The document discusses Saudi Arabia's long term vision for its economy. It outlines Saudi Arabia's current economic strengths such as its oil and gas resources and young population. However, it also notes challenges like high unemployment and over-reliance on oil. The vision calls for diversifying the economy away from oil, developing a knowledge-based economy focused on high technology, and improving living standards. The goal is to transition Saudi Arabia to a more sustainable economy for the future.

1. SAUDI
ARABIA
AND LONG TERM
VISION
Ha The He

2. OUTLINE
1. General Evaluation
2. Economic Overview
3. Growth Model

3. GENERAL EVALUATION
Challenges
Opportunities
Strengths

4. Its growth curves in many of
these areas are steeper than
almost any other country for 3
decades.
STRENGTHS
1. Excellent record of economic
success.
2. Political stability.
3. World-class infrastructure.
4. Vast Oil and Gas Resources.
5. Good execution of key projects.
6. Geography diversity.
7. Young and healthy population
is known as the second to none;
a major element of competitive
advantage for the Saudi
economy
deep rooted and strong
cultural and religious
traditions; high priorities on
the human development
excellent coast lines; the
bridge between East and West
the largest
reserves in the
world;
estimated to be
262.7 billion
barrels
60% people are
under the age of 18

5. CHALLENGE
S
1.Challenge of Employment issues
2.Challenge of Poverty reduction
3.Diversification of the economy

6. OPPORTUNITIES
1. Investment in private sector
2. Demand for oil still increases

7. ECONOMIC OVERVIEW
1.Gross Domestic Product (GDP)
2.Consumer Price Index (CPI)
3.Financial System
4.Unemployment

8. GDP
GDP in the top 20 (19th)
GDP per capital: $31,275 (PPP; 28th)
There is an income gap of Saudi
Arabian
Problem about poverty reduction

9. GDP

10. CONSUMER PRICE INDEX
(CPI)

11. INFLATION
RATE
Both CPI and Inflation rate of
Saudi Arabia dramatically
decrease in 2012 because the
government has been
successful in controlling the
impact of the Economic Crisis
(2008).

12. FINANCIAL
SYSTEM
• The government has huge amounts of cash.
• Public debt declined from 104 percent of GDP in 1999 to about 13 percent in
2008 easy to response/ restrict the impact of economic crisis (2008)
• SAMA (Saudi Arabia Monetary Agency)’s operation has built up a very
confident financial system; liquidity both in Saudi Arabian riyals (SR) and in
dollars; ensure the safety of local banks and bank deposits.
• Foreigners only own about 1% of stock in the Saudi market.
• But still be significantly affected by oil price decline.

13. FINANCIAL
SYSTEM

14. UNEMPLOYMENT

15. GROWTH MODEL
Diversification
Knowledge-
based economy
Improve living
standards

16. DIVERSIFICATION
• Fact: mainly depends on oil industry; not good for long-run development
because of the limitation of natural resource
Diversification: Chemicals & Industries, Food & Consumer Goods,
Telecom & ICT, Financial Services, Transport & Utilities.
Decrease in oil-sector
(Oil sector decreases from 27.5% of GDP 2004 to 17.3% of GDP 2025)
Private sector: main engine in the future

17. KNOWLEDGE-
BASED ECONOMY
• The targeted economic development requires high degrees of
skill and specialization. The volume university graduates will
grow at an average annual rate of 8.4 percent.
• Focuses on developing human capital and cutting edge
technologies.
• High technologies compensate
for experience.

18. KNOWLEDGE-BASED
ECONOMY
• Establishing many centers dealing with professional trainings and researches.
Ex: Saudi Aramco, officially the Saudi Arabian Oil Company has the training
and development budget about $1 billion per year - the “Great Grew Change”
sponsoring more than 2,000 young men and women in university studies in Saudi
Arabia and around the world.
Cutting-edge technologies for water desalination and water re-use for potable,
non-potable and industrial water serving Saudi Arabia.
Use high technology to increase the productivity of exploiting oil.

19. IMPROVE LIVING
STANDARDS
1.National employment
2.Poverty reduction
3.Gender discrimination
 4.7 million
foreign
employees over
total 8.55million
 unemployment
rate is still high

20. CONCLUSION
• Strong and safe economy; But depends so much on oil reserve
• Need to diversify; increase private sector.
• Cutting-edge technologies and Knowledge-based economy;
• Improve living standards
=> Sustainable development

21. THANK YOU FOR YOUR ATTENTION!! (: