Saudi Arabia Outperforms Goals Outlined in Vision 2030

King Abdullah Financial District in the Saudi capital, Riyadh. (Asharq Al-Awsat)
King Abdullah Financial District in the Saudi capital, Riyadh. (Asharq Al-Awsat)
TT
20

Saudi Arabia Outperforms Goals Outlined in Vision 2030

King Abdullah Financial District in the Saudi capital, Riyadh. (Asharq Al-Awsat)
King Abdullah Financial District in the Saudi capital, Riyadh. (Asharq Al-Awsat)

Saudi Arabia has outperformed some of the goals outlined in Vision 2030, such as female workforce participation which increased to 36 percent, ahead of the 2030 target of 30 percent, according to a recent report by PwC Middle East.

The Kingdom’s economic diversification plans are beginning to bear fruit across various sectors, the report said, with the share of the non-oil economy reaching 59 percent, and non-oil GDP increasing in 2022 by 15 percent in actual terms and 28 percent in nominal terms, compared to the pre-Vision baseline.

The report stressed that Riyadh found its way to recovery through the tourism sector and the economic initiatives, which are aimed at expansion, innovation and diversification, indicating that this positive outlook was due to high oil prices and strong balance sheets at the sovereign and institutional levels.

Richard Boxshall, PwC Partner and Chief Economist commented: “The Gulf Cooperation Council (GCC) as a whole is making good progress towards achieving its countries’ National Visions, with areas of common focus including non-oil diversification, improving infrastructure, advancing digitalization, creating competitive business environments and workforce nationalization targets for the private sector.”

He continued: “Most GCC countries are also advancing towards their sustainability objectives, such as investing in solar generation capacity. With COP28 on the horizon, we expect the momentum and reinvestments driving this transformation to increase.”

The report highlighted the speed with which the region moved in its endeavor to secure the recovery of the non-oil economy, even in the sectors most affected by the pandemic, namely hospitality, transportation, retail and wholesale trade.

In 2022, the tourism sector in five Gulf countries, namely Saudi Arabia, the UAE, Qatar, Bahrain and Oman, recorded a decline of 8 percent compared to 2019 levels. However, by the last quarter of 2022, three of them, namely Qatar, Saudi Arabia and Bahrain, recorded much higher levels than those registered in the same period in 2019.

PwC Middle East revealed that Saudi Arabia received almost 6 million visitors in the fourth quarter of 2022, up 47 percent compared to the same quarter in 2019.

“Saudi Arabia’s economy has shown great growth since the launch of Vision 2030... The Kingdom’s increased focus on diversity has enabled the country to lead its economic sustainability agenda on a larger scale,” said Faisal Al-Sarraj, partner and Saudi deputy country leader at PwC Middle East.

He added: “This only gives us more optimism that the future for the Kingdom expands beyond Vision 2030 and will continue to lead by example through innovative solutions and transformation.”



How Tiny Lesotho Ended up with the Highest US Tariffs in the World

 Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
TT
20

How Tiny Lesotho Ended up with the Highest US Tariffs in the World

 Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)

If you have ever bought a pair of jeans from an American brand like Levi’s or Wrangler, chances are they were manufactured at a factory in the small southern African nation of Lesotho.

Textile manufacturing is one of Lesotho's key industries, exporting some 75% of its output to the United States.

This is expected to change after US President Donald Trump slapped a 50% tariff on imports from Lesotho, the highest among all countries. According to Trump, Lesotho charges a 99% tariff on US goods, but the government said it doesn't know how the US administration calculated that figure. Government officials did not say Thursday what Lesotho's tariffs on US goods are.

Here is what the high tariffs mean for Lesotho:

A country ‘nobody has ever heard of’

Trump made fun of Lesotho in a speech in March, calling it a nation that “nobody has ever heard of.” Lesotho's foreign minister reminded him that the US has a diplomatic mission there.

Last year, the landlocked kingdom bordered on all sides by South Africa with a population of 2.3 million people, celebrated 200 years of the founding of the Basotho nation and 58 years of independence from British rule.

Its picturesque scenery and mountainous views draw visitors from Africa and across the world, and during winter, Lesotho becomes one of the most sought-after skiing destinations.

What are Lesotho's exports and the economy?

Lesotho does not pay tariffs on exports to Botswana, Namibia, South Africa and Swaziland since it is a member of regional economic blocs such as the Southern African Customs Union. Main exports include clothing, diamonds, water, power, wool and mohair.

The new tariffs announced by Trump mean that American consumers will pay more for goods made in Lesotho, making them less competitive in the US market.

According to the Office of the US Trade Representative, in 2024, US-Lesotho bilateral trade stood at $240.1 million. Apart from clothing, Lesotho's exports also include diamonds and other goods.

Classified as a lower-middle income country by the World Bank, nearly half of Lesotho's 2.3 million population live below the poverty line, while a quarter are unemployed.

How has Lesotho reacted to tariffs?

Lesotho’s Trade Minister Mokhethi Shelile said his country will be on the prowl for new markets and use the Africa Continental Free Trade Area to increase exports to favorable destinations in Africa.

The government would also urgently send a delegation to the US to negotiate a workable arrangement. Shelile said he's concerned about the possible closure of textile factories, which employ about 12,000 people in Lesotho.