Vision 2030 of Saudi Arabia is a government initiative to boost the entrepreneurship in the country and it is also a step to diversify its source of income which is mainly related to oil production.
Not only Saudi but most of the Middle East countries are now focusing on segregating their income via other businesses rather than only focusing on oil production. Vision 2030 was announced by the Saudi government in the year 2016 in the month of April.
For the implementation of the initiative, another program which is called “National Transformation Program 2020” (NTP) was launched in the same year that is in June 2016. The thought of Vision 2030 came from a very crucial change in the economy of the Middle East countries.
When the energy prices were tumbling due to the intervention of USA government, to protect the economy this step was necessary so that the people of the nation won’t only depend on the energy sector.
Though there is a long way to go, already there are positive changes due to this initiative and that is evident from the energy prices rising again which dropped to a very low point 3 years back.
Objectives of Vision 2030: The objectives of Vision 2030 can be enumerated as follows –
01-Learning and Training: The first step or objective of this program is to make the young generation of the country employable. Every business needs required skill set, training and thus bookish knowledge is not enough to build a business and make a profit out of it.
The program includes training of people according to their interest and field they are into. There are National Labor Gateway and sector councils which will be launched to find out the skills set of each industry and then preparing the people by training them according to the industry.
02-Backing up and motivating SMEs: Small-scale businesses are on the top priority list of Vision 2030. There are Small scale authorities which are incorporated to boost the small and medium scale industries.
The process includes educating and motivating the youth to take up small or medium scale businesses, by providing easy funding for the businesses, losing up the regulation for the commencement of the businesses.
03-Analyzing and Finding Skillful Talents: Not all who have talent and skills are aware of the revolution of Vision 2030, not all are confident enough to start their businesses, and thus it is the objective of Vision 2030 to seek talents and motivate them to join the tide of entrepreneurship.
Not only Saudi people who can take part in this but people from other nations who are looking actively for investment in this economy can take part in it.
04-Reducing Biases in Business: It has been said the women are the best managers when it comes to managing money and organizing something.
Thus Vision 2030 aims at empowering the women and providing them with equal opportunities as men of the country to get the flavor of entrepreneurship and if they have an idea and required the skill of implementing the same, they can also build their own business.
And not only women, Vision 2030 is for every citizen of Saudi and even Non-Saudi people who have a vision of their own.
Opportunities under Vision 2030: The main sectors where there are huge opportunities coming up are –
1-Health Care Sector – You can invest in this sector as the private sector investment is getting increased by 10% which was earlier 25%. You can also invest in the pharmaceutical businesses.
2-Education Sector – There is an increase of 9% in the private sector investment in this industry.
3-Real Estate – This sector is growing by 5% according to the Vision 2030 which gives a great opportunity for investment.
4-Transportation- This industry has the most for you as the Vision 2030 aims for private sector investment in railway projects to go by 45% which was earlier only 5% and in port projects by 40% which was earlier at 30%.
How Vision 2030 can change the economy of Saudi? Vision 2030 as stated above is an initiative by the Saudi government to develop the overall economy and bring new opportunities to its people. The factors which this initiative is looking at starts at the core level ad that is what the beauty of it. The work will involve two most important things to boost the productivity of the nation.
Firstly, as we all know a nation can only develop when its youth is educated, well trained and have required skills to run businesses or provide services which can earn a profit. So, Vision 2030 works on the fundamentals of training the youth to understand then evaluate and finally implement business ideas which can reap profit for them and for the nation as a whole.
The second thing which this initiative is to take for is to open the doors to this youth to freely trade and build up startups in the country. Reducing the legal procedures, opening up for FDI etc. are some steps to involve the youth to take their own initiative to build their own business and prosper in it.