59A7D41EB44EABC4F2C2B68D88211BF4 U.A.E Visa Rules and Procedures-Law updates -free legal advice: Reviewing Saudi Arabia's Seven Years Under Crown Prince Mohammed

Friday, June 21, 2024

Reviewing Saudi Arabia's Seven Years Under Crown Prince Mohammed

 Crown Prince Mohammed bin Salman’s tenure has been marked by significant changes in Saudi Arabia. Since his appointment in June 2017, he has pursued ambitious reforms through the Vision 2030 initiative. Here are some key highlights:

Economic Diversification: Vision 2030 aims to reduce Saudi Arabia’s dependence on oil revenues by diversifying the economy. Initiatives include privatization, investment in non-oil sectors, and the creation of a $2 trillion sovereign wealth fund.

Social Reforms: The Crown Prince has worked to modernize societal norms, empower women, and promote entertainment and tourism. These efforts have faced resistance but are crucial for long-term growth.

Infrastructure Development: Projects like NEOM, a futuristic city, and the Red Sea Project demonstrate the country’s commitment to infrastructure development and attracting global investors.

Youth Empowerment: Vision 2030 focuses on creating jobs for the youth population. Encouraging entrepreneurship and innovation is essential for sustainable growth.

Global Engagement: Saudi Arabia seeks to enhance its global standing through diplomatic efforts, cultural exchanges, and international partnerships.

Crown Prince Mohammed bin Salman has significantly transformed Saudi Arabia since his appointment. Let’s delve into some key aspects of this transformation:

Vision 2030: Launched in response to declining oil prices, Vision 2030 aims to diversify the Saudi economy. It includes establishing a $2 trillion sovereign wealth fund (the world’s largest) and privatizing sectors such as airports, education, and health.

Vision 2030, Saudi Arabia’s ambitious economic diversification plan, faces several challenges:

 Oil Dependency: The Saudi economy heavily relies on oil revenues. Transitioning away from this dependence requires significant effort and investment.

Cultural Shift: Vision 2030 aims to transform societal norms, empower women, and encourage entertainment and tourism. However, these changes encounter resistance from conservative elements.

Youth Unemployment: The plan seeks to create jobs for the growing youth population. Achieving this goal amidst economic reforms is challenging.

Private Sector Development: Encouraging private sector growth and innovation is essential. However, bureaucracy and historical reliance on public sector jobs pose obstacles.

Global Competition: Saudi Arabia competes with other countries for foreign investment, talent, and market share. Attracting global investors requires overcoming perceptions and geopolitical concerns.

Non-Oil Revenues: Since 2016, non-oil revenues in Saudi Arabia have nearly tripled. The country is also experiencing steady growth in non-oil exports, rising from 2.2% in 2017 to 2.5% in 20182.

Investment and Spending: Crown Prince Mohammed bin Salman introduced the “Partner” program to strengthen private-sector collaboration. The total investment expected in the national economy until 2030 is 12 trillion riyals, excluding government spending and private consumption3.

Metropolitan Development Strategy: Salman’s development plan for Riyadh, known as MedStar, focuses on economic, environmental, infrastructural, cultural, and urban aspects. It aims to diminish the power of the religious establishment and diversify the economy.

Overall, Salman’s leadership has been marked by ambitious reforms and economic diversification, positioning Saudi Arabia for a dynamic future.

 Mega Projects in Saudi Arabia

 

 

 

 

 

 

Project Name

Value

Total value on commissioned Date

Total Area

Completion Date

MASAR MAKKAH

$9.8 Billion

$8.34 Billion

1.38 million sqm

2030

 

RUA ALMADINAH

$37 Billion

$,8Billion

1.5 Million sqm

2030

 

KING ABDULLAH ECONOMIC CITY

$27 Billion

$13 Billion

1.7 Million sq

2028

JABAL OMAR

$5.6 Billion

$4 Billion

2 Million sqm

2026

 

ALULA

$15 Billion

$6.5 Billion

22,500 sq km

2027

 

NEOM

$500 Billion

$237 Billion

26,500 sq km

2030

 

RED SEA GLOBAL

$23.6 Billion

$21 Billion

28,000 sq km

2030-35

 

THAKER MAKKAH

$7 Billion

$1.3 Billion

4 Million sqm

2030

 

MARAFY

$5 Billion

$400 Million

4 Million sqm

TBC

 

ROSHN

$1.9 Billion

$1.8 Billion

4 Million sqm

2026

 

SEVEN

$1.4 Billion

$400 Million

4 Million sqm

2026

JEDDAH CENTRAL

$20 Billion

$4.5 Billion

5 Million sqm

2030

JEDDAH ECONOMIC CITY

$30 Billion

$1.7 Billion

5.3 Million sqm

TBC

KNOWLEDGE ECONOMIC CITY

$8 Billion

$3.35 Billion

6.8 Million sqm

2025

SHAMS AL AROUS

$2 Billion

$500 Million

863,000 sqm

2025


 Source: Knight Frank, MEED Projects

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