Saudi Arabia’s new development plan gathers momentum

A new report on Saudi Arabia just produced by the global publishing, research and consultancy firm Oxford Business Group (OBG) charts the latest developments in the Kingdom’s bid to shift away from hydrocarbons towards a knowledge-based economy.

2015 has been a momentous year for the Kingdom of Saudi Arabia. The ascension of the Custodian of the Two Holy Mosques King Salman Bin Abdulaziz Al Saud, a reordering of the country’s line of succession and a reshuffle of the main cabinet positions indicate a leadership with its sights firmly set toward the future. While regional unrest continues, the Kingdom’s reputation of stability and strength should ensure a healthy appetite from foreign investors moving forward. Indeed the Kingdom’s economy, dominated by its large hydrocarbons revenues, has continued to grow. Despite the drop in global oil prices contractors and investors can look forward to opportunities as the government pushes ahead with major infrastructure upgrades. 

Added to this are ongoing investments in other sectors including education, tourism and ICT, all of which point to the government’s drive towards a knowledge-based economy. Other sectors such as retail and real estate development are also showing solid growth, offering attractive opportunities for investors. 

The Report: Saudi Arabia 2015 contains a detailed, sector-by-sector guide for investors highlighting both the potential opportunities and challenges to be found when doing business in the Kingdom. It also features a wide range of contributions from other leading representatives, including the Governor of the Riyadh Region and Chairman of the Arriyadh Development Authority Prince Faisal Bin Bandar Bin Abdulaziz Al Saud, the President of King Abdulaziz City for Science and Technology Prince Turki Bin Saud Bin Mohammad Al Saud, the Governor of SAMA Fahad Al Mubarak, the Chairman of the Capital Markets Authority Mohammed Al Jadaan, and the Minister of Education Azzam Al Dakhil.

In addition, international personalities, including the Minister of Trade Industry and Energy of the Republic of Korea Yoon Sang-Jick and Secretary-General of OPEC Abdalla Salem El-Badri, give their views on the Kingdom’s economic development.

Makkah and Jeddah are both put under the microscope in OBG’s latest publication. The report highlights the large-scale developments and infrastructure projects taking shape in both places, alongside the kingdom’s plans to boost capacity in Islam’s holiest city.

Andrew Jeffreys, OBG’s CEO, said the Group’s latest report showed that Saudi Arabia’s new development plan, which has education and boosting the private sector at its core, was gathering pace. “While this year will see the kingdom record its first budget deficit since the financial crisis, low debt and ample fiscal reserves are set to help soften the impact of falling oil prices,” he said. “Our research indicates that a rise in entrepreneurial activity and business development is already producing new opportunities for investors, as Saudi Arabia makes the transition to a knowledge-led economy.”

Oliver Cornock, OBG’s Managing Editor for the Middle East, added that 2015 had been a year of significant developments for the kingdom. “A change in leadership, bold reforms and the opening of the Saudi Stock Exchange (Tadawul) have all made headline news this year in Saudi Arabia,” he said. “These and other major events are helping the kingdom to carve a role as a key player on the regional and international stage, which bodes well for its investment prospects.”

The Report: Saudi Arabia 2015 marks the culmination of a year’s worth of field research by OBG field staff and analysts. The publication assesses trends and developments across the economy, including macroeconomics, infrastructure, financial services and other sectoral developments.