initiative will have a strong impact on the society. Social norms and values get importance because of these initiatives and sense of humanity and love for the others prevail in such environment. People learn to help each other in the time of need and this forms a strong message for the future generation.
- In 2016, the number of volunteers was 11,000 and the plan makes this 1 million per year in the coming years. As the social activities will increase and the sense of social responsibility will also prevail in such an environment. This is important that people understand the importance of volunteerism and make time to become part of something bigger than them. The government will plan to provide more opportunities for people to volunteer and come forward to support the humanity(Nickel & Eikenberry, 2016). This will help educate people what it is like to work like a team and a nation. This will help in teaching people how working for a positive cause can give internal satisfaction. This is important to build a positive vibe in the society and make sure people get out enough time from their lives to help others.
- The plan is to help household save up to 10% of the total household income which is 6% currently. This is a well-thought and extensive plan because it will help the common man on the very basic level. This will raise the living standard of the common This will help an ordinary citizen manage the finance in a better way and that is what makes the economy of the country stronger. This will decrease the level of frustration in an ordinary man which is normally seen in most of the societies. This is the white collar people who face most of the trouble in managing the finance and running the home in a stable way. This initiative will consider the needs and expenses of middle-class people and then the government will be able to take decisions which favour the lifestyle of the common man. This will help the government build a sense of confidence and trust in the residents and this will help the government regulate and take control over the products being sold. This is important because otherwise the manufacturers and suppliers do what they find profitable for themselves but with the government taking interest in the matter they won’t be able to make irrational decisions.
- Social, Political and Economic Impact of the Vision 2030
- Social Impact
In Saudi Arabia, the social contract is basically a fact that the Saudi government made for the citizens. When it is said that the Saudi government made the law it directly means the family of Al-Saud because they have been ruling the region for many years now. So any change in the social contract can only be brought by the Royal family. The social contract between the government and the citizens depends upon which group does the citizen belongs to (Bader & Schuster, 2015). The government has a different code of conduct for the clerics, businessmen, the royal family and tribal heads. The treatment is different for the different levels and this created the lack of equal opportunities for a different level of people. This discrimination has been a source of trouble for the Kingdom for decades.
This region of the world has some strong customs that have been followed by the citizens for decades strictly. The need of social transformation is necessary with the modernization of the world. For this, a program was definitely needed. The strict rules and regulations made the society greedier for the change over the years (Cole, 2015). The religious strictness from the religious clerics was what shaped the society of Saudi Arabia over the years. The standards of morality were dictated by the clerics and were implemented by the government. That caused to the kingdom to stay behind when the rest of the world moved forward. The religious clerics were so strong that even they managed to stand against the changes made by the government to modernize the society.
Another social situation raised in the society when in 1938 the oil was discovered by the Kingdom and it was thought they have enough reserves to do anything. That was the time when the government started to take some irrational decisions and those decisions made the social life of the citizens worse. With the incoming amount, the government decided to redesign the cities. They had all the wealth to do so but the lack of planning ruined it (Al Mallakh & el Mallakh, 2015). The cities were developed with the clear perspective of how this will raise the standards of social life of the people living in it.
The Kingdom faces biggest challenges ever in the history as now is the time the government has to make tough calls otherwise they might lose the stability whether it is social or economic. Kingdom has become a state where the citizens do not have the right to vote, not every citizen can apply for a driving license and there is still a lot of gender discrimination which shows the social behaviours of the society. On top of that, the oil situation of the Kingdom is also not as strong as it used to be. On top of that, the oil price instability also came up as a challenge for the government (De Bel-Air, 2014). The desperate need of improvement in the society is rising every day. That need is what led to the Vision 2030 to take place and address the problems that exist in the society.
Implementation of the vision will bring changes in the social life of the residents. Sectors like tourism and entertainment will get better. Reforms will be introduced for increasing tourism and take steps to neutralize the stronghold of the religious clerics to some extent. The education sector is one of the most important sectors in any country and Saudis have always given importance to this sector. Under the Vision 2030, it is planned to work more in the education sector. The new plan aims to double the number of enrollments of the children with ages between three and six years.
In addition to increasing the number of students, the plan also focuses on improving the average score of students in the subjects of science and math by 15% before 2020 (Yusuf, 2017). Vision 2030 recognizes the importance of cultural and entertainment-related opportunities for the residents as well (Freer, 2017). As a part of Vision plan, the number of venues for the promotional activities related to art will increase with the help of regulations in favour of it. By the year 2020, it is expected that there will be at least 450 cultural organizations working in the Kingdom. Vision 2030 aims to increase the number of citizen’s weekly physical activity to 40%. Vision 2030 has also extended the development of the opportunities for the female athletes (Thompson, 2017). A women division is formed under the General Sports Authority to promote sports among women of Saudi Arabia.
- Political Impact
Every big change that has to be implemented needs to be welcomed by a comfortable political situation else the situation becomes difficult. The political system of the Kingdom has not been changed much in the history. There has always been a system which the King of the era felt right. The proper planning of the political system was something that lacked in the Saudi government and that caused a lot of problems. The weakness of the government and its inability to control the factors involved in making the situation difficult was a fruit of lack of proper planning in the political culture (Al-Rasheed, 2013).
It was not the government officials calling the shots but the religious clerics who made the decisions on the behalf of the government. This practice made the Kingdom go into a tough spot when it comes to the international political situation. The allies and enemies of the Kingdom were not being made based on a well-thought political procedure and diplomacy (Vassiliev, 2013). Historians blame the Kingdom to be a part of the sectarianism that happened in the Islamic world. These steps were also not politically sound decisions and caused a lot of damage not only to the Kingdom but also had to impact on the Islamic world as a whole (Matthiesen, 2013). The political system of the Kingdom needed a lot of changes especially in the sense of approach in order to make sure that the positive change can be brought to the region.
When vision 2030 came along there was a desperate need to make changes in the designations but that was not enough it was important as well to change the approach towards the political issues being faced. Many political reforms and orders needed to be passed and amendments had to be made in order to make the image of the Kingdom better than what it had become in last few decades. This was crucial at this stage because the Kingdom was planning to take an initiative which was the biggest initiative ever taken.
The Kingdom needs to revise the laws that were made under the influence of the religious clerics in order to make sure that the positive image of the Kingdom is generated a portrayed in the world. There are many rules and regulations that were not well politically thought steps but were just made part of the law because of the pressure of the religious clerics and that bugged the system for so long. Many countries still find the Kingdom to be an extremist state which has laws that are offensive to those who believe in the liberation and freedom of humanity. The gender inequality and becoming a part of the unnecessary wars is a part of political policies that the Kingdom might need to visit in order to make the Vision 2030 into reality.
Restructuring the government positions and hierarchy is a big and important step that came with the Vision 2030. To implement the vision 2030 it is important to restructure the old government style and set up and share the responsibilities among the agencies and authorities in a way that the fulfilment of the vision gets all the support it needs. The restructuring of the government includes the following changes.
- Oil ministry became Ministry of Energy, Industry and Mineral Resources.
- The ministry of water and electricity was abolished and the responsibilities were split between Ministry of Energy, Industry and Mineral Resources.
- Top central banker of Saudi Arabia, Fahad Al Mubarak, was replaced by a former deputy governor of Saudi Arabian Monetary Agency, Ahmed Alkholifey.
- Ministry of Commerce and Investment is the new name for the commerce and investment ministry and Majed Al-Qasabi was made the head of this ministry.
- Labor and social affair ministries are now not two different departments. They both fall under the Ministry of Labor and Social Development.
- Ministry of Environment, Water and Agriculture is the new name for the agriculture ministry.
- The General Authority of Zakat and Tax is the new name of the Department of Zakat and Income and it is now linked to the finance ministry as well.
- Ministry of Hajj and Umrah is the new name for hajj ministry.
- Royal advisers are also changed.
- Two new authorities are formed with the titles of General Authority for Culture and General Authorities for Entertainment.
- An order was issued by the King to abolish several departments in order to streamline bureaucracy. Higher Committee for the Administrative organization, Higher Committee for Education Policy, Higher Education Council and the Civil Service council are few of the names of departments which were ordered to be abolished by the King.
Women have also found their place in the political scenario of the Kingdom (Naseem & Dhruva, 2017). There are many laws which are formed to empower women in the recent past. In 2013, King Salman issued a royal order which appointed 30 women in the Majlis Al-Shura. This was a considered to be a great leap forward. This was also made sure that no less than 20% members of the Majlis Al-Shura will be women from now on (Elmulthum & Elsayed, 2017).
- Economic Impact
Economic stability is what the countries thrive for the most. It is the quality that defines the condition and standing of the country. This stability of the economic situation is what makes the country able to survive the short-term and long-term issues and bumps on the way to success. The Economic condition of the Kingdom has been stable for most of the part of its history because of the oil reserves and the oil prices in the international market. Oil has been a basic and conventional fuel for the world for decades and the dependency of the oil has increased with the advancements as well. This is the reason why the Kingdom of Saudi Arabia enjoyed the stable currency for so many years.
The important thing to understand is that any economy cannot survive on only one source and multiple sources of income are required. The Kingdom survived on only one source of running the economy for so long that now that it is inevitable to choose a new source and share the load of the economy. Oil cannot support the economy forever and it is wise to make an alternative for the safe and secure future of the Kingdom. The world is moving forward and developing new sources of income for the countries and there are many new strategies that the Kingdom can employ to turns thing in its own favour.
They needed a new plan and that is where the Vision 2030 came to play its role. It is important that the government takes the implementation of this vision seriously as it can prove to be a very useful resource for the country in the future. The oil can only serve for few more decades to the Kingdom and run its economy but it is not the long-term way to deal with things. The Recent crisis in the oil prices must be taken as a lesson and it is high time that the Kingdom understands that depending on one resource is not the right way to go. The government needs to come up with a better plan and executable tactics should be employed to make things right.
With the advent and execution of the Vision 2030, there will be a huge impact on the economics of the country. First will be the areas of focus related to different type of investment opportunities. When the dependence on oil will be reduced that economic consideration will increase. The different type of skill of children will be increased. There will be a different type of opportunities will be present to the young generations.Their cultural changes in the society will determine the root of different kind of activities. This will happen to provide things which will improve the economies of people. The overall society will face a changing lifestyle with the attempt o increase their buying power and financial sources will be increased in order to gather resources related to the different cause.
Saudi Arabia exists at the intersection of the trade path between Africa, Europe and Asia. The investors are attracted towards the Saudi Arabia because of the potential is seen in the country as the government started working on the Vision 2030 seriously (Black, 2016). This has created a major investment inflow for the country. Industries in the Saudi Arabia are getting stronger because of all the investments coming their way. Growing foreign participation in the stock market of the Saudi Arabia is the driving factor in the National Transformation Program. As the interest of the investors increased in the Kingdom, gradually changes were introduced during 2016.
These changes include changes in the settlement cycle and plans for a secondary index, regulations for the trading real estate investment trusts and relaxed requirements for the foreign investors coming to the Kingdom. It is noted that the companies listed on the Saudi Exchange are diverse and a vast range of activities can observe there. There are fifteen sectors sharing the equities including hotel tourism, real estate development, telecommunication and IT, agriculture, retail, financial services, banks, petrochemical industries, utilities, cement, food industry insurance, media, transport, construction, publishing and media. The localization of industry under Vision 2030 offers great opportunities for the global public-private enterprises. Because of the logistical requirements for the international partnership Vision 2030 along with preceding trade policy set out to streamline and ease the entrance of the investors in the Saudi Arabia market.
In conclusion, Saudi Vision 2030 is what will Saudi Arabia forward in every field and make it one of the strongest countries. Vision 2030 is an extensive plan and covers all the basic and important fields in which the Kingdom needs to work. This plan will also reduce the dependency of Kingdom on the oil resources which is a big reason to worry as the reports indicated that the oil reserves might deplete in the next 70 years. Right now a major part of the economy of Kingdom depends on oil reserves and its market value. Deputy Crown Prince has announced this plan which can become a key to the survival of the Kingdom when there is no oil to earn from. This will introduce the Kingdom as a strong player in many fields like trade and tourism which are enough to run a successful economy.
This initiative will help the government to regulate the society in a better way. This will help the government to take better decisions and make sure that the resources are being consumed for the right cause and in the right way. The goals set by the government are well-thought and well-planned and if these initiatives are taken properly and the steps are taken in the right way as planned it will definitely come out to be a huge change ever observed in the Middle East. Saudi Arabia has been a strong player in the Middle East and if it wants to stay the strongest it needs to plan and prepare for the possible outcomes that might be faced in the future as a result of the execution of those plans.
The government has realized the needs and started working for the betterment of the Kingdom. Some people think that the government is still devising a proper plan but very few know that the Kingdom has already started to work on the plans. This is not a secret that the government of Saudi Arabia has realized the importance of the globalization factor and that is what made them realize that there are so many opportunities lying around and the Kingdom can take advantage of these opportunities if it goes out of the way to plan new adventures. The Kingdom is trying to make it a safe and dependable place to invest in introducing incentives for the investors.
The government is working on increasing the recreational activities and introducing the more sources of entertainment for the people so they can get amused and entertained. This is important because this field was almost ignored in the past and that had a negative impact on the society earlier.
Government is planning to make news plan and design project so that the country is able to provide the facilities to the residents through theinternet. This will make the processes more convenient and easier for the residents and this will also make the processes efficient. This will help to reduce the burdens on the shoulders of human beings and employ computers to do the hard work. This will give out a positive image of the administration. The administration is also working on making the government more effective so the rules and regulations are more effective.
This was also an area that was ignored in the past and needed much attention. This is important to maintain the governance standing stronger in the country. This initiative was missing in the past and that gave rise to the impact of religious clerics on the lawmaking more than ever before. Now, this will be under control and the lawmaking will be for the betterment of the Kingdom and not satisfy the ego of the religious clerics. This will help the kingdom to stay away from the sectarianism that it was involved in one way or the other and it ruined the political and social situation of the Kingdom. This is important to keep the government in a stronger position so that the non-government entities do not sit in the driving seat and make calls and ruin the political situation of the Kingdom in the world.
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