Saudi Crown Prince Mohammed bin Salman stated that oil has significantly served the Kingdom's economy over many years, but continued dependency on it affects the future. He mentioned that there are enormous opportunities outside the oil sector in Saudi Arabia. In a televised interview on Tuesday night, he revealed ongoing discussions with a global energy company to sell 1% of shares in Aramco, the world's leading oil manufacturer, and indicated a move to sell stakes in Aramco to foreign investors over the next two years.
In the interview, the Crown Prince mentioned that unemployment rates are expected to fall to 11% by the end of this year, reaching 7% by 2030, down from the current 14%. He announced an adjustment in the Public Investment Fund’s targets for asset size to 10 trillion riyals by 2030, up from the previous target of 7 trillion. He pointed out that the fund's investment spending within Saudi Arabia will reach 160 billion riyals in 2021, compared to 90 billion riyals last year, emphasizing that this figure exceeds the current state budget's investment expenditure.
Regarding the return on investments from the Public Investment Fund, the Crown Prince explained that returns currently range from 6% to 7%, compared to 2% to 3% in previous years, with the aim for overseas investments to achieve returns exceeding 10%. He clarified that the fund’s current contribution to state revenues is zero, as the primary goal is to support future growth, and all investment returns are reinvested to contribute later to state revenues in a post-oil economy.
### Housing Sector in 5 Years
In a televised meeting marking the fifth anniversary of the launch of Vision 2030, Crown Prince Mohammed bin Salman emphasized that oil has played a significant role in building the Kingdom's economy in past years, generating large financial surpluses when the population was less than 3 million. However, with the growing population and the declining importance of oil, it became necessary to build an economy based on the Kingdom’s diverse capabilities across various sectors such as tourism, mining, services, and logistics.
Discussing the achievements of Vision 2030 in the past five years, the Crown Prince highlighted that in the housing sector, the home ownership rate among citizens has risen to 60%, close to the target of 62% set for 2030, which may lead to revising the vision target to 70%. He noted that the Public Investment Fund plays a significant role in achieving the housing sector’s goals, including the establishment of the "Roshn" company to provide one million housing units.
Regarding the implications of Vision 2030 on the quality of life in Saudi Arabia, the Crown Prince pointed out that reducing unemployment rates and increasing incomes through the creation of new job opportunities will directly contribute to improving citizens' living standards. He asserted that increasing taxes is not on the table and there is no move towards imposing income tax. However, he clarified that the recent increase in the value-added tax to 15% is a temporary decision subject to modification later.
