Saudi Arabia’s vision 2030 can transform country & has major implications for the world economy

Saudi Arabia’s Vision 2030, effectively implemented can wean it from its addiction to Oil & has major implications for Middle East & World Economy

Highlights of Vision 2030, which is based on oil at $30/barrel, include:

1. 5% flotation of Saudi Aramco to raise funds ; could be conservatively valued at $2.5 tn ( according to WSJ)
2. Money raised to transferred to world’s largest Sovereign Wealth Fund, valued ~$3 tn, with mandate to kick start domestic investment
3. Boost share of private sector from 40% to 65% of GDP by 2030
4. Develop Mining industry which will create 90k jobs by 2020
5. Domestic military industry which will allow 50% of Defense spending being sourced locally by 2030
6. Diversification of government revenue away from oil ( today 90% of budget revenues is derived from hydrocarbons) by privatisation & greater private sector participation in infrastructure
7. Enhance women’s participation in labour force from 20% to 35% of GDP