- "vision is our status as the heart of the Arab and Islamic worlds." He says that "Allah the Almighty has bestowed on our lands a gift more precious than oil." (Saudi Vision 2030 Foreword)
- Non-renewable energy sources are on the decline and Saudi's economy is heavily based on oil. They have 267 billion barrels of proven reserves with a 10.2 percent share of world production.
- "determination to become a global investment powerhouse" in order to "diversify our revenues" (Saudi Vision 2030 Foreword) King Salman says that Saudi has very strong investment capabilities. They will invest in many projects.
- Transform their "strategic location into a global hub connecting three continents: Asia, Europe, and Africa."
For reference they are in a great spot:
They are taking FDI very seriously for the future. They will turn "Aramco from an oil producing company into a global industrial conglomerate," "transform the Public Investment Fund into the world's largest sovereign wealth fund," "encourage major corporations to expand across borders and take their rightful place in global markets," they plan to "manufacture half of our military needs within the Kingdom to create more job[s]," and "expand the variety of digital services to reduce delays and cut tedious bureaucracy." (Saudi Vision 2030 Foreword)
Saudi really plans to become a big global player in the coming decade and they have already set in motion big changes.
Firstly, women are now allowed to drive (Guardian). According to my Saudi friend, many households had chauffeurs to reduce the impact of not being allowed to drive. Many men also taught women how to drive there. Many, many Saudis everywhere and on UW Stout campus are excited for this change and are hopeful for the future. Auto manufacturers may change their marketing to reflect this new change.
Secondly, a huge resort project across 50 natural red sea islands for tourism has been announced. This will hopefully bring in many different tourists to the country. Tourist women will be allowed to wear bikinis despite of the clothing laws for citizens. This will bring large amounts of revenue to Saudi and reduce their dependence on oil (Telegraph). With more tourism in Saudi and more external influence, this may cause Saudi to change more laws and modernize even more. This is fascinating: normally we think that culture influences business but if Saudi were to change more based on this we may see business influencing the culture. This really brings to light how globalism will affect the world as a whole.
Pay attention for any more changes in Saudi within the next few years. I'm sure many will come! It may be a prime time to put some FDI in Saudi right now.
Sources
Many stories coming out of Saudi Arabia via the media these days. They are indeed hopeful and worth watching. A blog for expat women offers a few insights about Saudi Arabia to dispel a few myths: http://www.expatwoman.com/saudiarabia/monthly_saudiarabia_guide_ksa_myths_17205.aspx
ReplyDeleteThere are many myths about Saudi that my friend has expelled as well. Funny that this talks about wealth, it's no secret that many Saudis have very nice vehicles here at Stout but many still drive "normal" vehicles. They have income inequality just like the US does. The conservative point is also very interesting to me. I knew someone who lived in Saudi for a year or two and she said it's way less conservative then you think and the media doesn't do a good job of showing that. Of course, just like this article it depends on the region. I guess the key thing is here, never trust what you read or see on TV without talking to someone who is actually from there. Looking at your Hirsi Ali.
DeleteGood source of information, Hirsi Ali!
ReplyDelete