A RESTRUCTURED KING ABDULLAH FINANCIAL DISTRICT
In the last decade, works started at the King Abdullah Financial District, without consideration of its economic feasibility. The objective was to prepare the land in order to allow the business and financial communities to invest and build real estate. When this objective was not reached, the government decided back then to develop and rent the real estate. Challenges were deepened by the development of the real estate project in one single phase, which caused a significant increase in construction costs and several delays in delivery. This resulted in large oversupply of commercial space for the years to come. Without any dramatic shift in direction, renting the three million square meters of built-up areas at reasonable prices, or even achieving decent occupancy ravtes, will be very challenging. With this in mind, we have reviewed the economic feasibility of and designed a new fundamental strategy for the district in order to increase the chances of profitability and success. We will seek to transform the district into a special zone that has competitive regulations and procedures, with visa exemptions, and directly connected to the King Khaled International Airport.
We will also seek to repurpose some of the built-up areas and change the real estate mix, increasing the allocation for residential accommodation, services and hospitality areas. We will seek to build and create an integrated and attractive living and working environment. The district will be the headquarters of the Public Investment Fund, the largest sovereign wealth fund, which will contribute to creating an environment attractive to financial, investment and other corporations.
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AMONG OUR COMMITMENTS..
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A FLOURISHING RETAIL SECTOR
Over the past decade, the retail sector achieved an annual growth rate in excess of 10 percent. It currently employs 1.5 million workers, of which only 0.3 million are Saudis. Traditional retail also still dominates 50 percent of the market in the Kingdom compared to 20 percent in a number of countries in the Gulf Cooperation Council (GCC), with our retail market suffering from limited penetration of modern trade and e-commerce. We aim to provide job opportunities for an additional million Saudis by 2020 in a growing retail sector that attracts modern, local, regional, and international brands across all regions of the country. We also aim to increase the contribution of modern trade and e-commerce to 80 percent of the retail sector by 2020. This will be achieved by attracting both regional and international retail investors and by easing restrictions on ownership and foreign investment. To this end, we will facilitate local and regional flow of goods and develop necessary sectoral regulations. We will also increase financing of small retail enterprises to stimulate their growth and development.
A DEVELOPED DIGITAL INFRASTRUCTURE
A sophisticated digital infrastructure is integral to today’s advanced industrial activities. It attracts investors and enhances the fundamental competitiveness of the Saudi economy. We will partner with the private sector to develop the telecommunications and information technology infrastructure, especially high-speed broadband, expanding its coverage and capacity within and around cities and improving its quality. Our specific goal is to exceed 90 percent housing coverage in densely populated cities and 66 percent in other urban zones. We will also develop building standards to facilitate the extension of broadband networks. We will strengthen the governance of digital transformation through a national council. Additionally, we will improve our regulations and establish an effective partnership with telecom operators to better develop this critical infrastructure. We will also support local investments in the telecommunications and information technology sectors.
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SAUDI ARABIA IS RIGHT AT THE CROSSROADS OF IMPORTANT INTERNATIONAL TRADE ROUTES, BETWEEN THREE CONTINENTS: ASIA, EUROPE AND AFRICA. WE WILL THEREFORE MAXIMIZE THE BENEFITS FROM OUR EXCEPTIONAL AND STRATEGIC GEOGRAPHIC POSITION, AGREE NEW STRATEGIC PARTNERSHIPS TO GROW OUR
A THRIVING ECONOMY.. LEVERAGING ITS UNIQUE POSITION
BUILDING A UNIQUE REGIONAL LOGISTICAL HUB
We have already invested heavily in the construction of ports, railways, roads and airports. To take full advantage of these investments, we plan to work with the private sector and enter into a new series of international partnerships to complete, improve and link our infrastructure internally and across borders. We will also unlock our “hard” infrastructure with systems that can drive higher performance, including more rigorous governance, leaner processes and a more efficient customs system. We will improve and implement existing laws and regulations. Air, maritime, and other transport operators will be encouraged to make the most of their capacity: achieving durable links between existing trade hubs, as well as opening new trade routes. This will reinforce our position as a distinctive logistical gateway to the three continents.
INTEGRATING REGIONALLY AND INTERNATIONALLY
With a GDP of SAR 2.4 trillion, our economy is already the largest in the Middle East. We enjoy close economic ties with the Gulf Cooperation Council and other Arab countries, as well as constructive relations with Islamic and foreign countries. We will seek to establish new business partnerships and facilitate a smoother flow of goods, people and capital. Among our top priorities is to fortify and extend our interconnectivity and economic integration with other Gulf Cooperation Council countries. We will strive to complete the process of implementing the GCC common market, unifying customs, economic and legal policies, and constructing shared road and railway networks. We will seek to effectively link with other countries in the region, through enhanced logistics services
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and new cross-border infrastructure projects, including land transport projects with Africa through Egypt. Logistical and trade exchanges will be streamlined, further cementing our pre-eminent position as a major trade hub.
ECONOMY AND HELP SAUDI COMPANIES TO INCREASE EXPORTS OF THEIR PRODUCTS. WE WILL LEVERAGE THE CLOSE PROXIMITY OF ENERGY SOURCES AND OUR DISTINCTIVE LOGISTICAL OFFER TO STIMULATE A NEW PHASE OF INDUSTRIALIZATION AND TO CATALYZE EXPORTS AND RE-EXPORTS
SUPPORTING OUR NATIONAL COMPANIES
Rather than competing generically across the board, we will concentrate on our comparative advantages, national strengths and the areas that will assure leadership status. Initially, our priority will be to fully support major national companies, which have already gained a leading market share, by promoting their products and services regionally and globally, especially in the fields of oil, petrochemicals, banking, telecommunications, food, health care, and retail. We will also seek to support Saudi companies with promising growth opportunities so they develop into new regional and global leaders. Finally, we will fully support our national industries, assisting them to market themselves abroad and to export their products.
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A THRIVING ECONOMY.. LEVERAGING ITS UNIQUE POSITION
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To raise the share of non-oil exports in non-oil GDP from 16% to 50%
To raise our global ranking in the Logistics Performance Index from 49 to 25 and ensure the Kingdom is a regional leader
AMONG OUR GOALS BY
2030
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AN AMBITIOUS NATION
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AN AMBITIOUS NATION.. EFFECTIVELY GOVERNED
THE ROLES AND REQUIREMENTS OF GOVERNMENT HAVE GROWN SIGNIFICANTLY SINCE THE KINGDOM OF SAUDI ARABIA’S FOUNDING. GOVERNMENT – ANY GOVERNMENT – NEEDS TO EVOLVE AND IMPROVE CONTINUOUSLY, IF ONLY TO KEEP PACE WITH RISING EXPECTATIONS AND NEW CHALLENGES. THIS REQUIRES US TO MEET HIGH
STANDARDS OF TRANSPARENCY AND ACCOUNTABILITY. WE ARE COMMITTED TO MANAGING OUR FINANCES EFFICIENTLY AND EFFECTIVELY, AND TO CREATING AGILE PUBLIC ORGANIZATIONS AND TO TRACKING BOTH THEIR OWN PERFORMANCE AND THAT OF THE GOVERNMENT OVERALL
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EMBRACING TRANSPARENCY
PROTECTING OUR VITAL RESOURCES
We will continue to build safe and sufficient strategic food reserves, to better guard against emergencies. Aquaculture will be promoted, as will strategic partnerships with countries blessed with natural resources such as fertile soil and water reserves. In Saudi Arabia, the use of water in agriculture will be prioritized for those areas with natural and renewable water sources. We will also continue to collaborate with consumers, food manufacturers and distributors to reduce any resource wastage.
WITH AGILI
AN AMBITIOUS NATION.. EFFECTIVELY GOVERNED
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20To raise our ranking in the Government Effectiveness Index, from 80 to 20
To increase non-oil government revenue from SAR 163 billion to SAR 1 Trillion
To raise our ranking on the E-Government Survey Index from our current position of 36 to be among the top five nations
AMONG OUR GOALS BY
2030
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AMONG OUR COMMITMENTS..
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KING SALMAN PROGRAM FOR HUMAN CAPITAL DEVELOPMENT
We have yet to identify and put into effect the best practices that would ensure that public sector employees have the right skills for the future. However, by 2020, we aim to have trained, through distance learning, 500,000 government employees. All ministries and government institutions will be required to adopt best practices in human capital development. We will continue to hire individuals according to merit and work towards building a broad talent base, so they may become leaders of the future. The King Salman Program for Human Capital Development will establish HR centers of excellence in every government agency, and provide training. We will work to raise the productivity of employees to the highest levels possible, by implementing proper performance management standards, providing continuous training for professional development, and sharing knowledge. We will develop targeted policies to identify and empower future leaders, and will furnish a stimulating environment that provides equal opportunities and rewards for excellence.
SHARED SERVICES TO OUR GOVERNMENT AGENCIES
We are working towards shared services across our government agencies. This will contribute to achieving our goal of increasing productivity and raising the efficiency of government spending. Shared services in our government will also aim to increase quality, cut costs, unify our efforts, and provide a suitable work environment for all parties at the lowest cost. Shared services can be applied globally and locally in many sectors. This is our long-term goal, and we will implement it gradually. As a first step therefore, we will examine the status of support services in government sectors, set the scope of work and develop comprehensive priorities and implementation plans. We will follow best practices in employing shared services, with a robust set of performance indicators that will measure quality, workflow improvement, cost reduction and knowledge transfer.
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AMONG OUR COMMITMENTS..
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“QAWAM”: INCREASING SPENDING EFFICIENCY
We are committed to making our public spending radically more efficient, using our resources more effectively, and limiting waste. We will launch the “Qawam” program as a reflection of the Qur’anic verse that calls for moderation in spending between excess and parsimony. Allah the Almighty says: “And those who, when they spend, are neither extravagant nor niggardly, but hold a medium (way) between those (extremes)” Through this program, we will comprehensively review financial regulations in all government agencies. The program is intended to move away from a narrow reliance on process auditing, and move towards a more integrated approach with effective and efficient spending controls, and specific and measurable goals, while sustaining resources and assets. We will raise awareness and reward a culture of efficient spending throughout all administrative levels. Specialized training for employees and other key stakeholders will be provided as required, boosting the performance of finance departments and internal auditing.
EFFECTIVE E-GOVERNMENT
We have made remarkable progress in e-government. The scope of online services has already been expanded over the last decade to include employment programs, online job searches, e-learning services, traffic, passports and civil affairs, online payment services, online issuance of commercial registers, among others. This has improved Saudi Arabia’s ranking on several global indicators. In the UN e-Government Index, for instance, we ranked 36 in 2014, up from 90 in 2004. We will expand the scope of current online services further to include areas such as geographic information, health care and education. Quality will be improved by streamlining processes, and diversifying communication channels. We will also support the wider use of online applications in government agencies, such as cloud applications, data sharing platforms and HR management systems. Finally, we will strengthen the governance of online services within the government itself.
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THE NATION WE ASPIRE TO BUILD WILL NOT BE REALIZED WITHOUT A GRAND, COLLECTIVE NATIONAL EFFORT WHERE EVERYONE CONTRIBUTES. WE ALL HAVE ROLES TO FULFILL, WHETHER WE ARE WORKING IN THE PUBLIC, PRIVATE OR
AN AMBITIOUS NATION.. RESPONSIBLY ENABLED
BEING RESPONSIBLE FOR OUR LIVES
We have already faced and overcome many challenges and accomplished much, by the grace of Allah and our brotherhood. We have contributed to building our country. We have been, and still are, a great example in assuming responsibility. Today, as we face fresh challenges, new roles and responsibilities are required. We should feel great confidence in our capabilities, in our understanding of our obligations and in our ability to achieve excellence for our nation, our society, our families and ourselves. We are each personally responsible for our own futures. As such, we will develop ourselves and will work to become independent and active members of society, developing new skills in the process. We will remember our lifelong obligations to our families. In the workplace, we will be committed and disciplined, acquire new experience and pursue our ambitions. We will create the right environment to enable us to fulfill these responsibilities. We will promote greater financial independence by providing planning tools such as mortgages, savings portfolios, and retirement options. We will set up a regulatory framework that empowers the non-profit sector.
This will all be achieved by adhering closely to Islamic principles, Arab values and our national traditions. As we build our own long-term future, we will remember our duty to respect these principles, which include supporting the vulnerable and needy, helping our neighbors, being hospitable to guests, respecting visitors, being courteous to expatriates, and being conscientious of human rights.
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NON-PROFIT SECTORS. WE WILL THEREFORE WORK CONTINUALLY TO ACHIEVE OUR HOPES AND FULFIL OUR ASPIRATIONS AND RESPONSIBILITIES TO OUR COUNTRY, OUR SOCIETY, OUR FAMILIES, AND TO OURSELVES
BEING RESPONSIBLE IN BUSINESS
We aspire to have businesses that contribute to developing our society and our country, not be geared solely towards generating profits. We expect our companies to observe their social responsibilities and contribute to creating a sustainable economy, including by creating the stimulating opportunities for young men and women that can help them build their professional careers. We will encourage the businesses that follow through on this commitment to participate in our country and to address national challenges.
BEING RESPONSIBLE TO SOCIETY
The values of giving, compassion, cooperation and empathy are firmly entrenched in our society. We have already played an influential role in providing social aid locally, regionally and globally. In the future, we will formalize and strengthen the organization of our social and compassionate work so that our efforts have the maximum results and impact. Today, we have fewer than 1,000 non-profit foundations and associations. In order to increase the resilience and impact of this sector, we will continue to develop regulations necessary to empower non-profit organizations. We will review our regulations to encourage endowments to sustainably fund the sector and to encourage corporations and high net worth families to establish non-profit organizations. Government support will be directed to the programs with highest social impact and we will support training workers to encourage volunteering and careers in the non-profit sector. Enabling non-profit organizations to attract the best talents in order to ensure best management practices and the transfer of knowledge, which will strengthen these institutions over the long- term. This will ensure that the non-profit sector plays an enhanced and more efficient role in critical sectors such as health care, education, housing, research, and cultural and social programs.
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AN AMBITIOUS NATION.. RESPONSIBLY ENABLED
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Access household savings From 6% to 10% of disposable income of households
To raise the non-profit sector’s contribution to GDP from less than 1% to 5%
To increase household savings from 6% to 10% of total household income
To rally one million volunteers per year (compared to 11,000 now)
AMONG OUR GOALS BY
2030
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AMONG OUR COMMITMENTS..
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A MORE IMPACTFUL NON- PROFIT SECTOR
Today, we have fewer than 1,000 non-profit and charitable foundations and associations. They contribute just 0.3 percent of our GDP, much less than the global average of 6 percent. Currently, just 7 percent of projects are focused on generating social impact or are aligned with the long-term national priorities. By 2020, more than one third of our non-profit organizations’ projects should have measurable and deep social impact. The recently published regulations on non-profit organizations and on the General Authority for Endowments will help the non-profit sector become more institutionalized, formalized and more efficient. We will accelerate this shift further by supporting projects and programs with high social impact and by facilitating the establishment of non-profit organizations by high net worth families, which will promote rapid growth of the non-profit sector. We will support this growth by creating a supportive and cooperate environment in which the sector’s institutions and government agencies can collaborate.
At the same time, we will encourage the non-profit sector to apply proper governance standards, facilitate high quality training to staff and promote a culture of volunteering and full-time careers in the sector.
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HOW TO ACHIEVE OUR VISION?
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WE HAVE OUTLINED A COMPREHENSIVE AND AMBITIOUS VISION FOR SAUDI ARABIA UNTIL THE YEAR 2030. IT IS THE FIRST STEP ON OUR JOURNEY TOWARDS A BETTER, BRIGHTER FUTURE FOR OUR COUNTRY AND OUR CITIZENS. TO ACHIEVE OUR ASPIRATIONS AND HOPES, WE HAVE ALREADY LAUNCHED MANY TRANSFORMATIVE PROGRAMS THAT HAVE PAVED THE WAY FOR THE VISION AND WILL HELP US ACHIEVE OUR GOALS. THESE INCLUDE, BUT ARE NOT LIMITED TO THE FOLLOWING:
THE GOVERNMENT RESTRUCTURING PROGRAM
Around the world, governments are organizing themselves with agility, continuously restructuring and aligning their systems to national priorities. We have already started moving along this path by eliminating supreme councils and establishing the Council of Political and Security Affairs and the Council of Economic and Development Affairs. These reforms have helped to speed strategy development and decision- making, as well as enhance performance. We will continue this careful restructuring, comprehensively and gradually, based on our clear priorities.
THE STRATEGIC DIRECTIONS PROGRAM
We have approved the strategic directions determined by our government agencies. Existing roles have been reviewed to align with our future economic and social needs. Decisions are based on detailed studies and benchmarks, as well as comprehensive analysis of each agency’s programs, plans and relevant performance indicators.
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THE FISCAL BALANCE PROGRAM
After the Council of Economic and Development Affairs was established, we began examining our existing capital expenditures, their approval mechanism and their measureable economic impact. We have formed committees and introduced new departments tasked with reviewing relevant regulations and taking the necessary action on the expenditures. As a consequence, last year, we increased our non-oil revenues by 30 percent, and we plan to continue diversifying our non- oil revenues in the coming years, by introducing new measures.
THE PROJECT MANAGEMENT PROGRAM
The Kingdom’s agencies are currently undergoing a wave of reforms and transformation. To manage this momentum and ensure all efforts are coordinated, we adopted an effective approach to project management and established expert project management offices (PMOs) in the Council of Economic and Development Affairs and many other government agencies. We also set up a central Delivery Unit.
THE REGULATIONS REVIEW PROGRAM
Over the past year, we reviewed many current laws and enacted new laws that have been years overdue. These include the company law, the non-governmental organizations’ law, the law concerning fees on non- used lands, the General Authority for Endowments (Awqaf) law, among others. We will continue to review all laws to ensure they are in line with the Kingdom’s priorities.
THE PERFORMANCE MEASUREMENT PROGRAM
We adopted the principle of performance measurement, and made sure it is properly used in our evaluation of all government agencies, their programs, initiatives and executives. We established the Center for Performance Management of Government Agencies to institutionalize these efforts for the long-term and built performance dashboards to promote accountability and transparency.
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THE PUBLIC INVESTMENT FUND RESTRUCTURING PROGRAM
Having worked on restructuring the fund, we are now refining its investment capabilities and enabling the fund to manage a broader portfolio of current and new assets. We aim to transform it into the largest sovereign wealth fund in the world and will announce a comprehensive plan to achieve this goal.
THE HUMAN CAPITAL PROGRAM
Because human capital is a crucial factor in the success of any substantial project, we aim to launch a thorough program for nurturing our human talent. This program will measure, assess and analyze the efficiency of our civil service. It will also support our government agencies with staff, studies, consultations, and strategic partnerships related to human capital.
TO ENSURE THE REALIZATION OF SAUDI ARABIA’S VISION FOR 2030, WE ARE PREPARING TO LAUNCH A GROUP OF EXECUTIVE PROGRAMS THAT WILL HAVE A SIGNIFICANT IMPACT ON IMPLEMENTATION. THESE INCLUDE، BUT ARE NOT LIMITED TO THE FOLLOWING:
THE SAUDI ARAMCO STRATEGIC TRANSFORMATION PROGRAM
We believe that Saudi Aramco has the ability to lead the world in other sectors besides oil, and it has worked on a sweeping transformative program that will position it as a leader in more than one sector.
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THE STRATEGIC PARTNERSHIPS PROGRAM
We are working with our economic partners around the world to build new strategic partnerships for the twenty-first century, in harmony with our national Vision, so that we can be a trade hub connecting three continents and enhance our exports.
THE PRIVATIZATION PROGRAM
We are in the process of determining additional sectors suitable for privatization. Our goal is to create a comprehensive privatization program. We will make use of international best practices, transfer knowledge and achieve our goals in a balanced and scientific manner.
THE NATIONAL TRANSFORMATION PROGRAM
In a new approach, our government agencies have been working through numerous workshops to examine their role in implementing the initiatives necessary for delivering on national priorities. We are identifying opportunities for partnering with the private sector, as well as innovative administrative and funding approaches. We are detailing specific initiatives that have clear performance indicators..
THE PROGRAM FOR STRENGTHENING PUBLIC SECTOR GOVERNANCE
We will work on restructuring our government agencies continuously and with flexibility. We will eliminate redundant roles, unify efforts, streamline procedures and define responsibilities. We shall also enable our agencies to deliver on their mandate, to be accountable, to ensure business continuity and to show adaptability in the face of new challenges. Under the Council of Economic and Development Affairs, we will establish a strategic management office to focus on coordinating all government programs and ensuring their careful alignment with the national Vision. The office will also prevent gaps, duplication or contradiction between agencies’ policies and programs, and ensure that all components of the Vision are detailed in proper sectoral strategies. We will also establish a Decision Support Center at the Royal Court to support decision-making through analytical and evidence-based information and reports.
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OUR COMMITMENT TO ACHIEVING THE GOALS OF THESE PIVOTAL PROGRAMS AND OUR COLLECTIVE CONTRIBUTION SHALL BE THE FIRST STEP TOWARDS ACHIEVING SAUDI ARABIA’S VISION FOR 2030. WE WILL CONTINUE TO LAUNCH NEW PROGRAMS IN THE UPCOMING YEARS AS REQUIRED, AND WE WILL CONTINUOUSLY REVIEW AND ASSESS OUR PERFORMANCE IN ACHIEVING THIS VISION
