Saudi Arabia announces investment plan to boost private sector
Mohamed ben Salman in video-conference, November 20, 2020. AP - Bandar Aljaloud
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Nearly 3,200 billion dollars will be invested by 2030 to diversify the economy of the kingdom, which is very dependent on oil rents.
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Create hundreds of thousands of jobs in the years to come.
It is also the hope of the Saudi state through this mega-investment plan, which has the primary objective of diversifying the country's economy and developing the private sector.
Saudi Arabia is still very dependent on oil revenues
which constitute more than half of the kingdom's income.
Since early 2020, the country has been faced, like the rest of the world, with the health crisis which deprives it in particular of the windfall of religious tourism and the drop in oil prices.
Consequence: the unemployment rate is now around 15%.
Financing by dividends from large companies
The crown prince Mohamed bin Salman announced it: this plan will be financed in large part by the Saudi public investment fund and the 24 largest companies in the country.
These groups agreed to lower the dividend level so that they could inject the money into this government program in exchange for financial incentives.
The crown prince has not yet specified where the rest of the amount will come from.
He cannot count on foreign funding.
The kingdom is struggling to attract foreign investment because of its poor international image.
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See also: Saudi Arabia wants to plant 10 billion trees
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Saudi Arabia
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