How Saudi Arabia plans to shake up its economy

Saudi Arabia

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By Reuters  http://www.gulfbusiness.com/

In late February, several hundred Saudi officials, company executives and foreign consultants gathered in a luxury Riyadh hotel to discuss how Saudi Arabia’s economy could survive an era of cheap oil.

2a-300x208 How Saudi Arabia plans to shake up its economyOne company manager at the event told Reuters that officials from about 30 Saudi government bodies manned booths in which they described their challenges. Corporate bosses were encouraged to “figure out ways to do partnerships to address those needs, to offer feedback, to complain, and to plan future ventures or even just future meetings,” the manager said. “It was like a private sector version of a national parliament.”

The workshop was part of Saudi government attempts to work out how to restructure the economy so it no longer relies on oil.

The National Transformation Plan (NTP), as Riyadh has dubbed the changes, is expected to be unveiled in the next few weeks. Much is still secret. Ministries have refused to discuss plans in detail and Western consultancies contacted by Reuters declined to confirm their involvement, let alone policy details.

Officials, consultants and executives, though, say the five-year programme is both ambitious and risky. It includes asset sales, tax increases, spending cuts, changes to the way the state manages its financial reserves, an efficiency drive, and a much bigger role for the private sector. More info

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