Vision 2030: Advancing the Economy of Saudi Arabia

This paper discusses the past, present and future economy of Saudi Arabia and its vision to be one of the leading economies by 2030. Investment in health and education, infrastructural projects, boosting household income and cleaning up tax codes are discussed.

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Macroeconomics

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Introduction
Saudi Arabia better known as the kingdom of Saudi Arabia is one of the major player of
the Arabian World. The economy of Saudi Arabia is too much dependent on its oil producing
ability. Therefore, the following is some insights on the country characteristics and its vision to
be one of the leading economies by 2030. The paper will discuss the past and present economy
of the country and how the economy should advance towards the future. The kingdom of Saudi
Arabia is predominantly a Islam country and follows the cultural tradition of Islam religion.
Saudi Arabia came into existence in the year 1932 and was developed by king Abd-al-Aziz
(Ramady, 2010).
Vision 2030
The major work the government needs to do in order to improve the economic condition
of the country is to levy proportional taxes on the individuals according to their ability to pay the
taxes. Religious laws should be less used for majority of the decision making and allowing more
investment inside the country in order to increase the gross domestic product of the country. The
country should also concentrate more on technological progress as in the forthcoming years
technology is going to be the crucial factor that would regulate growth rate of the economies.
The country should also invest in higher education, which will fetch them quality human
resources for building up their nation. Therefore, if the points are summarized the thriving
economy are based on four major points that are listed below.
Investment in health and education
Investment in health and education facility often helps the residents of any country to increase
their potential, which in turn increases the ability of the residents to produce more goods and
services resulting in higher gross domestic product. The government of Saudi must support the
students who are not able to afford costly education in order to improve the country’s skills and
human resources.
Initiating infrastructural projects for growth
The growth rate of the economy is directly related to the infrastructural development the country
possess. Therefore, the government of Saudi Arabia should concentrate more towards
infrastructural development by making new roads and more airports that would make
connectivity easier with the rest of the world. More factories should be opened in the country
that can provide employment to the resident workers along with a good pay. If all the individuals
residing in the country are employed then there would be less poverty and higher GDP rate
making the country a successful economy.
Boost in the household income
The household incomes in the country should be boosted with the help of the government, which
can be done by providing assistance for child care expenses and transit expenses. The extra

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unnecessary expenses made by the individuals decreases their total income and marginal
propensity to save resulting in lower investment rate. Therefore, the government should help
individuals to save more amount of money by providing minimum assistance.
Cleaning up tax codes
It is already known that the tax rates are too low in the country because the government earns a
lot through international trade of oil but in order to develop the economy the government should
try and impose taxes on the individuals. The wealthier persons must pay higher amount of taxes
to the government so that the government is able to fund the assistance for the low earning class
resulting in higher productivity.
The thriving Economy of Saudi Arabia
The kingdom of Saudi Arabia holds the greatest portion of the land in the Arabian
Peninsula. According to the census of 2010, the population of the kingdom is around 27 million,
among which 8.4 million of the population are foreigners. Majority of the world economies are
dependent on the Saudi economy for their oil producing ability. The economy of Saudi Arabia
extracts a huge income from the rest of the world by selling the oil they produce. The
government of Saudi Arabia has not imposed taxes to its citizen until now because of its earning
ability, which is affecting the rate of deficit spending in times of crisis by the government
(Wilson & Graham, 2016). The government of Saudi Arabia is less transparent in nature and
depicts a legal monarchy over the population of the country with high corruption rate. Based
upon its vision attributes, the economy can achieve the success of uniformality among the
citizens and raise efefctivity in employment among the population. Besides being a rigid
government, the spending of the government amounts to 40 percent of the total gross domestic
product of the country. Moreover, the immigrant labor force is regulated at regular intervals and
the government has also reduced the subsidy rate on health care, water, schooling, gasoline,
electricity and on the banking industry (Albejaidi, 2010). As per the future growth prospects of
the nation, the economy can evolve with their eminent aspects of development and growth
among the other countries of the world and might take a lead over the others. The country would
be open to export and import and add more than 61 percent of the GDP. Redution of barriers to
trade and the tariff rates wpuld be lesser than that of 3.4 percent, that would empower the
economy with future prospects of development (Presley & Westaway, 2017).
Conclusion
It can be noted in the above paper that Saudi Arabia is a culturally diverse country with
Islam as its major religion. The country is open to international trade that is providing them the
extra edge of earning more. However, the country should allow more investment by the
foreigners inside the country that will enhance the gross domestic product of the country and
make the economic position better compared to the rest of the world.

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References
Ramady, M. A. (2010). The Saudi Arabian economy: Policies, achievements, and challenges.
London, UK: Springer Science & Business Media.
Wilson, P. W., & Graham, D. F. (2016). Saudi Arabia: The Coming Storm: The Coming Storm.
London, UK: Routledge.
Albejaidi, F. M. (2010). Healthcare system in Saudi Arabia: An analysis of structure, total
quality management and future challenges. Journal of Alternative Perspectives in the
Social Sciences, 2(2), 794-818.
Presley, J. R., & Westaway, T. (2017). A guide to the Saudi Arabian economy. London, UK:
Springer.