Mohammed Fahad Al-Harthi |
Published — Tuesday 26 April 2016
It was an exceptional day for Saudi Arabia yesterday. The Royal Court was packed with Saudi and foreign journalists and writers. Their eyes were fixated on the declaration of the Saudi Vision 2030 — a new road map that charts a new future for Saudi Arabia.
Deputy Crown Prince Mohammed bin Salman, the architect of the path-breaking project, revealed the main features of the plan. He presented a comprehensive economic, social and military blueprint.
The plan rests on Saudi Arabia’s tall standing in Arab and Islamic world, the Kingdom’s massive investment capacity and the country’s strategic location. The plan includes key factors and initiatives that will take Saudi Arabia on par with the developed economies of the world. Most importantly, the plan relies on multiple resources of revenue rather than a complete reliance on a single commodity of oil.
The plan focuses on human resources through training and development to bring about a qualitative change in the field of education. The plan’s economic side is full of attraction, particularly the Public Investment Fund, which is expected to reach SR10 trillion, making it the largest investment fund in the world.
The deputy crown prince had extensive discussions with many of the attendees and he clearly has a comprehensive road map for implementing the project. He answered all the questions that were put to him with great assurance and provided accurate figures.
He encouraged dialogue during the conversation because he believes that dialogue will help us all to reach healthy solutions.
A bright future awaits Saudi Arabia. The number of Umrah pilgrims, for example, is expected to rise from the current 8 million to 30 million by 2030.
One of the striking examples in the plan is spending on culture and entertainment where the family spending is poised to increase from 2.9 percent to 6 percent. This is just one of the several aspects the map details with clear figures and objectives.
Yesterday, the Saudi people who listened to the deputy crown prince were more confident and more optimistic about the future of their country on the back of the country’s new development drive. As one of attendees said: “I now feel secure about the future of my children and grandchildren.”
http://www.arabnews.com/columns/news/915611
ARAB NEWS |
Published — Wednesday 27 April 2016
RIYADH: The Saudi government plans to work closely with the private sector to ensure that the economy grows for the benefit of the country’s citizens under Vision 2030, with further details to be announced soon on how this would take place.
This is according to Deputy Crown Prince Mohammed bin Salman, second deputy premier and defense minister, who provided further clarity on some initiatives at a press conference on Monday, the Saudi Press Agency reported.
He had earlier announced sweeping economic reforms to reduce the country’s dependence on oil and ensure long-term sustainable development, with plans for a $2 trillion sovereign fund.
These were some of the questions, edited by Arab News, posed by journalists to the prince at a press conference in Riyadh.
Q: We are beginning to see a new Saudi Arabia, where the contribution of the private sector is 40 percent. Privatization will focus on education and health but there are experiments in other countries where the privatization projects benefited the rich by virtue of financial capacity. How do we make sure that the results of this privatization will not make the rich richer and the poor poorer?
A: We have the experience of STC when it was privatized; its shares were offered for public subscription. Those who subscribed were the citizens and not businessmen. In the health sector, the idea now is to have the hospitals owned by the Ministry of Health to fall under a holding company and then be offered for public subscription. In this way, they will be offered to citizens directly. This will mostly prevent businessman and the wealthy from taking advantage of the privatization process because of the enhanced transparency.
Q: The vision is being carried out along two tracks: A clearer economic track and the social track. The question is about the social track: How will it materialize for citizens? Is there a timetable, whether in health, education and housing? And what about Aramco and freezing of oil production?
A: Forthcoming programs will be announced and launched under the umbrella of the Kingdom of Saudi Arabia’s Vision 2030, the first of which is the national transformation program expected to be announced by the end of the fifth month or the beginning of the sixth month. It will be an executive program to achieve the objectives of the vision in many sectors, the most important of which is the services sector, to meet the needs of citizens.
Firstly, we are talking about more than a $1 trillion, but the valuation of Aramco has not been completed. We are working on this with the banks and specialized centers. We expect that the valuation of Aramco will be more than $2 trillion.
Non-Aramco assets will also be added to the fund to the value of $300 billion in addition to the current value of the fund which is nearly $200 billion. In this way, we will have a public investment fund of more than a trillion, nearly $3 trillion.
Freezing the production of Aramco has nothing to do with its value or entry into the fund. The decision is for the benefit of Aramco. Already, the Kingdom has announced that it will welcome any process to freeze production if agreed among all the major states in OPEC, but so far the other states have not committed to a freeze.
Q: What is being done about the role of women, the driving issue, Aramco and young people?
A: Women’s driving is not a religious issue but rather a social one. Currently our society is not convinced that women should drive and there will be very negative consequences if this happens. But I stress that this issue is totally related to the desire of members of Saudi society and we cannot impose something on them they do not want. But in the future, changes will occur and we hope it will be positive changes.
On Aramco’s IPO, the company will offer less than 5 percent and companies owned by Aramco will be offered very shortly afterwards. We expect that there will be a high growth rate in the Saudi economy over the next 15 years. We do not expect it to be in the first years because these will be years of reform, but after that we expect very high growth that will make us one of the twenty largest economies in the world.
Young people are the real power of our country. They are strong, creative, ambitious and have high standards and values.
Q: You spoke about the sovereign fund and said 50 percent would be directed to foreign investments and the rest to the domestic market. Will there be a preference given to foreign investments? And what about research centers?
A: The fund looks to invest for pure profitability. The fund’s function is not to bear the responsibility of the nation. Its role is to create revenues and profits, and the role of government is to look for revenues. So, the focus of the fund is purely an investment focus.
We are using Saudi expertise and offices in planning and this is important work currently taking place with the king and the team working with him, which includes the Ministry of Planning.
Q: What is the situation with regard to the oil price, and human resources?
A: We can achieve the vision if the oil price is $30 or less and we think it is nearly impossible that oil falls below $30 by virtue of the current demand existing in the world. However, a rise in oil prices would help achieve the vision, so that the country is not vulnerable to fluctuations.
Saudi human resources are vital for the plan to work. Saudis are able to work in all sectors of the economy to help care for future generations.
Q: What is your vision on manufacturing in the Kingdom?
A: We have major global factories in the Kingdom today. We want to develop the country’s military industries to bolster and create a new economic sector that will provide many jobs and be a source of great profits.
Q: What is being done about bureaucracy and other obstacles, including convincing the public about the plan?
A: There will be intensive work with the legislative authority to issue or modify some of the regulations that have to do with the work of businessmen and Saudi companies to facilitate procedures, and to raise the level of services provided for them.
One of the obstacles was to convince some Saudis that Aramco was not part of our faith. Aramco is an investment, and there are many obstacles we’ve faced within the Saudi government, some parts of the media and among some readers. But when you explain to them things clearly, many people are convinced, like today. We need this support to achieve this vision because it will benefit everyone.
Q: Will the number of pilgrims be increased?
A: It is very difficult to greatly increase their numbers because of time and site limitations. We are dealing with the Haj as a religious duty. It is our duty to offer Haj services completely free, and this is the duty of all Saudis toward the Muslim world.
As for Umrah, there is a chance to increase Umrah performers and visitors throughout the year. We’re looking at increasing them to 30 million within the next 15 years. Yes, we will also target tourists in various fields: in history, civilization and culture, and also through some distinctive natural sites.
Q: Which services can’t be privatized? And what about relations with other countries?
A: Privatization of some services such the Red Crescent and Civil Defense is difficult because of the lack of profitability.
We will rely on Egypt and Sudan in agriculture. We will rely on Egypt in a very big way for the promotion of our exports to Europe and Asia. This will be of huge benefit for Saudi Arabia and Egypt. We also have other programs with the Gulf states linking roads, connecting rail networks and ports. We have programs with Jordan in line with the vision, and others with all neighboring countries.
Q: What role should civil society organizations play, and family owned companies?
A: We’re focusing very strongly on the development of the non-profit sector. I can assure you that most wealthy families in Saudi Arabia have a very strong desire to do non-profit work but they have not found the suitable environment and appropriate regulations that will protect their money.
We’re looking to the non-profit sector to support education, culture, health and research. There are opportunities to convert some companies into non-profit enterprises such as King Faisal Specialist Hospital. There has also been a plan mooted to do so with King Saud University.
Q: How would Vision 2030 affect sports clubs?
A: We’re focusing on the sports market or football market. We want it to be a successful market providing revenues for clubs. I think there are many issues that can be addressed in terms of reducing the cost of running Saudi clubs and creating additional profits for them. For example, if the number of foreign players were increased then payment for Saudi players will be reduced. This will reduce the running costs of clubs.
Q: How will the private sector contribute to the economy?
A: Aramco’s IPO is a part of the plan to grow the country’s Gross Domestic Product. Aramco will be a part of the private sector and not the public sector. Privatization will increase private sector productivity.
http://www.arabnews.com/saudi-arabia/news/915966
ARAB NEWS |
Published — Wednesday 27 April 2016
RIYADH: Custodian of the Two Holy Mosques King Salman has promised that the government would continue to invest in the training and education of citizens, which he said would help boost the economy.
The king made the comments during a meeting at Al-Yamamah Palace Tuesday with Mufrej Al-Haqabani, labor minister, and a group of representatives from the private sector.
“Your state is moving steadily on the path of growth and development while adhering to its religious and social values. We will continue working toward achieving comprehensive development across all regions of the Kingdom.”
King Salman said: “The state has paid great attention to the labor sector and technical and vocational training. It has enacted regulations, and provided generous financial support to train Saudi human resources and Saudize the technology sector.”
He explained: “The investment in developing national human resources is the main investment of your country. The people of this country have taken advantage of the training programs available to them, to help themselves and serve their community and country. Some of them have won honorable awards in this regard.”
http://www.arabnews.com/saudi-arabia/news/916046
MOHAMMED FAHAD AL-HARTHI |
Published — Wednesday 27 April 2016
Saudi Arabia is on a new trajectory of growth. The new vision outlines the future of the country. This week, the Kingdom revealed its post-oil plans and introduced a clear road map for its future. That road map prepares for change in a new Saudi Arabia in line with modern times. It has the potential for not only economic achievements but also political, social and military ones.
Saudi Arabia’s road map for the future will see it transformed from a state dependent on oil to a productive country with diversified sources of income. It is clear that this vision sets a path which will reduce wasteful government spending and raise the level of productivity.
Mistaken are those who see this transformation only from the economic side as it is in fact a comprehensive vision for the country in the post-oil era. This calls for structural, economic and social changes, and it is evident that society is preparing for this transformation because it is the only choice available that guarantees the stability of the state and the well-being of future generations.
Such changes require strong policies and decisions and decisive leadership in order to explain and manage the transformation; it is only natural that there will be resistance as human beings are by nature against change and anything that is new or unfamiliar.
Deputy Crown Prince Mohammed bin Salman, who also chairs the Council of Economic and Developmental Affairs, introduced the Vision 2030 on Monday. It is a comprehensive vision for the future and it focuses on specific targets and figures. It aims to find and create new concepts that require raising the level of productivity and transitioning to a new phase characterized by new thought. The deputy crown prince sees that society is expected to increase productivity, and he acknowledges that, without a doubt, women are one-half of society, and there is a need to increase the productivity of that half as well.
Certainly social change has an important role in any society seeking to improve itself. This change goes with establishing the idea of a civil state and increasing education and training so that Saudi skills and capabilities become one of the strengths of the national economy. No doubt the concept of the rentier state will remain for a while in Saudi culture, but the concept has created barriers to the state’s advancement. The result has been vast unemployment and a limited role for half of society; societies that run at half-capacity are unable to compete fully in the global market.
Discussions about social change are centered around development and modernization. The change is driven and led by the state in order to guarantee peaceful social change. Our leaders who have a long-term vision understand the nature of the people, their requirements, and the preparations needed for each stage. The Kingdom is entering a new phase in the history of its development and growth, and social change will be in line with the pillars of the Holy Qur’an and the Sunnah. This fact was emphasized by the Saudi leadership in its meetings with various groups of society.
Social change is associated with political, developmental and community actions. Those who have been monitoring Saudi society in recent years are aware of the tremendous changes because of the revolution in communications, the spread of education and the availability of scholarships as well as interaction with foreign communities in the Kingdom. These factors, among others, have created a new reality in Saudi society. As Anthony D. Smith wrote in his book on the concept of social change, “Change, be it social or historical, is so all encompassing that it is difficult to fully study, grasp and understand. This creates a sort of ambiguity that makes it difficult to reach a unique definition of social change.”
Nonetheless, social change is part of all societies and has been throughout history; its impressive results and outcomes vary depending on the community, the nature of the culture and people’s ways of thinking in addition to the context. This change gives birth to new societal values, structures and interpersonal connections. Changes also occur in the internal structure of society and sometimes clashes may occur due to the rapid speed of change and the emergence of different ways of thinking; this is of course the natural way of historical development.
Today, Saudi Arabia’s voice has become stronger and clearer than ever, and its decisions critical when it comes to benefiting and protecting its people. In order to guarantee these, the Kingdom launched Operation Decisive Storm and formed the Islamic Military Coalition to counter terrorism. We are an influential country in the G-20, and that is why we anticipate entering a new phase, not only economically but also socially and politically.
Saudi society has matured in its evolution and development as was described by the writer Dr. Abdul Aziz Al-Gharib in his book on social and cultural change in which he used practical examples from Saudi society. He writes that amid these cultural changes emerges the importance of reform in society, and he calls for the establishment of organizations to manage the reform process and guarantee its success in all aspects. He also advocates periodic evaluation and strategic planning as a “feature of civil societies.” He also confirms the importance of having a clear long-term vision based on what we want for society, and one that includes a methodology for use over several generations unaffected by any temporal or unexpected changes.
Saudi Arabia in the era of King Salman is enforcing a new rhythm with a loud and well-heard voice. This is true not only in its foreign policy and international relations, but also in the ambitions for tremendous growth that Saudis can translate into reality. As the force behind this project, Deputy Crown Prince Mohammed bin Salman, rightfully said: “There are great qualifications among Saudi youth that simply need the chance and opportunity to be shown, and it appears with the announcement of Vision 2030, the opportunity has arrived.”
http://www.arabnews.com/columns/news/916051#
Private sector to get help in promoting culture, entertainment
May 1, 2016
Adel Al-Turaifi
RIYADH — Saudi Vision 2030 include supporting the efforts of the Kingdom’s provinces and governorates in holding various festivals and activities, supporting talented writers, authors and producers, and supporting the creation of various cultural and recreational options that suit the various tastes and segments of the society, said Minister of Culture and Information Adel Al-Turaifi.
He said: “The Vision focused on boosting, consolidating and diversifying the concept of the cultural industry via a number of mechanisms. They include: supporting the nonprofit and private sectors in setting up festivals and various activities, activating the role of the different funds in establishing and developing recreational centers, encouraging investors from within the Kingdom and abroad to forge partnerships with international entertainment companies, allocating land for setting up cultural and entertainment projects including libraries, museums and arts, among others.”
http://saudigazette.com.sa/saudi-arabia/private-sector-get-help-promoting-culture-entertainment/
Good one.
