Saudi Arabia has approved the National Transformation programme, a challenging strategy to move the kingdom’s economy beyond oil, with the intention of proceeding to diversification, privatisation of substantial state assets such as the energy giant Aramco, tax increases and spending cuts. King Salman bin Abdulaziz assured the cabinet backing for the Saudi Vision 2030 plan in a short announcement on television on Monday, in which he enjoined his subjects to cooperate together to ensure future success. Mohammed bin Salman, the king’s son and deputy crown prince, gave details of the economic reforms he’s mostly in charge of. It includes the creation of a 2tn dollars sovereign wealth fund, and at the same time tactical economic reforms. Bin Salman confirmed that the kingdom would sell approximately 5% of Aramco, which will become a holding company with subsidiaries listed through an initial public offering. According to him, the country could live without oil by 2020. 

Social concerns are a key issue driving the transformation strategy. Considering that half of the Saudi population is under 25, job creation is crucial if the kingdom wants to avoid knowing the same civil unrest that has started Arab spring protests all over the region. But the establishment of higher taxes (even indirect ones) could lead to claims for change that might weaken the autocratic system.
It is yet uncertain whether the economic transformation will encourage the kind of social changes many believe are necessary to really modernise the country: for instance allowing women to drive, or making the legal system more transparent. Finally putting an end to the human rights abuses that continually attract the attention of the international community.

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For more information about Mohammed Bin Salmad, click here.