Saudi Arabia’s National Transformation Program (NTP) has surpassed its foundational objectives, significantly contributing to the nation’s prosperity and the realization of Vision 2030. This far-reaching economic reform initiative, inaugurated in 2016 under the guidance of Crown Prince Mohammed Bin Salman, was designed to diversify the economy, enhance the business climate, and foster employment, thereby ensuring the long-term well-being of citizens, residents, and investors.
The NTP was charged with achieving over one-third of Vision 2030’s aims, successfully addressing 34 out of 96 goals. The progress report for 2023 reflects a series of triumphs that have exceeded initial expectations, covering foreign direct investments (FDIs), support for small and medium-sized enterprises (SMEs), and improved conditions for expatriate workers.
“We at the National Transformation Program are immensely proud of these inspiring achievements. The Program was launched in 2016 with Saudi Vision 2030, and we have since worked diligently and with greater ambition. We established new initiatives, monitored the impact’s sustainability, and collaborated with all our stakeholders,” stated Thamir Al-Sadoun, CEO of the NTP.
Thanks to strategic reforms, Saudi Arabia is now the world’s second-best economy for business, as per the Global Entrepreneurship Monitor Report for 2022. The country’s strategic location, robust industrial infrastructure, and private sector incentives have contributed to this status.
In 2023 alone, the Kingdom issued over 8,500 foreign investment licenses, marking an increase of nearly double from the previous year. Riyadh has become a magnet for global investors, with more than 180 companies setting up regional headquarters. Furthermore, FDI inflows reached $32.5 billion in 2022, while the nation dominated the Middle East and North Africa region, claiming 52 percent of the total Venture Capital Investment, amounting to $1.4 billion.
These achievements have positioned Saudi Arabia as an ideal investment hub, evident from its advancement in the International Institute for Management Development’s World Competitiveness rankings—third in the G20 and 17th out of 64 countries. This recognition came as the Saudi economy experienced the highest growth among G20 nations in 2022, bolstered by NTP initiatives that empowered the private sector and enhanced the investment climate.
In key indices, Saudi Arabia secured top ranks in economic performance, government efficiency, and business efficiency. A testament to the streamlined processes is the fact that acquiring an investment license in the Kingdom now requires just one business day and two documents.
Other drivers of Saudi’s economic ascent include over 148 agreements and memorandums of understanding with global partners, the expansion of 32 major national companies, and the progression of 70.6 percent of promising companies to become regional and global leaders.
Notably, the Saudi labor market has also seen major advances, with unemployment rates falling to 8.6 percent in the third quarter of 2023 from 12.8 percent in 2017. Expatriate working conditions have improved significantly, with a compliance rate of 86.9 percent with the wage protection system. Women’s economic participation has nearly doubled to 35.9 percent, and their presence in managerial positions has increased substantially.
The small and medium enterprises boom
The growth of SMEs in the Kingdom has been remarkable, increasing by over 200 percent since Vision 2030’s inception. By the end of the third quarter of 2023, there were 1.3 million SMEs, supported by $2.67 billion in financial aid and employing 6.7 million people. The establishment of the Small and Medium Enterprises Bank in 2022 aims to bolster this sector further by providing enhanced financing solutions.
SMEs are now a cornerstone of the nation’s economic development and a key player in achieving Vision 2030 goals. The NTP has supported various programs and services provided by the Small and Medium Enterprises General Authority, including the ‘Tomoh’ program, which has facilitated the listing of 18 enterprises on the Saudi Stock Exchange’s Nomu market.
Mohammed Al-Tuwaijri, Chairman of the NTP Committee, reflected on the program’s success, “The National Transformation Program’s 2023 achievements report sheds light on its impact after seven years since its launch. Through this Program, the Vision continues to develop the infrastructure for the benefit of citizens and residents, investors looking to capitalize on the enormous opportunity, and tourists visiting Saudi Arabia.” He expressed pride in being part of the journey and the commitment to building sustainable infrastructure for world-class work and living environments.