Saudi Arabia's Vision 2030

The sweeping plan launched in 2016 to reduce Saudi Arabia's dependence on oil, its giant projects and reforms, and the doubts about what it can achieve.

Saudi Arabia is the largest economy in the Arab world and one of the world’s biggest oil exporters. In 2016, Crown Prince Mohammed bin Salman launched Vision 2030, a plan to transform the economy and society and reduce reliance on oil.

The goals

Vision 2030 set targets to:

Raise the private sector’s share of the economy.
Increase non-oil government revenue.
Raise women’s participation in the workforce.
Develop tourism, entertainment, mining, manufacturing and logistics.
Grow the Public Investment Fund, the country’s sovereign wealth fund, into one of the largest in the world.

Major steps

Aramco listing: in 2019, the state oil company Saudi Aramco sold a small share of itself on the Saudi stock exchange, the largest initial public offering in history at the time.
Social reforms: women were allowed to drive from 2018, cinemas reopened and concerts were permitted, supporting new entertainment and tourism industries.
Tourist visas: Saudi Arabia began issuing general tourist visas in 2019.
Giga-projects: very large developments, including NEOM, a planned region on the Red Sea coast.

Results so far

Women’s labour force participation among Saudi citizens rose sharply, from under 20 percent to over 30 percent within a few years, surpassing the Vision’s original target early. Non-oil activity has grown. But oil still dominates exports and government revenue, some giga-projects have been scaled back or delayed as costs mounted, and the kingdom has continued to borrow heavily.

Women join the workforce

Before the reforms, many Saudi women with university degrees did not work outside the home, partly because of rules on driving and workplace mixing. When women could drive and more jobs opened in retail, hospitality and offices, participation rose rapidly. Economists see this as one of Vision 2030's clearest economic achievements, since it expanded the workforce using existing talent.

Thinking a plan alone diversifies an economy

Announcing targets is easier than building competitive industries. Diversification depends on private businesses finding profitable opportunities, skilled workers and stable rules. Big state-funded projects can help, but they can also crowd out private activity or prove too costly.

Key takeaways

Vision 2030, launched in 2016, aims to reduce Saudi Arabia's dependence on oil.
Steps include the 2019 Aramco listing, social reforms, tourist visas and giga-projects.
Women's workforce participation rose sharply, beating early targets.
Oil still dominates, and some giga-projects have been scaled back as costs rose.