Saudi Arabia is capturing the whole world’s attention due to the recent announcement of vision 2030. This plan would be disaster for the Kingdom’s economy. Saudis are planning to cut their dependence of oil money.
Saudis are Planning to Cut their Dependence of Oil Money:
If the Kingdom reduces its oil dependence then they will have to change their management also. This announcement has been made by Prince Mohammad bin Salman during an interview. According to the business analysts, this would be helpful in creating business relationships for Saudi Arabia. That is why Saudis are planning to cut their dependence of oil money.
The investment fund could raise to almost $2 trillion, said the Prince. The current funds are $ 5 billion which includes shares from a Saudi chemical manufacturer. The shares are also included from the Saudi’s biggest lender.
Prince Mohammad bin Salman said that international investments are considered in order to cut their dependence from oil money. After 20 years, Saudi Arabia will be an economy that doesn’t rely on its oil money.
This announcement has made in the context of providing long term financial security to the economy. This is the reason behind vision 2030, it will help the Saudi government in controlling their economic as well as financial stability.
The analysts also said that this is not the right time to comment about this. Because the plan is still very unclear. In addition to that, the kingdom’s implementations are different from their plans. So, it is difficult to say what would happen next year.
The vision 2030:
In the first stage of vision 2030, the kingdom will try to accelerate the revenues from other places except oil. This phase would be accomplished by increasing inflation. Charges on public services will be higher. In addition to that people on visit will pay more to the Kingdom.
In the second phase, the Kingdom will cut off subsidies in order to rationalize the public support plans. They will divert the foreign purchases.
In the third step, the focus will remain on increasing the wealth of the kingdom. This would be accomplished by increasing the rate of current investment income.
Saudis are planning to cut their dependence of oil money. But, the plan itself is full of risks. It has a huge scope and scale. In this way, the kingdom will accomplish to play a genuine role in the region.
According to the recent news, Prince Mohammad bin Salman made an important announcement. According to him, Saudis are planning to cut their dependence of oil money. They are trying to welcome international business in Saudi Arabia. It is good to see that kingdom is taking initial steps towards the vision 2030.