Arab Today, arab today saudi arabia unveils first targets in sweeping reform plan
Last Updated : GMT 16:53:07
Arab Today, arab today
Arab Today, arab today

To move its crude-dependent economy

Saudi Arabia unveils first targets in sweeping reform plan

Arab Today, arab today

Arab Today, arab today Saudi Arabia unveils first targets in sweeping reform plan

Saudi Arabia is investing $22.5 billion to build a metro system in Riyadh
Jeddah - Arab Today

Saudi Arabia has unveiled the first concrete targets in its ambitious effort to move its crude-dependent economy away from oil.

In a press conference in the early hours of Tuesday in Jeddah, officials revealed sweeping plans to create some 450,000 non-government jobs by 2020, boost non-oil revenues and cut the cost of public wages.

The National Transformation Programme (NTP), endorsed by the Saudi cabinet late on Monday, is part of Saudi Vision 2030, a reform drive led by Deputy Crown Prince Mohammed bin Salman, the 30-year-old son of King Salman.

It aims to transform the state-dominated economy of the world's largest oil exporter into a private-sector powerhouse with diverse industrial interests and major international investments.

Saudi authorities have for years discussed plans to diversify the economy, but this effort has been given fresh urgency by the collapse in oil prices by more than half since mid-2014, which has led to a dramatic drop in state revenues.

Minister of State Mohammed al-Sheikh described the NTP to reporters as a five-year roadmap laying out targets to be met by government ministries and departments.

"This is phase one of addressing the challenges," he said, adding there will be "no substantial fiscal impact" on the state budget, partly because some savings have already been made.

At the heart of the reform effort is a previously announced plan to float less than five percent of oil giant Saudi Aramco on the stock market, with the proceeds to help form what will become the world's largest state investment fund, with some $2 trillion in assets.

- 'Transparency crucial' -

Sheikh said the NTP will be implemented through more than 500 initiatives at a cost of 270 billion riyals ($72 billion) over the next five years, with 40 percent of the funding coming from the private sector.

A plan to cut the share of public wages in the budget from 45 percent to 40 percent will decrease the total cost of state salaries from 480 billion to 456 billion riyals by 2020.

The plan also foresees a huge increase in non-oil revenues from 163.5 billion to 530 billion riyals by 2020, in a major shift in how state coffers are filled.

Officials said no income taxes are planned, but the plan does envisage measures including increases in government fees and taxes on "harmful products".

Further cuts to water and electricity subsidies -- already imposed last year after the country posted a record budget deficit -- will lead to an additional 200 billion riyals in savings, the plan says.

The creation of non-government jobs will focus on developing Saudi industry in a range of sectors, from renewable energy to car manufacturing to tourism.

Energy, Industry and Mineral Resources Minister Khaled al-Falih said that under the plan Saudi Arabia will be "a very strong competitor in renewable energy," and will implement "massive" projects to produce more natural gas.

He said the ministry plans to build an international complex for marine industries that will provide 80,000 jobs and cut imports by $12 billion annually.

A number of industrial cities are also planned and slated to generate 150,000 jobs, Falih said.

Unemployment is to fall from 11.6 to 9.0 percent by 2020 under the plan, with the proportion of women in the workforce rising from 23 to 28 percent.

Education reforms will aim to push more Saudis into the private sector, with the number of students in technical and vocational training programmes rising from about 104,000 to 950,000.

Noting that "transparency is crucial to the success" of the plan, it calls for regular updates on progress in reaching the targets -- an unusual display of openness from Saudi authorities.

Local and foreign reporters were invited to Jeddah for the unveiling of the targets and government ministers were to be available for three days to answer questions.

Source; AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi arabia unveils first targets in sweeping reform plan Arab Today, arab today saudi arabia unveils first targets in sweeping reform plan

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi arabia unveils first targets in sweeping reform plan Arab Today, arab today saudi arabia unveils first targets in sweeping reform plan

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday