Economic transformation has become a common theme for economies and institutions around the world. Digital transformation is a manifestation of this, developed in a modern high-tech society. However, many entities from national governments to the smallest of business owners struggle to craft clear strategies to enable this transformation.
Saudi leadership has taken the enlightening step of formulating a clear vision for the country by developing a comprehensive strategic plan to achieve goals. The National Transformation Program is the Kingdom’s commitment to change, and it can consolidate Saudi Arabia’s leading position in the future, even as it continues to face global markets with uncertainty.
Impact of Saudi Vision 2030 on Society
Saudi Vision 2030 sets out plans to develop “a vibrant society, a thriving economy, and an ambitious nation.” At the macroeconomic level, Saudi Arabia aims to increase non-oil government revenues from SAR 163 billion ($43.5 billion) to SAR 1 trillion ($267 billion) by 2030 and raise the share of non-oil exports in non-oil GDP from 16% to 50% over the same period.
Other major goals include economic acceleration and social development.
-Increasing foreign direct investment from 3.8% to 5.7% of GDP in line with more advanced economies.
-Boosting the private sector’s share from 40% to 65%.
– Raising SMEs’ contribution to GDP from 20% to 35%.
-Reducing unemployment from 11.6% to 7%.
– Improving women’s workforce participation from 22% to 30%.
-Raising government effectiveness and efficiency and improving Saudi Arabia’s position in the Government Effectiveness Index published by the World Bank, from 80th place in 2015 to at least 20th by 2030.
– Improving the Saudi Arabian Kingdom’s position on the annual Global Competitiveness Index published by the World Economic Forum.
The government aims to make it one of the top 10 countries by 2030, up from its current 25th ranking.
The Role of Technology in Vision 2030
While Vision 2030 sets out ambitious economic and social goals for Saudi Arabia, the National Transformation Program (NTP) presents a detailed roadmap based on milestones and targets to get there.
The NTP program is one of many executive programs that support Vision 2030. Other programs include the Saudi Aramco Strategic Transformation Program, the Public Investment Fund Restructuring Program, the Human Capital Program, the Strategic Partnerships Program, the Privatization Program, and the Public Sector Management Strengthening Program.
Technology is a major aid to the many changes that Vision 2030 aspires to. It is one of Vision 2030’s goals in technology, intended to develop the country’s digital infrastructure and stimulate economic sectors, industries, and related private sector entities.
Digitization in technology in 2030
Digitization will play a pivotal role in achieving national transformation milestones, and the program identifies several digital transformation areas to support NTP initiatives, including five common digital platforms, 29 key digital initiatives for key sectors, and several national digital assets that can be developed to support government digital transformation.
Countries around the world see digitization as an opportunity to enhance citizens’ lives and drive economic and social progress.
Likewise, the Kingdom of Saudi Arabia expects to use the goals of Vision 2030 in technology, communications, and digitization to accelerate the implementation of the programs and plans envisaged in the Vision 2030 plan and the national transformation, and to help advance economic and social development, enhance good governance and enhance national security.
The Public Investment Fund finances projects of strategic value to the Saudi national economy. It has invested $3.5 billion in ride-sharing company Uber and $45 billion in SoftBank to create a $100 billion technology investment fund aimed at achieving Vision 2030 goals in technology.
The fund also invested $1.5 billion in the space and satellite companies of the British Virgin Aviation Group.
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