Saudi Arabia's Vision for the Future: Transforming Industries and Setting Global Standards

As Saudi Arabia celebrates its 94th National Day on September 23, 2024, it provides an? opportune moment to reflect on the Kingdom’s sweeping changes across its economic landscape, particularly in sports, technology, media, entertainment and live events. In this edition of IN THE VALLEY , we explore the Kingdom’s strategic initiatives that are boosting its global standing and examine how these policies could serve as a model for African nations, especially in terms of investment ecosystems.

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A New Era for Saudi Arabia: Saudi Arabia's Blueprint for Economic Diversification beyond Oil Dependency

Launched in 2016, Saudi Arabia's Vision 2030 , is a comprehensive framework aimed at diversifying the Kingdom’s economy and reduce its reliance on oil revenues, which currently account for approximately 40% of GDP and 75% of fiscal revenue. Through this vision, the country aims to significantly increase the contribution of non-oil sectors to GDP. Key targets include growing the share of small and medium-sized enterprises (SMEs) from 20% to 35% by 2030, and attracting over $150 billion in foreign direct investment (FDI) by 2025, increasing FDI's GDP contribution from 3.8% to 5.7%

The Kingdom has also set ambitious goals for tourism, aiming to welcome 150 million annual visitors by 2030 , with plans to invest $1 trillion in tourism infrastructure. This includes initiatives to increase Umrah visitors from 8 million to 30 million annually and develop key cultural and entertainment projects, such as establishing the largest Islamic museum in the world and promoting UNESCO heritage sites. The introduction of an e-visa system for citizens of 57 countries has made the Kingdom more accessible to international tourists. The Red Sea and NEOM projects exemplifies the Kingdom’s plan to create a world-class tourism destination with the former featuring? over 50 hotels and 8,000 hotel rooms, and the latter is set to redefine urban living with its futuristic design and amenities.

Empowering Future Sectors: Sports, Technology, Entertainment, and Media

The Public Investment Fund (PIF) plays a pivotal role not only in major technology investments like AI but also in financing projects in transformative sectors such sports, entertainment and media. Projected to exceed $2 trillion in assets by 2030, the PIF is set to become one of the world’s largest sovereign wealth funds (Statista ). In addition to economic diversification, Saudi Arabia has invested over $6 billion in the sports sector since 2021, hosting prestigious events like the LIV Golf Tournament,? the BOXING, MMA, UFC exclusive Fight Nights series, Diriyah Formula E race, or MotoGP GrandPrix and the Saudi Arabia Formula 1 Grand Prix, becoming a champion of sport diplomacy and reinforcing its presence on the global sports stage (Sportfive ).

The Kingdom's entertainment and media sector has also seen significant investment, driven by Saudi Entertainment Ventures (SEVEN), a firm committed to elevating Saudi Arabia’s cultural footprint. These investments are reshaping the nation's identity and boosting its soft power globally according to PIF.

These strategic investments in sports, technology, entertainment and media are reshaping the nation’s identity as one of progress and openness and boosting its soft power on the world stage.

The Opportunity for Africa: Drawing Lessons from Saudi Arabia’s Vision 2030

Africa presents a wealth of investment opportunities across various sectors, driven by its dynamic economic landscape and abundant resources. The continent is projected to experience robust economic growth, with six of the world's fastest-growing economies located here. The technology sector is booming, with a surge in startups and digital transformation, particularly in fintech and e-commerce. The continent is witnessing a burgeoning interest in investment opportunities, particularly in tourism and technology. Countries like Rwanda, Kenya, South Africa, and Morocco are following Saudi Arabia's lead by improving infrastructure and forging international partnerships to bolster tourism. For example, Kenya's tourism sector is expected to reach 2.5 million visitors by 2025 , driven by enhanced infrastructure and strategic marketing efforts By adopting strategies similar to those implemented by Saudi Arabia, Africa can capitalise on the youthful demographic tailwinds which it currently enjoys facilitating growth in these underserved sectors and cement its position as a strong pillar in the global economy.

Africa, with its dynamic economies and abundant resources, presents a wealth of investment opportunities across several sectors. According to the African Development latest Macroeconomic Performance and Outlook (MEO), eleven of the world’s 20 fastest-growing economies in 2024 are in Africa , and there is tremendous growth potential in technology, fintech, and e-commerce.

Rwanda’s Success Story: Borrowing a Leaf from Saudi Arabia’s Playbook

Rwanda stands out as the African nation with approaches aligning the most with Saudi Arabia. Rwanda’s government implemented strategic policies aimed at boosting tourism and enhancing its global image, mirroring the steps taken by the Kingdom. Over the past few years, Rwanda experienced a remarkable increase in tourism revenues, driven by its commitment to promoting the country as a premier travel destination. According to the Rwanda Development Board’s 2023 Annual Report , Rwanda welcomed more than 1.4 million tourists in 2023, an increase of 35% compared to 2022 largely due to improved connectivity and government promotion efforts. The tourism sector is now the largest source of foreign exchange earnings for Rwanda, with revenues reaching $620 million in 2023.

Additionally, RwandAir announced record revenues and ambitious plans to double its fleet to 25 aircraft over the next five years, a testament to the country’s strategic efforts to enhance connectivity and tourism (CH-Aviation ). Rwanda's remarkable growth reflects its government’s dedication to positioning the nation as a hub for international collaboration and innovation.

These results are not accidental. #Rwanda has spent years strategically leveraging partnerships with international clubs and major sporting players to boost tourism. The country's collaboration with renowned names like Paris Saint Germain, Arsenal, and the Basketball Africa League has yielded impressive results. In 2022, Rwanda welcomed over a million visitors, generating $445 million in tourism revenue. This success has been further acknowledged with Rwanda winning the Public Action of the Year Trophy at the 2023 Sport Impact Awards in Senegal for its efforts in sports tourism development.

Building on this recognition, Rwanda recently announced a groundbreaking five-year partnership with German football giant Bayern Munich. This collaboration aims to establish a football academy in Rwanda, showcasing Visit Rwanda branding at the iconic Allianz Arena, and organizing activities to promote tourism and investment opportunities in the country. Rwanda's strategic approach extends beyond sporting partnerships, with plans to host major events for FIFA and the International Automobile Federation (FIA )in December 2024,? as well as the World Cycling Championships in 2025. Rwanda is also actively pursuing the opportunity to host Formula1 race very soon. Lots of excitement are ahead for Rwanda, and we will be following closely! Stay tuned.

Rwanda's commitment to fostering sports tourism and driving economic growth through innovative partnerships sets a remarkable precedent for other nations aspiring to enhance their global visibility and attractiveness. The nation's proactive initiatives underscore a well-thought-out strategy that marks just the beginning of its journey towards establishing a prominent presence on the world stage.

?Paving the Way for Africa’s Future Growth

This 94th National Day of Saudi Arabia serves as a reminder of the transformative power of strategic investments in sports, technology, entertainment and media. These industries are massively underserved across Africa. However African Governments and their private sector, by emulating some of Saudi Arabia’s initiatives, can capitalize on their unique strengths, attract global investments, expand their tourism sectors, create jobs for the youth and improve their soft power.

A delegation of Silverbacks Holdings will be attending the PIF sponsored Summit Future Investment Initiative ’s 8th Edition (FII8) and our Chairman Ibrahim Sagna will be a distinguished speaker at panel focused on entertainment and sports in the inaugural New Africa Summit.? If you happen to be in Riyadh around the 27-30th of October, then do not hesitate to book a meeting with us.

As these dynamic shifts unfold, we at IN THE VALLEY remain committed to bringing the stories shaping Africa’s future as a global hub in entrepreneurship, innovation, and investments.