Saudi Vision 2030 – How does it impact your business?
It is a few years now since the Saudi Vision 2030 was announced, a strategic plan to move the kingdom away from dependency on oil production and government spending. Described as making Saudi Arabia the “investment powerhouse” and “hub connecting three continents”, it is an ambitious plan. It was always going to involve change and upheaval, with winners and losers. It’s important to consider how it is affecting different businesses in the region and what this means for strategic planning.
The goals of Saudi Vision 2030
The purpose of the Saudi Vision 2030 was to provide a blueprint for Saudi Arabia (and arguably the wider region) which lays out how it will move in to the future. The ultimate goal is to strengthen the economy.
Central to this is the key tenet of diversification. Oil and gas has always been the core of the Saudi economy, but the purpose of the Vision is to move in to other sectors as well, in light of low energy prices worldwide. Central to this is the concept of privatising multiple government services, boosting the size and scope of the private sector. This would happen through the National Transformation Program 2020 (NTP), as a way of setting interim goals and areas for focus.
The rise in opportunities
For business entrepreneurs and investors, this is good news. Innovative businesses should thrive in this new climate and competition will drive greater success. Opportunities in Saudi Arabia are expanding in certain areas. However, there are businesses who, under privatisation, will have their weaknesses exposed and prove to be unsustainable.
There is an array of different areas of opportunity. This includes opportunities in
- Oil and gas
- Private sector investment
- Overseas investment
- Renewable energy
The NTP, in conjunction with the Vision, are therefore important to every business owner and investor in the region. With the push towards more non-oil exports, and the shift towards privatisation, it’s a huge change. And it’s fast.
This all means that, with the Saudi Vision 2030, we are seeing a greater number of local and overseas investors being involved in the country. Indeed, overseas investment is a notable part of the Vision and various international investors are already making their mark in the region. This drive towards more competition means that many different industries have to approach their businesses more strategically, if they wish to be the ones who thrive.
The investment opportunities reach down in to many different areas including social and community projects, healthcare, education, industry, environment, technology and more. Therefore, every business needs to consider how it can grow and excel in this different environment.
Thriving as a business in the Middle East
Of course, the Saudi Vision 2030 is designed to bolster and grow the Saudi economy. However, it inevitably is impactful across the region.
It’s time to look at individual businesses springing up in the private sector, and how they can be supported to thrive. Central to this will be the use of innovation, creativity and strategy. All private businesses need to focus on creating a technological advantage over others.
This also expands to marketing opportunities. With the rise in the number of businesses and investment opportunities, you need to stand out from the crowd. Your website needs to be better than the next one, and showcase your investment opportunity or business in a way that is a cut above the rest. We are seeing an increasing demand for high-quality website design and functionality, reaching to a far broader base than previously.
Marketing strategy is vital
Furthermore, marketing strategy will largely become the ‘make or break’ for many businesses. With privatisation comes increased competition, and it is your marketing endeavours which truly allow you to shine.
From seamless eCommerce platforms, through to your use of social media and digital advertising, every element of your marketing strategy needs to be considered.
Element 8 have been helping several different businesses throughout the region to adapt and embrace the opportunities that the Saudi Vision 2030 presents. Browse our services to see how we can help you too.