Saudi Arabia Announces "Vision 2030"

[Bilad al-Haramayn]

Highlights of Saudi Arabian Deputy Crown Prince’s interview with Al Arabiya ​

Staff writer, Al Arabiya EnglishMonday, 25 April 2016

In an exclusive interview with Al Arabiya News Channel on Monday, Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman discussed the kingdom’s Vision 2030 roadmap and pledged to end Riyadh’s dependence on oil revenue by 2020.

Among the themes raised in the interview, conducted by Al Arabiya News Channel’s General Manager Turki Al-Dakhi, were plans to put oil giant Aramco's shares in an initial public offering, the Saudi public investment fund, a Green Card scheme, tourism, expats, defense and further details on the Saudi Vision.

As part of the new strategy, Saudi Arabia will sell less than 5 percent of oil giant Aramco's shares via a partial IPO, the prince said, adding that it is set to be the “biggest IPO in history.”

He also said he expected Aramco to be valued at more than $2 trillion, and that he wanted it to be transformed into a holding company with an elected board, and then added that subsidiaries of the company would also be sold by IPO.

"The 5 percent is from the parent company," he said. Aramco is the world’s leading oil producing company, with about 10 million barrels per day of output, or about 10 percent of global production.

Prince Mohammad said the partial IPO will turn Saudi Arabia into an investment-driven economy and will turn the kingdom into a “global player.”

He added: “The kingdom can live in 2020 without any dependence on oil … The Saudi addiction to oil has disturbed development of many sectors in past years.”

"We plan to set up a $2 trillion sovereign wealth fund... part of its assets will come from the sale of a small part of Aramco," the prince said.

The fund will include current Saudi fiscal assets of around $600 billion, as well as returns from the sales of Aramco shares and state-owned real estate and industrial areas estimated to be worth $1 trillion, he said.

"We restructured the fund. We included new assets in the fund, Aramco and other assets, and we fixed the problems of the current assets that the public investment fund owns, both in terms of companies and other projects," he said.

"Initial data say the fund will have control over more than 10 percent of global investment capacity."

Green Card, tourism and expats
On the highly-anticipated topic of the Green Card for expatriates in the kingdom, the deputy crown prince said the scheme “will be ready within five years.”

“The Green Card will allow Muslims and Arabs to live in Saudi Arabia for a long time and will be a source for revenue for the government,” he added.

Prince Mohammed also revealed aims for Saudi Arabia to open up for all tourists, “within our beliefs and values,” stresses on the importance of revitalizing culture and entertainment in kingdom.

Discussing plans for Saudi Arabia to build the world’s biggest Islamic museum, Prince Mohammed said: “How can the kingdom be the holiest site for Muslims and have no Islamic museum?”

Transparency and subsidies
The prince said the Aramco IPO would be a key player in advancing transparency in the kingdom.

“In this day and age, no country can afford to not be transparent.

“There are a lot of benefits to the Aramco proposal, and the most important one and the major one is transparency.

“People in the past used to be upset that Aramco's files and data are not announced, unclear and not transparent. If Aramco is listed in the market, this means it must announce its lists, it must declare every quarter.

“It will become under the supervision of all Saudi banks and all Saudi analysts and thinkers. Or rather, all world banks and all research and planning centers in the world will intensively observe Aramco.”

The prince had previously said that Saudi Arabia is set to limit the impact of subsidy cuts on citizens.

The proposed system being developed by the Saudi government would provide cash to low and middle income Saudis who rely on subsidies.

He said the planned lifting of subsidies, as part of the Saudi Vision for 2030, will be implemented on everyone, “including princes and government ministers. This is a promise.”

The deputy crown prince also confirmed in the interview a government aim to reduce Saudi unemployment from 11.6% to 7%

Defense
On the topic of Saudi Arabia’s military spending, the prince asked: “How could we be the world 3rd largest spender on arms, but we don’t have a military industry?”

He then announced plans to set up a holding company for military industries that would be fully owned by the government at first and listed later on the Saudi bourse.

"We are now about to establish a holding company for the military industries 100 percent owned by the government that will be listed later in the Saudi market …We expect it to be launched by end of 2017 with more details," the prince added.
Saudi Vision

The prince said the Saudi Vision 2030 has no links to oil prices.

“The Saudi Vision 2030 was going to be implemented regardless of oil price,” he said, in references to prices plunging to a 12-year low of $32 a barrel in January.

“The Vision doesn’t require high-spending but restructuring.”
Explaining the roadmap, he said it mainly focuses on the kingdom’s strengths, being its religion and Arab heritage, Saudi investment ability and location.

Asked on the development of the King Salman bridge over the Red Sea, announced last week in an agreement with Egypt, Prince Mohammad said the crossing “will link Europe and Asia and will provide vast building and investment opportunities.”

He said the bridge will help move billions’ worth of cargo across the Red Sea.

He added: “All infrastructure projects within Saudi Arabia still stand and will be implemented.”

Prince Mohammed, who is spearheading the roadmap, had previously said that National Transformation Plan – part of the Saudi Vision 2030 - will include asset sales, tax increases, spending cuts, changes to the way the state manages its financial reserves, an efficiency drive, and a much bigger role for the private sector.


http://english.alarabiya.net/en/per...hammed-bin-Salman-s-Al-Arabiya-interview.html

https://twitter.com/x/status/724567362507313152

Miserable haters are gonna be butthurt for a LONG time to come.

@BLACKEAGLE @Ahmed Jo @alarabi @Frosty @JUBA @Full Moon @azzo @MICA @Hell NO @somebozo @Gasoline @Falcon29 @Halimi etc. 90% of the gang has perished in battle but nevertheless, lol.

 

[shah1398]

"We are now about to establish a holding company for the military industries 100 percent owned by the government that will be listed later in the Saudi market …We expect it to be launched by end of 2017 with more details," the prince added.
Saudi Vision

Thats what i was strong vocal of. If U have money then why not take a lead and start manufacturing military hardware for U and for the friendlies. Good and bold move. I can see many JVs ahead.Priority shud be given to Muslim countries like Turkey, Pakistan, Egypt etc already producing quite a lot of stuff.

 

[Bilad al-Haramayn]

Thats what i was strong vocal of. If U have money then why not take a lead and start manufacturing military hardware for U and for the friendlies. Good and bold move. I can see many JVs ahead.Priority shud be given to Muslim countries like Turkey, Pakistan, Egypt etc already producing quite a lot of stuff.

All NATO-type small arms used by Saudi Arabia are produced in Saudi Arabia alongside ammunition from 9mm up to 20mm cannon shells.
Recently, the factories were upgraded with the help of Denel corporation (of South Africa) to produce mortar bombs and artillery shells up to 155mm caliber.
Many of the light armored vehicles and MRAPs are now produced in Saudi Arabia (Shibl-1, Shibl-2 and Masmak MRAP)
In cooperation with Antonov, Saudi Arabia will produce Antonov Cargo planes in-country
Czech Manufacturer Tatra has an assembly plant in country that already provides medium and heavy transport trucks for Saudi forces
Saudi Arabia already produces the British Thales Damocles targeting pod in country
The same company maintains the spares for the Sniper targeting pods
Taqnia Aernoautics will build a helicopter production facility in country with the help of Sikorsky
The recent F-15SA deal included parts by Al Salam Aircraft company Most notably the front fuselage and the wing portions
Overall, it's not where it needs to be (far from it) but the situation is getting better. After all we only have around 25 locals so this limits the capabilities especially as we are a developing country on many fronts.

Yes, the focus will be on JVs with fellow Arab and Muslim countries but not only. Cooperation will reach new heights. It's the necessity of the hour for all Arab countries and our allied Muslim countries. The future is highly promising if given the chance to blossom.

 

[shah1398]

All NATO-type small arms used by Saudi Arabia are produced in Saudi Arabia alongside ammunition from 9mm up to 20mm cannon shells.
Recently, the factories were upgraded with the help of Denel corporation (of South Africa) to produce mortar bombs and artillery shells up to 155mm caliber.
Many of the light armored vehicles and MRAPs are now produced in Saudi Arabia (Shibl-1, Shibl-2 and Masmak MRAP)
In cooperation with Antonov, Saudi Arabia will produce Antonov Cargo planes in-country
Czech Manufacturer Tatra has an assembly plant in country that already provides medium and heavy transport trucks for Saudi forces
Saudi Arabia already produces the British Thales Damocles targeting pod in country
The same company maintains the spares for the Sniper targeting pods
Taqnia Aernoautics will build a helicopter production facility in country with the help of Sikorsky
The recent F-15SA deal included parts by Al Salam Aircraft company Most notably the front fuselage and the wing portions
Overall, it's not where it needs to be (far from it) but the situation is getting better. After all we only have around 25 locals so this limits the capabilities especially as we are a developing country on many fronts.

Yes, the focus will be on JVs with fellow Arab and Muslim countries but not only. Cooperation will reach new heights. It's the necessity of the hour for all Arab countries and our allied Muslim countries. The future is highly promising if given the chance to blossom.

Sir thats all is just for local consumption. My point was to go global. When U are offering almost tax free environment, stability, cheap electricity then who wud refuse to come in. Let Saudia be manufacturing and export spot for the regional esp Africa's too. That shud hold good for car/trucks manufacturing lines too.

 

[C130]

Highlights of Saudi Arabian Deputy Crown Prince’s interview with Al Arabiya ​

Staff writer, Al Arabiya EnglishMonday, 25 April 2016

In an exclusive interview with Al Arabiya News Channel on Monday, Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman discussed the kingdom’s Vision 2030 roadmap and pledged to end Riyadh’s dependence on oil revenue by 2020.

Among the themes raised in the interview, conducted by Al Arabiya News Channel’s General Manager Turki Al-Dakhi, were plans to put oil giant Aramco's shares in an initial public offering, the Saudi public investment fund, a Green Card scheme, tourism, expats, defense and further details on the Saudi Vision.

As part of the new strategy, Saudi Arabia will sell less than 5 percent of oil giant Aramco's shares via a partial IPO, the prince said, adding that it is set to be the “biggest IPO in history.”

He also said he expected Aramco to be valued at more than $2 trillion, and that he wanted it to be transformed into a holding company with an elected board, and then added that subsidiaries of the company would also be sold by IPO.

"The 5 percent is from the parent company," he said. Aramco is the world’s leading oil producing company, with about 10 million barrels per day of output, or about 10 percent of global production.

Prince Mohammad said the partial IPO will turn Saudi Arabia into an investment-driven economy and will turn the kingdom into a “global player.”

He added: “The kingdom can live in 2020 without any dependence on oil … The Saudi addiction to oil has disturbed development of many sectors in past years.”

"We plan to set up a $2 trillion sovereign wealth fund... part of its assets will come from the sale of a small part of Aramco," the prince said.

The fund will include current Saudi fiscal assets of around $600 billion, as well as returns from the sales of Aramco shares and state-owned real estate and industrial areas estimated to be worth $1 trillion, he said.

"We restructured the fund. We included new assets in the fund, Aramco and other assets, and we fixed the problems of the current assets that the public investment fund owns, both in terms of companies and other projects," he said.

"Initial data say the fund will have control over more than 10 percent of global investment capacity."

Green Card, tourism and expats
On the highly-anticipated topic of the Green Card for expatriates in the kingdom, the deputy crown prince said the scheme “will be ready within five years.”

“The Green Card will allow Muslims and Arabs to live in Saudi Arabia for a long time and will be a source for revenue for the government,” he added.

Prince Mohammed also revealed aims for Saudi Arabia to open up for all tourists, “within our beliefs and values,” stresses on the importance of revitalizing culture and entertainment in kingdom.

Discussing plans for Saudi Arabia to build the world’s biggest Islamic museum, Prince Mohammed said: “How can the kingdom be the holiest site for Muslims and have no Islamic museum?”

Transparency and subsidies
The prince said the Aramco IPO would be a key player in advancing transparency in the kingdom.

“In this day and age, no country can afford to not be transparent.

“There are a lot of benefits to the Aramco proposal, and the most important one and the major one is transparency.

“People in the past used to be upset that Aramco's files and data are not announced, unclear and not transparent. If Aramco is listed in the market, this means it must announce its lists, it must declare every quarter.

“It will become under the supervision of all Saudi banks and all Saudi analysts and thinkers. Or rather, all world banks and all research and planning centers in the world will intensively observe Aramco.”

The prince had previously said that Saudi Arabia is set to limit the impact of subsidy cuts on citizens.

The proposed system being developed by the Saudi government would provide cash to low and middle income Saudis who rely on subsidies.

He said the planned lifting of subsidies, as part of the Saudi Vision for 2030, will be implemented on everyone, “including princes and government ministers. This is a promise.”

The deputy crown prince also confirmed in the interview a government aim to reduce Saudi unemployment from 11.6% to 7%

Defense
On the topic of Saudi Arabia’s military spending, the prince asked: “How could we be the world 3rd largest spender on arms, but we don’t have a military industry?”

He then announced plans to set up a holding company for military industries that would be fully owned by the government at first and listed later on the Saudi bourse.

"We are now about to establish a holding company for the military industries 100 percent owned by the government that will be listed later in the Saudi market …We expect it to be launched by end of 2017 with more details," the prince added.
Saudi Vision

The prince said the Saudi Vision 2030 has no links to oil prices.

“The Saudi Vision 2030 was going to be implemented regardless of oil price,” he said, in references to prices plunging to a 12-year low of $32 a barrel in January.

“The Vision doesn’t require high-spending but restructuring.”
Explaining the roadmap, he said it mainly focuses on the kingdom’s strengths, being its religion and Arab heritage, Saudi investment ability and location.

Asked on the development of the King Salman bridge over the Red Sea, announced last week in an agreement with Egypt, Prince Mohammad said the crossing “will link Europe and Asia and will provide vast building and investment opportunities.”

He said the bridge will help move billions’ worth of cargo across the Red Sea.

He added: “All infrastructure projects within Saudi Arabia still stand and will be implemented.”

Prince Mohammed, who is spearheading the roadmap, had previously said that National Transformation Plan – part of the Saudi Vision 2030 - will include asset sales, tax increases, spending cuts, changes to the way the state manages its financial reserves, an efficiency drive, and a much bigger role for the private sector.


http://english.alarabiya.net/en/per...hammed-bin-Salman-s-Al-Arabiya-interview.html

https://twitter.com/x/status/724567362507313152

Miserable haters from certain backwater countries are gonna be butthurt for a LONG time to come.

@BLACKEAGLE @Ahmed Jo @alarabi @Frosty @JUBA @Full Moon @azzo @MICA @Hell NO @somebozo @Sinnerman108 @Gasoline @Falcon29 @Halimi etc. 90% of the gang has perished in battle but nevertheless, lol.

lmao KSA should have diversified starting in 2005 when oil skyrocketed. now it's kinda too late (or maybe not) but I don't believe this crap that KSA has only taped 3% to 5% of it's natural resources.

 

[Bilad al-Haramayn]

Sir thats all is just for local consumption. My point was to go global. When U are offering almost tax free environment, stability, cheap electricity then who wud refuse to come in. Let Saudia be manufacturing and export spot for the regional esp Africa's too. That shud hold good for car/trucks manufacturing lines too.

I don't disagree with you at all and such visions should have been implemented much earlier. Dutch disease and all.

The idea behind the military industries holding company and everything related to that is to become self-sufficient by large and become a manufacturing and export hub. 2/3 of the population is below 30 years of age and a vibrant military industry, tourist sector etc. will create much needed jobs and income. The population is increasing so creating jobs is one of the major challenges for the regime. Yet you have to have in mind that KSA is still a developing country and we don't yet have an huge population to pick from. When we reach 50-60 million people it will be a different story. The youth is highly educated nowadays. A trend that will only continue. Not only in KSA but all over the world.

lmao KSA should have diversified starting in 2005 when oil skyrocketed. now it's kinda too late (or maybe not) but I don't believe this crap that KSA has only taped 3% to 5% of it's natural resources.

From 2005 until 2014 money was mainly spent on all the numerous infrastructural projects in KSA which were during that time only second to China in scale. I am here talking about new universities, dams, highways, metros, financial districts, railway, numerous industrial cities only comparable in size and investment to those being built in China, military spending, expansion of Makkah and Madinah, King Abdullah's extensive scholarship program that has sent 200.000 Saudi Arabians abroad, mainly to Western, US in particular, universities etc. A lot of those projects are under construction and the fruits are yet to be harvested.

Why should it be too late? KSA remains a G-20 major economies member state, one of the wealthiest countries in the world, the economy is growing (especially the non-oil sector), KSA has wealth funds worth 0.7 trillion dollars, 100's of billions if not a few trillion of dollars of assets abroad etc.

"He added: “The kingdom can live in 2020 without any dependence on oil … The Saudi addiction to oil has disturbed development of many sectors in past years.”

Which is spot on. Not only that but corruption too which is being tackled more harshly than I recall.

The quote was about mineral resources which KSA has A LOT of. Not overall natural resources. May I also add that KSA has tremendous (if not the biggest potential alongside USA and China mainly due to the two laters sheer size) potential for renewable energy in the form of solar and wing energy.

Not to mention the large shale gas and oil discoveries in KSA that are not much talked about.

http://www.theglobeandmail.com/repo...om-could-be-a-tectonic-shift/article27214263/

We are in a much, much, much better position than most other oil and gas producing countries in case oil prices fall further.

Look at Venezuela (similar population of around 30-35 million) who have even (if I am not wrong) more oil and gas than KSA and look where they are economically, the conditions their citizens live under, crime levels etc. It all happens in a peaceful neighborhood and in USA's own backyard. KSA on the other hand is located in the most unstable region of late. Right in the middle of it moreover! There is a GIGANTIC difference between those two countries. I could mention almost all resource rich African countries, Central Asian etc. countries. They are nowhere near GCC on almost every single front. We are talking different galaxies.

The whole idea behind this vision and all the other extensive plans that are connected to that vision and emerging ones in the near future, is that we will move away from being dependent on oil. That and creating domestic jobs for both men and woman. The green card etc. is also targeted at big expat community who send the largest number of remittances back home after the US. That will change with the green cards.

@C130

 

[BLACKEAGLE]

Mohammed bin Salman is my hero.

 

[salarsikander]

Hi,

So basically 'Muslims" cant buy any property in the holy regions, just because they are not from the bloodline of al Saud ?

Please enlighten me further

 

[Bilad al-Haramayn]

Mohammed bin Salman is my hero.

He is well-spoken, hard-working and has charm. It's no wonder that King Salman saw a potential in him despite him wanting nothing to do with government duties initially. The more I think about it the more I believe that his personality is perfect for the type of transition and the type of challenges that we face in KSA and the wider Arab world. I hope that he will strengthen the good policies and correct the bad ones. At least he and his advisors can see the problems and the need of correcting them unlike certain previous corrupt dinosaurs.

My worry, as usual, are the hardliners within the clergy. Many have a hard time accepting that times change. They have always been like that. Their followers included.

 

[somebozo]

These Sudairis are too strong to be resisted..just looking at the way how King Salman and his Son duo consolidated power in mere 24 Hours. Shuffled and dismissed hundreds of people and effectively wiped out entire Abdullah crowd - some of them really high profilers like Tuwaijris..I have come to believe the initial assessment that yes...Sudairis yeild real power in KSA! Many people had high hopes on King Abdullah but Mohammed will be the go to man for reforms..

My worry, as usual, are the hardliners within the clergy. Many have a hard time accepting that times change. They have always been like that.

 

[waz]

My worry, as usual, are the hardliners within the clergy. Many have a hard time accepting that times change. They have always been like that. Their followers included.

If only Sheikh Muhammad Alawi al-Maliki (ra) was still alive today.

 

[Bilad al-Haramayn]

If only Sheikh Muhammad Alawi al-Maliki (ra) was still alive today.

How come you know him? Let me just say that my father's family and his "know each other very well". In my opinion he was one of the greatest scholars of the 20th century.

Many people do not understand that KSA is indigenously home to all Islamic madahib within Sunni Islam (Hanbali, Shafi'i, Maliki, Hanafi), Shia Islam (Zaydi, Twelver and Ismaili) and sufism which is very strong in Hijaz. All 13 regions of KSA have followers of those fiqh mentioned above ingeniously. However because the Hanbali madhhab is the state-domainted and official one, mainly due to the Najdi-domainted clergy, as Najd is almost exclusively Hanbali, many outsiders think that they are the sole representatives of the clergy within KSA which is honestly nonsense.

Anyway my only problem with some of the ultraconservative clerics (regardless of madhhab) in KSA is that they do not understand that times change. Why is that so? Because they have been around likeminded people throughout their entire lives. They do not really know what is going on in the wider society and those who do prefer to ignore it and live in a bubble. Ultraconservative clerics within KSA are not the only ones who act like that. You can see this tendency in every single Muslim nation in that segment of clergy.

However many of them are good people who do a lot of charity etc. They should not have a say in economic policies etc. though and other fields where their knowledge is lacking.

These Sudairis are too strong to be resisted..just looking at the way how King Salman and his Son duo consolidated power in mere 24 Hours. Shuffled and dismissed hundreds of people and effectively wiped out entire Abdullah crowd - some of them really high profilers like Tuwaijris..I have come to believe the initial assessment that yes...Sudairis yeild real power in KSA! Many people had high hopes on King Abdullah but Mohammed will be the go to man for reforms..

No doubt about that. Sudairis have always been the dominating faction among the offspring of King Abdulaziz ever since Fahd became king. Prince Muhammad will probably do more in the next 6-12 months than what King Abdullah did during his first 10 years in power (1995-2005). Times are much more different today though. The region as well.

 

[waz]

How come you know him? Let me just say that my father's family and his "know each other very well". In my opinion he was one of the greatest scholars of the 20th century.

Bro, the Sufis the world over looked up to this great man and loved him with all their hearts, including myself. He was the rightful successor when it came to religious affairs in the Hijaz, especially in light of the noble line he came from. I know people who went to study under him and millions of people from Pakistan and the wider Muslim world made it a point to see the great sheikh when they went on Umrah or Haj. He would have led the way for reformation.
I completely understand your point about the various schools of thought in S.Arabia and you're right.

 

[somebozo]

If only Sheikh Muhammad Alawi al-Maliki (ra) was still alive today.

We need to stop appointing these sheikhs and scholars as role models..their time is over..they are useless for modren society..no amount of sheikh and scholar knowledge will give you access to building missles, firing satellites and walking on the moon! It is senseless to dig these relics of past..

 

[Azadkashmir]

oh right saudis are going to manufacter things wooo hoo after 100 years later. oh god we do have sum of the dumbest leaders and government in the muslim world. muslim are not allowed to even make simple toy motor never mind real industries. i belive its all talk sorry.

We need to stop appointing these sheikhs and scholars as role models..their time is over..they are useless for modren society..no amount of sheikh and scholar knowledge will give you access to building missles, firing satellites and walking on the moon! It is senseless to dig these relics of past..

nope there is a shift modern life is making human ill mobile phones radation, gmo , vaccines, sodium flouride in water, education indoctination, tv brainwashing, assembley line slave labour, debt banking, pharmacy corrupt medcine.

most eurpeans want to move to country side and farm and get away from lying government.

military is not only strength of usa, abandaed that petro dollar usa military might will reduce. gold and silver curency yes dinasaur currency is hard currency.