Saudi Arabia plans to launch a $425bn infrastructure plan tomorrow, with up to SR200bn ($53bn)-worth of deals to be signed on the same day.
According to a Bloomberg report, Saudi Arabia’s Crown Prince Mohammed bin Salman will present details of the planned $425bn programme on 28 January. It is believed that about 70 deals worth a total of SR200bn will be signed at the same time. The infrastructure plan will set out investments to 2030, in line with the Vision 2030 economic masterplan launched in 2016.
The plans were revealed by the kingdom’s Energy Minister Khalid al-Falih in Riyadh on 26 January.
The infrastructure plan focuses on areas and industries that will diversify the kingdom’s economy away from a dependence on oil.
The economic targets of the Vision 2030 programme include:
- Saudi Arabia to become 15th largest economy in the world by 2030, from 19th largest today
- Increase foreign direct investment from 3.8 per cent of GDP to 5.7 per cent
- Increase private sector contribution to GDP from 40 per cent to 65 per cent
- Increase non-oil exports in non-oil GDP from 16 per cent to 50 per cent
- Increase non-oil government revenue from SR163bn ($43bn) to SR1tn ($267bn) by 2030
- Increase position in Global Competitive Index from 25 to top 10 by 2030
- Create new economic pillars, namely manufacturing, technology, mining, digital economy, tourism and leisure, and expand retail sector
Riyadh recently approved an expansive budget for 2019. The spending, which is the largest ever planned by the kingdom, totals SR1.1tn ($293.33bn) and is up 7 per cent from 2018. The military, security services, education and healthcare were allocated more than two thirds of the planned expenditure.
|This article has been unlocked to allow non-subscribers to sample MEED’s content. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here|