Vision 2030 driving development in Saudi Arabia

Vision 2030 driving development in Saudi Arabia

“The positive outlook reflects our expectation of improving GDP growth and fiscal dynamics over the medium term, tied to the country’s emergence from the Covid-19 pandemic, improved oil sector prospects, and the government’s reform programs,” S&P said.

The kingdom’s budget surplus expectations were evident late last year when it raised its revenue forecast even before Russia’s war in Ukraine propelled oil prices higher. Energy revenue still dominates the Saudi economy and those of its Gulf neighbours. Government data shows that break-even levels for Saudi Arabia are far lower than current crude prices, and possible hikes to official selling prices signal the potential for a significant budget boon.

Beyond energy, Saudi Arabia continues to diversify its economy. Seven years ago, the kingdom launched its Vision 2030 program to broaden its exports and investment potential with major sporting events, tourism, infrastructure and entertainment. This included the introduction of tourist visas in late 2019, with government aspirations to create one million additional leisure and tourism-related jobs and attract 100 million annual visits. It recently unveiled futuristic plans for Trojena, an ultra-luxury, year-round ski destination that can double as a venue for sports, art, music and cultural festivals.

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