Reflecting on a Nation’s Progress and Bold Vision for the Future

"We dream, we achieve." This powerful motto continues to guide Saudi Arabia as it celebrates its 94th National Day on September 23, 2024. While deeply rooted in history—commemorating the unification of the Kingdom in 1932 by His Royal Highness King Abdulaziz Al Saud—this day has evolved into a celebration of the Kingdom’s rapid socio-economic progress and an opportunity to reflect on its ambitious Vision 2030.

Saudi Arabia’s transformation isn’t just a buzzword. It's a strategic roadmap reshaping the Kingdom across industries, driving workforce reforms, and establishing itself as a global hub for business, technology, and culture. Under Vision 2030, the Kingdom is diversifying its economy, empowering its people, and positioning itself as a leader on the global stage. This year's National Day offers a moment to highlight the profound changes underway and the exciting journey ahead.

Vision 2030, launched in 2016 by HRH King Salman bin Abdulaziz and HRH Crown Prince Mohammed bin Salman, is centered on three key pillars:

1. A Thriving Economy - Focused on reducing reliance on oil by fostering new industries and encouraging international investments.
2. A Vibrant Society - Focusing on inclusivity, cultural reform, and positioning the Kingdom as the heart of the Arab and Islamic world.
3. An Ambitious Nation - Leveraging Saudi Arabia’s strategic location to serve as a crossroads linking Africa, Europe, and Asia.

The vision's impact on Saudi Arabia's workforce and economy has been profound. Research by PwC highlights that since Vision 2030’s launch, Saudi Arabia’s non-oil revenue has increased by 48%, demonstrating the early success of economic diversification efforts. Further, employment opportunities for Saudi nationals, particularly women, have grown dramatically.

Saudisation, or Nitaqat, is central to Vision 2030, increasing Saudi nationals' participation in the private sector, traditionally dominated by expatriates.

In 2024, new Saudisation targets were introduced across key industries such as engineering, IT, and hospitality, with mandates for over 50% local employment. These changes are reshaping the labor landscape. Research from Oxford Economics reveals that Saudi Arabia has seen a 15% increase in local employment since 2019, reflecting the success of this policy.

• Increased Female Participation - Female labor force participation hit a historic high, with women now making up over 35% of the private sector workforce, up from 20% in 2018. Initiatives like Wusool, which subsidizes transportation for working women, and recent amendments to labor laws (extending maternity leave to 12 weeks), have been instrumental in this transformation.
• Upskilling & Reskilling Programs - Programs like Tamheer and partnerships with global tech companies are providing young Saudis with skills in AI, cybersecurity, and data science, preparing them for future-ready industries.
• Sector-Specific Saudisation - Industries such as healthcare, construction, and hospitality are seeing targeted efforts to promote local employment, with the government offering subsidies to companies that meet these goals.

During my visit to Riyadh in 2023, I saw firsthand how Vision 2030 is transforming society. The freedom now available to young Saudi women and men is remarkable. My Uber ride with Maha Mutib , my then colleague, to scout a venue for a workshop was a reminder of the exciting changes taking place. We moved through the city with ease, and the energy was palpable. The shift is real, and it's inspiring to see women like Maha contributing in meaningful ways to Saudi’s vibrant future.

Regional Influence

Saudi Arabia’s trajectory mirrors the successful urbanization blueprint of the UAE, particularly Dubai, which has emerged as a global hub for business, innovation, and tourism. Similar to Saudi Arabia’s Vision 2030, Dubai's strategic development plan has focused on diversification, attracting foreign investment, and modernizing infrastructure while preserving its cultural heritage.

In fact, the UAE’s tourism sector has flourished by blending the old and new—inviting the world to explore historical sites like the Al Fahidi Fort or Sheikh Zayed Grand Mosque alongside ultramodern attractions such as the Burj Khalifa and Dubai Mall. Saudi Arabia is taking a similar approach, developing projects like NEOM and AlUla, which present ancient heritage in a futuristic, sustainable framework. As both nations continue to develop, they are not just constructing skyscrapers but creating cultures of inclusivity and innovation that resonate globally.

Navigating Geopolitical Challenges

The West Asia conflict and ongoing geopolitical tensions have inevitably impacted the region's economy, but Saudi Arabia and its Gulf neighbors have shown remarkable adaptability. Economic strategies have increasingly pivoted toward building resilient, self-sustaining economies, less reliant on oil exports. The region’s emphasis on tech innovation, sustainable energy, and knowledge-based industries is positioning it to withstand external shocks, ensuring long-term prosperity.

The tourist e-visa has revolutionized business travel, making Saudi Arabia more accessible for international professionals. This shift, combined with Saudi Arabia's push to become a global tourist destination, is attracting millions of visitors. Whether for business or leisure, the Kingdom is opening its doors to the world. According to the World Travel and Tourism Council, tourism contributed $79 billion to the economy in 2023, up from $65 billion in 2021. This is an exciting indicator of Saudi Arabia's growing appeal.

A useful indicator of private consumption is point-of-sale (POS) and e-commerce transactions. Both metrics have been on a steady rise since 2017, reflecting strong consumer demand. In fact, 2024 is on track to set a record for POS and e-commerce transactions, with Q1 sales already surpassing those from the same period in 2021 by an impressive 200%.

Opportunities and Challenges

While Saudisation has opened new doors for local talent, it presents challenges for businesses reliant on foreign workers. Many companies have had to rethink hiring practices and invest heavily in training programs to bridge skill gaps among local workers. However, this presents long-term opportunities for sustainability, with Saudi nationals taking on more leadership roles and driving innovation.

Saudi Arabia's 94th National Day is more than a celebration of its past—it’s a beacon for the future. The reforms under Vision 2030 are building a robust, inclusive, and dynamic economy that reflects the aspirations of its people. Whether it's Saudisation, the rise of female participation, or the ease of business travel, Saudi Arabia is setting the stage for long-term prosperity.

As someone who has seen these changes up close, I can’t wait to see how the Kingdom continues to evolve. If you're setting up in the region, AHAM Leadership Consulting can help with specialized leadership programs and culture-building workshops tailored for your teams.

Let’s build the future, together.

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