Saudi Arabia’s government released on Monday the National Transformation Plan, a 110-page list of policies and targets for the 2016-2020 period that aim to wean the economy off its dependence on oil.
Following are key aspects of the plan, which can be found in full here
Core goals
– Create more than 450,000 jobs outside the government sector by 2020
– Have the private sector fund 40 percent of projects during the period, reducing financial pressure on the state
– Have more than 270 billion dirhams ($72 billion) of goods and services produced locally instead of abroad, reducing imports and creating job opportunities
Justice Ministry
– Slash average resolution time for commercial cases to 395 days from 575 days; improve enforcement of contracts
Finance Ministry
– Prepare and implement income tax on residents; prepare and implement unified income tax (no details given)
– Apply fees on registration of real estate and on profits from real estate
– Raise non-oil state revenues to 530 billion riyals in 2020 from 163.5 billion riyals in 2015
– Cut public salaries and wages as a proportion of the state budget to 40 percent from 45 percent
– Balance budget by 2020; government debt would rise to 30 percent of gross domestic product from 7.7 percent
– Raise Saudi Arabia’s credit rating to Aa2 from A1
– Increase state assets to 5 trillion riyals in 2020 from 3 trillion riyals
Economy Ministry
– Reduce percentage of delayed state projects to 40 percent from 70 percent
– Cut electricity and water subsidies by 200 billion riyals; reduce non-oil subsidies by 20 percent
Energy, Industry and Mineral Resources Ministry
– Boost annual non-oil commodity exports to 330 billion riyals from 185 billion riyals
– Lift percentage of power plant electricity generation through “strategic partners” to 100 percent from 27 percent
– Boost dry gas production capacity to 17.8 billion standard cubic feet per day from 12 billion
Health Ministry
– Spend 4.7 billion riyals to reform and restructure primary health care
Communications Ministry
– Privatise the Saudi Postal Corporation
Ministry of Labour And Social Development
– Increase number of housing units provided to very needy families to 101,700 from 10,400
Housing Ministry
– Spend 2.8 billion riyals on a loan guarantee programme and take other steps to promote home ownership
Tourism Commission
– Raise number of direct jobs in tourism sector to 1.2 million from 830,000
Saudi Arabian General Investment Authority
– Raise direct foreign investment to 70 billion riyals from 30 billion riyals
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