Saudi Arabia's Vision 2030: Opportunities for Businesses

Written By Akshaya Ashok, Reviewed By Reyees K P

Published on 04/12/2024

Saudi Arabia with its deep Islamic roots and history and overwhelming fascination of desert and oil wealth has been associated with the Middle East for centuries. For many years the Kingdom’s economy relied mostly on oil exports. However, understanding the necessity of diversification and stable development, Saudi Arabia started the Vision 2030. This top strategy plan aims at making the Kingdom the financial capital of the globe as well as enhancing the non-oil segments.

The implementation of Vision 2030 also aims at providing various opportunities for both national and international investors.The information on the visionary goals and objectives of this plan will help businesses to embrace opportunities of the emerging sectors that will positively improve the Kingdom’s economy.

Key Components of Saudi Arabia Vision 2030

A Vibrant Society

It is beyond the economic framework as it seeks to develop the kingdom of Saudi Arabia into a vibrant society by 2030. At the moment the Kingdom is experiencing certain progressive social and cultural changes including women’s rights, self-employment opportunities for youth and tolerance. This social change is opening new opportunities for the companies in several Industries like Tourism industry and entertainment industry or retail industry.

A Thriving Economy 

The economic sector of Vision 2030 is directed toward the processing of the economy, diversification away from oil, and the development of new sectors. There are major economic performers which include the PIF, Development of Infrastructures and Industrialisation.

An Ambitious Nation

Vision 2030 is an ambitious plan that aims to position Saudi Arabia as a global leader in various sectors. The Kingdom is investing in education, technology, and innovation to build a knowledge-based economy. This ambitious vision is creating opportunities for businesses in sectors such as Technology and Innovation, Healthcare, and Education.

A Comprehensive Plan for Economic and Social Development

• Diversifying the Economy: Reduce oil dependence by Transforming Armco from an Oil producing company to a Global  Multinational industry
• Expanding Public Services: To expand the economy and develop public service sectors such as health, education, energy, real estate, tourism, food, and utilities
• Empowering Saudi Society: Transform Saudi society by doubling the participation of women in the workforce since 2016 achieving 37 percent female labour force and Expanding further developing the younger generation’s talents and capacity
• Strategic Global Hub: Transform strategic location into a global Hub for trade and gateway to the world
• Holy Sites Access: Ensure that Muslims from around the world can visit the Holy Sites
• Sovereign Wealth Fund: Transform public investment funds into the world's largest sovereign wealth fund
• Global Market Expansion: Encourage the major corporations to expand across borders and get top positions in the global market
• Military Manufacturing: Half of military essentials will be manufactured in the kingdom to get more job opportunities for citizens and keep more resources in Saudi Arabia
• Improve Digital Services: Reduce waiting times and cut unnecessary paperwork.
• Increase Transparency and Accountability: Measure government agencies' performance and hold them responsible for shortcomings.
• Measure Performance: Set up a body to measure performance of government agencies and welcome ideas for improvement.
• Share Successes and Failures: Openly share progress and welcome ideas for improvement.
• Future Planning: Plan for a future that fulfills ambitions and aspirations of citizens, as directed by King Salman bin Abdulaziz Al-Saud.
• Building a Better Tomorrow: Work tirelessly to build a better tomorrow for citizens, their children, and future generations.
• Honored to Serve Pilgrims: Fulfilling a role bestowed by Allah to attend to pilgrims and Umrah visitors' needs.
• Expansion of Two Holy Mosques: Tripled foreign Umrah visitors over the last decade, Reached 8 million visitors in 2015
• Increase Umrah Visitors: to over 15 million by 2020 and Ensure complete satisfaction with the pilgrimage experience
• Improving Services: Streamline visa application procedures, Achieve full automation of the visa process, and Integrate e-services into pilgrims' journey
• Promoting Culture and Entertainment: Saudi will support the efforts of regions, governorates, non-profit and private sectors to organise cultural events

What are the Business Opportunities in Vision 2030?

The kingdom of Saudi Arabia’s Vision 2030 strategic plan is remodelling the country and its economy so it’s ideal for business of all sizes. According to the government source mentioned, this radical process is primarily targeting to underscore the creation of new economic streams, particularly, the non-oil sector. Let's delve into some of the key business opportunities emerging from this visionary plan:

Infrastructure and Real Estate:

• Mega Projects: Since its establishment in 2020, Vision 2030 has been initiating giant projects such as NEOM, a city of the future, and the Red Sea Project for luxury tourism.
• Urban Development: The government is committed to the development of cities through provision of resources, which in return fosters development of constructions, engineering and real estate firms.
• Sustainable Cities: Future planning anchored on sustainability gives opportunities in green technology and more efficiently renewable energy solutions.

Tourism and Hospitality:

• Cultural Heritage: The Kingdom is trying to popularize its culture again and is seeking to attract tourists to historical attractions or cultural performances.
• Entertainment: This is because entertainment areas, including cinemas and theme parks, have emerged as factors that contribute to the advancement of the tourism industry.
• Hospitality: That is why there is a large number of tourists with the necessary amount of accommodations, hotel services, cafes, restaurants, etc.

Technology and Innovation:

• Digital Transformation: The expenditures on IT services are high due to the government’s push for digitalisation across industries, which present prospects for IT companies and start-ups.
• E-commerce: The following trends and challenges are identified: The increased availability of advanced Internet technologies is enabling new online retailers and logistics companies.
• Fintech: Target markets are rapidly growing in the financial technology sector, such as payments, lending, and insurance.

Healthcare:

• Healthcare Infrastructure: The government is focusing on developing healthcare facilities through the construction of hospitals and clinics.
• Medical Tourism: The Kingdom's goal is to be among the top medical tourism destinations and see patients from various countries.
• Pharmaceuticals: The healthcare market is growing, creating openings for goods production and distribution.

Renewable Energy:

• Solar and Wind Power: Renewable energy sources are being encouraged by the government implying that companies that deal in solar and wind power are likely to find a ready market for their products.
• Energy Efficiency: The Requirement for energy management is making consumers look for products and services that save energy.

How to turn these Opportunities into Reality?

• Understand the Regulatory Environment: Obtain the legal requirements concerning investment of the Kingdom as well as the business laws.
• Build Strong Local Partnerships: There is also the need to engage local players and stakeholders in an attempt to understand the local market well.
• Embrace Digital Technologies: Technologically enhanced communication and consequently facilitate business processes to a larger market.
• Prioritize Sustainability:  Make your business sustainable development compliant with Saudi Arabian regulations.
• Invest in Talent Development: The other strategy is the development of a skilled workforce to support the growth and development of innovative technologies.

Conclusion

Businesses can effectively prepare for success in the constantly evolving Saudi Arabian economy and better implement Vision 2030 by keeping up with the developing processes. For a better Business experience choose Resyon Badger, their team of experts can guide you through the complexities of Company  Formation, regulatory hurdles  and Tax Compliance. Our team of experts provides personalised services to individuals and businesses, ensuring compliance with tax laws and regulations.

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.