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In a push to diversify its economy, Saudi Arabia is determined to increase the role of the private sector in the development of its transport infrastructure, as well as in the operation of seaports, airports and related supply chains. Public-private partnerships are being pursued to fund several key schemes, while a number of the country’s publicly operated facilities, such as airports, are being readied for full privatisation. However, there are a series of challenges ahead in the Kingdom’s pursuit to meet its Saudi Vision 2030 objective of leveraging its location at the crossroads of three continents. Faced with a decline in the country’s ranking among global indices of competitiveness and logistics since 2016, when the national development plan was unveiled, the budget for 2018 – introduced in December 2017 – includes an 86% increase in planned government expenditure on infrastructure and transportation, from SR29bn ($7.7bn) to SR54bn ($14.4bn). This chapter contains an interview with Nabeel Al Amudi, Minister of Transport; Rumaih Al Rumaih, President, Public Transport Authority; and Saleh bin Nasser Al Jasser, Director-General, Saudi Arabian Airlines.

Accounting for 6% of GDP and 10% of non-oil GDP in 2016, according to the Communications and Information Technology Commission, Saudi Arabia’s ICT sector plays an important part in the Kingdom’s economy. Spending in the sector exceeded SR130bn ($34.7bn) in 2016, and in 2017 it was expected to reach SR138bn ($36.8bn) despite economic headwinds. The government’s recently finalised economic strategy places ICT at the centre of the nation’s development, and telecoms players, hardware and software providers, and service operators all stand to benefit from the array of state-directed initiatives it has set in motion. Regulatory changes however have added pressure to ICT companies’ bottom lines over the past year, and the industry is responding by reining in expenditure and shifting the strategic focus to new products and services. This chapter contains interviews with Abdullah Alswaha, Minister of Communication & Information Technology; Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman, Zain Saudi Arabia; and Essam Alshiha, CEO, Saudi Business Machines.

Bold strategies to use industry as an engine of economic change could see new gold mines, plastics factories and medical laboratories boost growth, prosperity and jobs. While raising the profile of private enterprise, the government is planning to inject capital into promising sectors, but it is also setting ambitious targets for itself and for industry. Though the launch of Vision 2030 coincided with a difficult year for many industries in the Kingdom, it has served to galvanise industrialists and government ministries as they work towards recovery and future growth. The shift towards privatization and the increasing focus on SMEs are both positive indicators of the government’s commitment to implement the much-needed structural changes outlined in the development plan. This chapter contains an interview with Khalid Al Mudaifer, President and CEO, Ma’aden; Mohammed Al Badr, Managing Director, Saudi Chemical; and Khalid Al Amoudi, CEO, Saudi Red Bricks.

This chapter contains an overview of the legal framework in which local and foreign investors operate in Saudi Arabia including a look at the recent restructuring of the insolvency law and an examination of the new reforms and regulations aimed to boost foreign investment into the country. This chapter contains a viewpoint from Fahad Abuhimed, Managing Partner, Abuhimed Alsheikh Alhagbani Law Firm in cooperation with Clifford Chance.

This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia including an explanation of the Value-added tax introduced on January 1, 2018, a summary of the parallel systems for zakat and corporate income tax, and a rundown of the taxation treaties in place to help promote foreign investment. This chapter contains a viewpoint from Riyadh Al Najjar, Country Senior Leader, PwC Saudi Arabia.

Nestled between two seas and two continents, Saudi Arabia stretches over 2.1m sq km, an area as large as Western Europe. Its diverse landscapes offer a wide variety of scenery; while its rich history, culture and significance in the Muslim religion attract visitors from around the world, making it one of the most visited countries in the world. At around 31.7m – one-third of whom are expatriates – the Kingdom has the largest population of any country in the GCC region providing it with a sizeable source of domestic tourism. Furthermore, Saudi Arabia had an estimated GDP of $689bn in 2017, ranking it as a high-income country, meaning its inhabitants have substantial purchasing power that could be flexed in the travel sector. It comes as no surprise, then, that developing the country’s tourism sector has become a key priority in recent years, especially given that Saudi Arabia is seeking to boost diversification of its domestic industries away from hydrocarbons dependency. This chapter contains an interview with Prince Sultan bin Salman bin Abdulaziz Al Saud, Chairperson and President, Saudi Commission for Tourism and National Heritage.