The Economy of Saudi Arabia
Vision 2030: The Diversification Plan
Launched in 2016, Vision 2030 seeks to reduce oil dependence by developing tourism, mining, entertainment, industry and finance.
A national transformation programme.
Goals
Raise non-oil revenue, increase private sector share, boost tourism, and create jobs for Saudis.
Reforms
Subsidies were reduced, a value-added tax introduced, and new sectors opened up.
Progress
Non-oil GDP has grown, and non-oil revenue has increased.
Challenges
Many targets are ambitious, and oil still funds most spending.
A new industry
Tourism, once limited to pilgrims, now includes beach resorts and entertainment.
Judging by announcements alone
Delivery matters.
Key takeaways
- Vision 2030 began in 2016.
- It targets new sectors.
- Reforms include VAT.
- Oil still matters.
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