The Kingdom’s future is Young and Sustainable
The “End of Oil” is not yet there for Saudi Arabia, as the latter still holds one of the largest oil and gas reserves in the world. Its current geopolitical power position still is mainly based on its role within OPEC, as the main oil producer. At the same time, the Kingdom is undergoing vast changes, as Saudi Crown Prince Mohammed bin Salman’s Saudi Vision 2030 is being implemented. The aggressive and structural change to society and the country’s economy, as indicated in Vision 2030, currently is taking off. A vast line up of Giga Projects, such as Qiddiya, Red Sea Islands and the well-documented NEOM City of the Future projects, are hitting the headlines, but more is being done at present.
Riyadh is setting up a diversification strategy to wean the Kingdom of its oil and gas addiction, trying to change the country from being a rentier state into a diversified and sustainable society for the future. Faced with increased changes internally, as it is faced with high youth unemployment, a lack of SMEs, and internal power politics, the need is clear to generate high volumes of jobs, support female inclusion, generate additional non-oil based revenues, and open up the country for the 21st century. At the same time, Saudi Arabia is looking increasingly to the east. Its growing cooperation with Russia, China and India, will cause not only geopolitical shifts impending historical economic and military alliances, but also will open up the local markets for more international competition. Western companies and investors will be confronted increasingly by Asian counterparts, in which not only technical or economic issues will play a role, but geopolitical assessments too.
Regional cooperation and confrontation at the same time is taking its toll, presenting international entities with the need to assess their own future, and realign their strategies for the Kingdom not only on economic and financial basis but also on political and strategic levels. Main opportunities however still exist, as the economy is diversifying, such as infrastructure, airports/ports, high-tech, food and agriculture/water, defence and security.
Be informed about the dynamics and opportunities. Contact us to receive information about the ever-changing landscape.