Exclusive: Analysts react to Saudi Vision 2030

While analysts largely welcomed Saudi Arabia Vision 2030, a broad set of economic reforms set to transition the kingdom into a post-oil era, most foresaw difficulties ahead in implementation.  

John Sfakianakis, Director of Economics at the Gulf Research Center, former advisor to Saudi finance ministry:

"He's trying to change the country and force them to think differently and he's on the right track in doing so," he said in reference to Deputy Crown Prince Mohammed bin Salman. "Not an easy task but at least he's young and understands the challenges facing the economy and what lies ahead. He has unique characteristics that combine dynamism, perseverance, thirst for work and delivery."

Jason Tuvey, Middle East economist, Capital Economics:

“In all… there was very little that was new in the Saudi government’s ‘Vision 2030’ and there are still several key areas that policymakers have yet to address.

“In short, we were hoping for more, although we will wait with baited breath the ‘National Transformation Plan’ (that will be announced in May or early June) before passing full judgement on the government’s reform agenda.”

Khatija Haque, head of MENA research, Emirates NBD: 

“While the Vision 2030 has reassured the market that the authorities have a plan to reduce Saudi Arabia’s vulnerability to oil price shocks, execution of the strategy will be the key determinant of success.”

“Implementing this ambitious program will require broad-based support from different segments of the Saudi society, as the structural changes it requires are significant are far reaching.”

Terry Smith, CEO & managing director at Bluewater Global Advisors in Riyadh:

“The plan is outstanding and 10 years behind schedule. It is well thought out and will plug one major factor that has so far been lacking in Saudi Arabia—accountability. With the implementation of this plan, the Saudis will have to be much more accountable. We may even see some projects terminated that haven't neared completion despite having funds poured into them.” 

“The majority of Saudi citizens— 65 percent of the population is below the age of 33— want to keep pace with the rest of the world. And now, with this development plan, they have a chance to do so.”  

Mohammed A. Alsuwayed, Head of Capital & Money Markets, Adeem Capital in Riyadh:

“The scope of the plan is great because it covers the main three strengths identified by Prince Mohammed.”

“However, it's going to be challenging to implement; first, social changes such as women driving might face significant resistance, and the public employee compensation scheme cannot help motivate employees enough to do their responsibilities.”

Write to Brinda Darasha at brinda.d@argaamplus.com

Abeer Allam contributed to this article