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Saudi Vision 2030: Historic Economic Transformation through Diversity, Growth  

Vision 2030 was launched on April 25, 2016. (Asharq Al-Awsat)
Vision 2030 was launched on April 25, 2016. (Asharq Al-Awsat)
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Saudi Vision 2030: Historic Economic Transformation through Diversity, Growth  

Vision 2030 was launched on April 25, 2016. (Asharq Al-Awsat)
Vision 2030 was launched on April 25, 2016. (Asharq Al-Awsat)

Custodian of the Two Holy Mosques, King Salman bin Abdulaziz stressed that Saudi Arabia is making major and lasting progress with its Vision 2030 national transformation plan.

The assertion, also echoed by Prince Mohammed bin Salman, Crown Prince and Prime Minister, was made in remarks included in the 2023 annual report for Vision 2030, which highlighted the successful implementation of the vision’s programs.

Vision 2030’s key objectives include developing promising and emerging sectors, bolstering local content, facilitating business environments, empowering citizens, engaging the private sector, and enhancing overall execution efficiency.

Since the launch of Vision 2030 on April 25, 2016, under the directive of King Salman and Crown Prince Mohammed, Saudi Arabia has undergone an unprecedented historic transformation.

This transformation is characterized by remarkable development that supports Vision 2030’s goal of creating a prosperous and promising future through economic growth and improved quality of life.

In the report, Crown Prince Mohammed expressed anticipation for achieving more significant developmental milestones across various fronts, particularly those attained in the past year and previous decades, underscoring the importance of preserving these gains for both the current and future generations.

Historic transformation

Saudi Arabia is going through a big change, with strong economic growth and more connections to the world, according to the report. It is also empowering its citizens and putting protecting the environment first. This makes it a land full of opportunities for everyone to shape a successful future.

Halfway into its journey, Vision 2030 has already met many of its goals faster than expected, the report showed. Now, it is aiming even higher to have a bigger impact.

By the numbers, 87% of Vision 2030 initiatives are done or on track, and 81% of key performance indicators for programs have hit their yearly targets.

In 2023, the non-oil sector made up 50% of the country’s total economy, reaching a record high.

Lasting impact

Vision 2030 is all about creating a lasting impact, bringing more progress and benefits to the Kingdom while opening up bigger opportunities for its people.

The Kingdom’s economic makeover, driven by Vision 2030, is a success story fueled by ambitious goals for a diverse and thriving economy.

This involves big changes in economic policies and substantial investments in key sectors like manufacturing, technology, tourism, renewable energy, mining, and logistics.

Moreover, Vision 2030 puts a strong focus on encouraging entrepreneurship and innovation, building necessary infrastructure, and providing support and funding for startups and innovative companies. The goal is to boost their competitiveness and ability to grow, both nationally and globally.

Vision 2030 progress

The first leg of Vision 2030’s journey saw a lot of economic and structural reforms that set the stage for a successful national transformation, with real-world impacts. Now, as it enters the second phase, growth and opportunities are spreading across many promising sectors.

The private sector is stepping up to help achieve development goals in a more appealing environment, aiming for economic diversity and sustainable social impact in the next phase.

The achievements since the launch of Vision 2030 have boosted the non-oil sector, leading to growth. In 2023, non-oil activities made up half of the total GDP, and unemployment among Saudis stayed close to the 2030 targets. Saudi Arabia has also made progress in various international indicators.

Thriving economy

Saudi Arabia has set up four special economic zones to attract quality investments. The small and medium-sized enterprises (SMEs) sector is booming like never before. The industrial sector is also making strides by localizing car manufacturing and establishing the Kingdom’s first electric car factory.

Saudi Arabia is tapping into its vast natural and cultural wealth, revealing mineral resources worth $2.4 trillion last year alone.

The Kingdom is committed to building a green economy to preserve the environment and ensure sustainability, creating a vibrant society. Efforts are also underway to empower the non-profit sector, provide housing solutions for families, and enhance citizens’ skills for global competition.

Looking ahead

Since its launch, Vision 2030 has been committed to sustainable development and planning for the future, aiming to bring prosperity to all citizens.

The 2023 annual report highlights a prosperous year for Saudi Arabia, built on strong foundations for success, including national capabilities, diverse resources, and unlimited investments.

The government’s deep belief in the Kingdom’s potential has driven comprehensive development across various sectors.

Vision 2030 has led to rapid transformations in key and emerging sectors, such as entertainment, sports, tourism, culture, and digital services, alongside social empowerment initiatives.

Some sectors, like mining and renewable energy, require longer reform periods but are making progress through substantial investments.

Efforts to empower the private sector and attract foreign investment involve policy reforms influenced by global factors and challenges.

Today, Saudi Arabia’s economy is diverse and strong, driven by rapidly growing vital sectors, which have led to job creation and exceeded some targets ahead of schedule, making the kingdom a land of opportunity.

Vision 2030 has also boosted Saudi Arabia’s regional and international standing through cooperation for security and stability, vital for economic growth. This ensures the Kingdom’s continued journey towards progress and prosperity.

Stable foundation

The report also highlights Saudi Arabia’s strong economic performance, with non-oil GDP reaching its highest level in 2023, contributing 50% to the real GDP and growing by 4.7% compared to the previous year.

Non-oil government revenues increased significantly to SAR 457 billion ($121.8 billion) in 2023, covering 35% of the total budget expenditure.

Unemployment among Saudis dropped to 7.7% in 2023 from 8.0% in 2022, while inflation decreased to 1.6% from 3.1% in 2022.

The government’s efficiency index also rose to 70.8 points in 2022, surpassing the target of 60.7 points.

Public Investment Fund

Additionally, the report showed a big jump in the assets managed by the Public Investment Fund (PIF), hitting $749 billion in 2023, up from $557 billion in 2016, surpassing the $720 billion target.

The PIF drives economic diversification, investing in sectors like tourism, entertainment, financial tech, and sports.

It has become a global leader in spotting economic opportunities, creating 93 companies compared to 71 last year and generating around 644,000 job opportunities, up from 500,000 in 2022.

Thriving society

The report showed that life expectancy rose to 78.10 years in 2023, surpassing the target of 77.06 years.

Saudi Arabia also saw a record number of external pilgrims, reaching 13.56 million in 2023, up from 7.36 million in 2016, exceeding the target of 10 million.

Furthermore, the percentage of Saudi households owning homes increased to 63.74% in 2023, surpassing the target of 63%.

Remarkable progress

The report showed that halfway through Vision 2030, there has been significant progress towards its goals. Some indicators have even surpassed their targets, prompting a review of ambitions.

For instance, Saudi unemployment rates and female workforce participation have exceeded expectations, signaling a shift to higher aspirations for 2030.

The report also noted a maturing strategic approach in the second phase of Vision 2030, with improved measurement methods. Collaboration with international bodies ensures the adoption of best practices for monitoring progress.

Leading the charge

Saudi Arabia’s statistical sector has made significant strides, jumping 25 places in the World Bank’s National Statistical System Performance Index. This demonstrates the Kingdom’s commitment to providing high-quality statistical data.

Expo 2030 in Riyadh

Winning the bid to host Expo 2030 in Riyadh is a testament to Saudi Arabia’s global influence and active role in shaping the future. The expo will showcase innovations and technologies aligned with sustainable solutions, reflecting the goals of Vision 2030.

The report also highlighted that 2030 will mark an era of unprecedented global engagement.

2026 FIFA World Cup bid

Saudi Arabia has submitted its bid to host the 2034 FIFA World Cup, garnering significant support from football federations worldwide.

The bid marks a pivotal moment in the tournament’s history, as the Kingdom aims to share with the world the story of its ambitious sporting transformation in recent years.

From investing in human potential by empowering youth and unleashing their capabilities to ambitious projects that boost football and infrastructure, Saudi Arabia has embarked on a journey of comprehensive economic and social development.

The nation is committed to developing state-of-the-art sports, tourism, and public facilities on a global scale, driving economic and social growth.

Exceptional tourism achievements

The report highlighted Saudi Arabia’s rich and diverse culture, showcasing its history and stories of civilizations that have thrived on its land. Coupled with its geographical advantage, strategically linking Asia, Europe, and Africa, Saudi Arabia has become a global destination.

Efforts and initiatives under Vision 2030 have capitalized on this competitive advantage, opening doors to both local and international tourists and resulting in an unprecedented boom in the tourism sector.

China has recognized Saudi Arabia as a key tourist destination, with 112 million passengers passing through the Kingdom’s airports, marking a 27% increase from 2022.

Among them, 106 million were visitors, including 27.4 million international tourists, cementing Saudi Arabia’s position as a premier destination on the global tourism map.

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Business

Fitch Affirms ‘AA’ Credit Rating for Qatar

As LNG production increases, Fitch projects the general government budget surplus will rise ⁠to ⁠4.1% of GDP in 2027 (Reuters)
As LNG production increases, Fitch projects the general government budget surplus will rise ⁠to ⁠4.1% of GDP in 2027 (Reuters)
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Fitch Affirms ‘AA’ Credit Rating for Qatar

As LNG production increases, Fitch projects the general government budget surplus will rise ⁠to ⁠4.1% of GDP in 2027 (Reuters)
As LNG production increases, Fitch projects the general government budget surplus will rise ⁠to ⁠4.1% of GDP in 2027 (Reuters)

Fitch Ratings affirmed Qatar's long-term foreign-currency rating at "AA" and a "stable" outlook on Friday, saying its strong balance sheet and plans to sharply increase LNG output should help cushion the impact of the escalating Middle East conflict.

The US-Israel war with Iran has disrupted shipments from the world's most important oil artery, the Strait of Hormuz, which is responsible for 20% of global oil and liquefied natural gas supply.

The impact on LNG exports is likely ⁠to widen Qatar's ⁠fiscal deficit in 2026, contingent on how long the conflict lasts, but the country should be able to more easily tap debt markets or draw on its sovereign wealth fund, the Qatar Investment Authority (QIA), which has built up ⁠assets over decades of investing at home and globally.

Fitch said it assumes the conflict would last less than a month and the strait would remain closed during that period, with no major damage to regional hydrocarbon infrastructure. Under its baseline scenario, the agency expects Brent crude to average $70 a barrel in 2026.

As LNG production increases, Fitch projects the general government budget surplus will rise ⁠to ⁠4.1% of GDP in 2027 and exceed 7% by 2030. Excluding investment income, the budget is expected to return to surplus from 2027, with most excess revenue likely to be transferred to QIA for overseas investment.

The agency expects Qatar to meet its 2026 funding needs through a combination of central bank overdrafts, domestic and international market borrowing, and drawdowns on the finance ministry's deposits in the banking sector.

Business

Trump Seeks to Close $1.6 trillion Revenue Gap with Raft of New Tariffs

US President Donald Trump speaks before signing the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., US, July 18, 2025. REUTERS/Nathan Howard/File Photo
US President Donald Trump speaks before signing the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., US, July 18, 2025. REUTERS/Nathan Howard/File Photo
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Trump Seeks to Close $1.6 trillion Revenue Gap with Raft of New Tariffs

US President Donald Trump speaks before signing the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., US, July 18, 2025. REUTERS/Nathan Howard/File Photo
US President Donald Trump speaks before signing the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., US, July 18, 2025. REUTERS/Nathan Howard/File Photo

The Trump administration this week stepped up its ambitious effort to replace about $1.6 trillion in lost tariff revenue that was eliminated by the Supreme Court's decision to strike down a range of the president's import taxes.

Recovering that lost revenue, which the White House was counting on to help offset the steep, multi-trillion dollar cost of its tax cuts, is possible but will be challenging, experts say. The administration has to use different legal provisions to impose new duties, and those provisions require longer, complex processes that US companies can use to seek exemptions. It could be months or more before it is clear how much revenue the replacement tariffs will yield.

“I wouldn't bet against this administration being able to get back on paper the same effective tariff rate they had before," said Elena Patel, co-director of the Urban-Brookings Tax Policy Center. But the new approach will “make it easier for people to contest the tariffs, which is going to put a big asterisk on the revenue until all that is settled.”

On Wednesday, US Trade Representative Jamieson Greer said the administration will investigate 16 economies — including the European Union — over whether their governments are subsidizing excessive factory capacity in a way that disadvantages US manufacturing. The investigation will also cover China, South Korea, and Japan, Greer said.

In addition, he said there would be a second investigation of dozens of countries to see if their failure to ban goods made by forced labor amounts to an unfair trade practice that harms the United States. That investigation will also cover the EU and China, as well as Mexico, Canada, Australia, and Brazil.

Both investigations are being conducted under Section 301 of the 1974 Trade Act, which requires the administration to consult with the targeted countries, as well as hold public hearings and allow affected US industries to comment. A hearing as part of the factory capacity investigation will be held May 5, while a hearing on the forced labor investigation will occur April 28.

It's a far cry from the emergency law that President Donald Trump relied on in his first year in office, which allowed him to immediately impose tariffs on any country, at nearly any level, simply by issuing an executive order.

Moments after the Supreme Court's ruling, Trump imposed a 10% tariff on all imports under a separate legal authority, but that duty can only last for 150 days. The president has said he would raise it to 15%, the maximum allowed, but has yet to do so. Some two dozen states have already challenged the new tariffs. The administration is aiming to complete its Section 301 investigations before the 10% duties expire.

The effort underscores the importance that the Trump White House has placed on tariffs as a revenue-raiser at a time when the federal government is facing huge annual budget deficits for decades into the future. Previous administrations, by contrast, used tariffs more sparingly to narrowly protect specific industries.

Erica York, vice president of federal tax policy at the Tax Foundation, noted that the first investigation covers roughly 70% of imports, while the second would cover nearly all of them.

“That breadth suggests the goal isn’t to address the issues at hand, but instead to recreate a sweeping tariff tool,” she said, The AP news reported.

Trump sees tariffs as a way to force foreign countries to essentially help pay the cost of US government services, even though all recent economic studies find that American companies and consumers are paying the duties, including ones from the Federal Reserve Bank of New York and economists at Harvard University. In his state of the union address last month, Trump even touted his tariffs as a potential replacement for the income tax, which would return the United States’ tax regime to the late 19th century.

Trump also wants tariffs to help pay for the tax cuts he extended in key legislation last year. The tax cut legislation is expected, according to the most recent estimates by the nonpartisan Congressional Budget Office, to add $4.7 trillion to the national debt over a decade, while all Trump's duties, including ones not struck down by the court, were projected to offset about $3 trillion — or two-thirds of that cost.

The court’s ruling Feb. 20 that he could no longer impose emergency tariffs eliminated about $1.6 trillion in expected revenue over the next decade, according to the CBO.

Some of Trump's tariffs remain place, including previous duties on China and Canada that were imposed after earlier 301 investigations. The administration has also slapped tariffs on some specific products, including steel, lumber, and cars. Those, combined with the 10% tariff for part of this year, should yield about $668 billion over the next decade, the Tax Foundation estimates.

“It’s going to take a really big patchwork of these other investigations to make up for the (lost) tariffs,” York said.

The administration's efforts are also unusual because they reflect an overreliance on tariffs to bring in more government revenue. Trump has also said the duties are intended to return manufacturing to the United States, and he has used them to leverage trade deals.

“What makes this really different,” said Kent Smetters, executive director of the Penn Wharton Budget Model, “it is really the first time tariffs have been mainly used as a revenue raiser.”

Patel, meanwhile, argues that raising revenue can be done more reliably and straightforwardly by Congress. Laws like Section 301 are traditionally intended to be used to address specific trade policy concerns in particular countries.

“It’s not supposed to be there to raise revenue,” she said. “If we want to raise revenue through tariffs, then Congress should impose a broad based tariff.”

Business

Japan, South Korea Say Ready to Act Against FX Volatility

FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
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Japan, South Korea Say Ready to Act Against FX Volatility

FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo

Japan and South Korea expressed concern on Saturday about the rapid declines in their currencies, saying they were ready to act against excessive foreign-exchange volatility.

Finance Ministers Satsuki Katayama of Japan and Koo Yun-cheol of South Korea "expressed serious concern over the recent sharp depreciation of the Korean won and the Japanese yen," they said in a statement after their annual meeting in Tokyo.

The yen and won have slid as mounting tensions from the US-Israeli war on Iran have driven the dollar higher ⁠on safe-haven demand and ⁠battered the currencies of countries heavily reliant on imported oil.

"Furthermore, they reaffirmed that they will closely monitor foreign exchange markets and continue to take appropriate actions against excessive volatility and disorderly movements in exchange rates," the statement said.

The yen touched its lowest in 20 ⁠months on Friday and is near the line of 160.00 to the dollar that many in the market think might prompt Japan to intervene to support the currency. The won breached a psychological barrier of 1,500 per dollar this month for the first time since March 2009.

Tokyo and Seoul shared the view that significant volatility had emerged in financial markets, including foreign exchange, Katayama told a press conference after the meeting.

"The Japanese government ⁠is ⁠fully prepared to respond at any time, bearing in mind the impact that currency moves may have on people's livelihoods amid surging oil prices, and I believe both sides share that understanding," she said.

Katayama regularly says Japan is ready to act regarding yen moves, although some policymakers privately say that intervening to prop up the yen now could prove futile, as the flood of dollar demand will only intensify if the war persists.