Saudi Vision 2030

In an exclusive interview with Al Arabiya News Channel on Monday, Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman discussed the kingdom’sVision 2030 roadmap and pledged to end Riyadh’s dependence on oil revenue by 2020.

Among the themes raised in the interview, conducted by Al Arabiya News Channel’s General Manager Turki Al-Dakhi, were plans to put oil giant Aramco’s shares in an initial public offering, the Saudi public investment fund, a Green Card scheme, tourism, expats, defense and further details on the Saudi Vision.

As part of the new strategy, Saudi Arabia will sell less than 5 percent of oil giant Aramco’s shares via a partial IPO, the prince said, adding that it is set to be the “biggest IPO in history.”

He also said he expected Aramco to be valued at more than $2 trillion, and that he wanted it to be transformed into a holding company with an elected board, and then added that subsidiaries of the company would also be sold by IPO.

“The 5 percent is from the parent company,” he said. Aramco is the world’s leading oil producing company, with about 10 million barrels per day of output, or about 10 percent of global production.

Prince Mohammad said the partial IPO will turn Saudi Arabia into an investment-driven economy and will turn the kingdom into a “global player.”

He added: “The kingdom can live in 2020 without any dependence on oil … The Saudi addiction to oil has disturbed development of many sectors in past years.”

“We plan to set up a $2 trillion sovereign wealth fund… part of its assets will come from the sale of a small part of Aramco,” the prince said.

The fund will include current Saudi fiscal assets of around $600 billion, as well as returns from the sales of Aramco shares and state-owned real estate and industrial areas estimated to be worth $1 trillion, he said.

“We restructured the fund. We included new assets in the fund, Aramco and other assets, and we fixed the problems of the current assets that the public investment fund owns, both in terms of companies and other projects,” he said.

“Initial data say the fund will have control over more than 10 percent of global investment capacity.”

Green Card, tourism and expats

On the highly-anticipated topic of the Green Card for expatriates in the kingdom, the deputy crown prince said the scheme “will be ready within five years.”

“The Green Card will allow Muslims and Arabs to live in Saudi Arabia for a long time and will be a source for revenue for the government,” he added.

Prince Mohammed also revealed aims for Saudi Arabia to open up for all tourists, “within our beliefs and values,” stresses on the importance of revitalizing culture and entertainment in kingdom.

Discussing plans for Saudi Arabia to build the world’s biggest Islamic museum, Prince Mohammed said: “How can the kingdom be the holiest site for Muslims and have no Islamic museum?”

Transparency and subsidies

The prince said the Aramco IPO would be a key player in advancing transparency in the kingdom.

“In this day and age, no country can afford to not be transparent.

“There are a lot of benefits to the Aramco proposal, and the most important one and the major one is transparency.

“People in the past used to be upset that Aramco’s files and data are not announced, unclear and not transparent. If Aramco is listed in the market, this means it must announce its lists, it must declare every quarter.

“It will become under the supervision of all Saudi banks and all Saudi analysts and thinkers. Or rather, all world banks and all research and planning centers in the world will intensively observe Aramco.”

The prince had previously said that Saudi Arabia is set to limit the impact of subsidy cuts on citizens.

The proposed system being developed by the Saudi government would provide cash to low and middle income Saudis who rely on subsidies.

He said the planned lifting of subsidies, as part of the Saudi Vision for 2030, will be implemented on everyone, “including princes and government ministers. This is a promise.”

The deputy crown prince also confirmed in the interview a government aim to reduce Saudi unemployment from 11.6% to 7%

Defense

On the topic of Saudi Arabia’s military spending, the prince asked: “How could we be the world 3rd largest spender on arms, but we don’t have a military industry?”

He then announced plans to set up a holding company for military industries that would be fully owned by the government at first and listed later on the Saudi bourse.

“We are now about to establish a holding company for the military industries 100 percent owned by the government that will be listed later in the Saudi market …We expect it to be launched by end of 2017 with more details,” the prince added.

Saudi Vision

The prince said the Saudi Vision 2030 has no links to oil prices.

“The Saudi Vision 2030 was going to be implemented regardless of oil price,” he said, in references to prices plunging to a 12-year low of $32 a barrel in January.

“The Vision doesn’t require high-spending but restructuring.”
Explaining the roadmap, he said it mainly focuses on the kingdom’s strengths, being its religion and Arab heritage, Saudi investment ability and location.

Asked on the development of the King Salman bridge over the Red Sea, announced last week in an agreement with Egypt, Prince Mohammad said the crossing “will link Europe and Asia and will provide vast building and investment opportunities.”

He said the bridge will help move billions’ worth of cargo across the Red Sea.

He added: “All infrastructure projects within Saudi Arabia still stand and will be implemented.”

Prince Mohammed, who is spearheading the roadmap, had previously said that National Transformation Plan – part of the Saudi Vision 2030 – will include 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.

Health insurance for all members of the family

The Secretariat general of the Cooperative health insurance council has announced connecting the issuance or Iqama renewal to the availability of health insurance for all members of the family of the resident worker in the private sector; and the provision of health security to all members of the resident’s worker family is considered a basic condition to issue or renew the Iqama for any of them after the electronic linking with the related parties has been done through linking the health insurance with Iqama No. of every member of the resident’s family members.

The Secretariat general of the Cooperative health insurance council Dr. Abdullah Bin Ibrahim Alsherif stated that this step comes as completion to the technology system in connecting the family members of Non-Saudis in the private sector as those insured have amounted to more than 10 million in 29 insurance company.

He stated that Cooperative health insurance system is aiming to provide and organize health care for all resident non Saudis in the Kingdom and the health insurance coverage includes all those to whom this system applies and the members of their families according to the stipulations of paragraph (B) of the fifth article.

Alsherif added that if the employer did not subscribe or did not pay the installments of the Cooperative health insurance for his worker for whom this system applies and his family members who are included with him in the health insurance document he will be obligated to pay all the due installments in addition to pay a financial fine for every individual with the possibility of forbidding him from workers recruitment for a temporary or a permanent period according to article 14 of the Cooperative health insurance regulation.

From his part the manager of information technology department Engineer Ahmed Aldammas that the related parties (The general directorate of passports , the National information center, Alalam company for information security) has exerted a distinguished effort in developing the technical aspects to complete connecting and linking according to the approved specifications that has participated in raising the level of the efficiency of direct data transfer mechanism between insurance companies and the National information center, passports department, Alalam company, and the Secretariat general of the Cooperative health insurance council.

He added that the record of the family’s supporter of the resident labor force will be stopped at the passports until insurance for all the individuals belonging to him is complete in the resident’s ID record and through this the family’s supporter will be able to finalize the transaction of issuing or renewing the Iqama

Business Visit Visa for Saudi Arabia

With a GDP growth of 4%, Saudi Arabia has emerged as one of the fast growing economies in the world. The country comes with a plethora of business opportunities and has opened the gates for foreign companies to invest in the country. The country has one of the most stable economies in the Middle East and is the top oil exporter in the world. Such a fast growth rate has created several opportunities for the investors, exporters and producers. The country is attracting investors from all over the world with its diversified economy and growth. But before performing business in Saudi Arabia, there are several formalities that are required to be completed. The country features, among the top 25 largest economies in the world and as a largest in the Middle East because of its oil exports. It can be a perfect place for business because of its amazing infrastructure and awesome connectivity through the whole country.

Don’t confuse it with a work visa

If you are considering doing business in Saudi Arabia, then you will require having a business visa for the country. A business visit visa is officially meant to visit Saudi Arabia as a representative for some other company from outside Saudi Arabia to work with a company in Saudi Arabia. The business visa is strictly meant for business purposes and it should not be misunderstood as a work visa, both are different. A business visit visa is meant for a short visit to a country such as a sales representative, an investor or a representative of any foreign company. Remember business visa is meant for a short stay and you are not allowed to work for any native company with the business visa and in order to work for any company in the Saudi Arabia, you are required to have a work visa.

Things you need to produce at the time of application

In order to acquire a business visitor visa for Saudi Arabia, firstly you need to have a valid visa and one recent passport size photograph with white background. You are also required to completely fill the application form for the visa. These forms are available at the Saudi Embassy. You are also required to get a visa request number. The visa request number is provided by Enjaz, which is an IT based company handles the visa related issues and provides the applicants with an E number and this E number must be included in the form when applying for the business application for Saudi Arabia.

During the documentation process you will be asked to submit the letter from your employer that states your position in the company. The letter must also mention the purpose and duration of your stay in the country and it must be certified by the chamber of commerce of your resident country. The visa fee is required to be paid through Enjaz or any other visa office registered through Enjaz. While applying for a business visa for Saudi Arabia, it is advised to you to seek guidance from a reputed consultant who will make sure that you have greater chances of getting the visa.

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Commercial Visit Visa to Saudi Arabia – the do's and don'ts

Saudi Arabia is a country which has shown immense growth in the past few years. The country is one of the fastest growing economies in the world with a healthy GDP growth rate of 6%. The government of the country has also taken necessary steps to promote industrial growth of the country. The infrastructure of the country is also brilliant for business purposes. The country welcomes businesses from all over the world to perform business with the native companies and collaborate with them.

If you are one of those who are supposed to visit Saudi Arabia for business purposes, then you require a commercial visa that allows you to perform business in the country under the name of the foreign company for which you are currently working. In order to acquire a commercial visa for Saudi Arabia you need to have a valid passport and two colored passport size photographs facing the camera with white background. You also need to fill the application form completely and acquire the E number from Enjaz. It is an IT company that manages the visa applications for the Saudi Arabia. When you submit your request for the commercial visa, Enjaz will provide you with an E Number, you are required to mention this E number in your application form. You must submit your visa fees at the Enjaz or any other visa office registered with Enjaz. You can get the application form for the commercial visa for Saudi Arabia from your nearest Saudi Embassy.

What to do to obtain a commercial visa?

Obtaining a commercial visa for Saudi Arabia can be a very daunting task as the government of the country has set strict laws. You need to be fully prepared with the documents when you apply for a commercial visa. You are also supposed to produce a letter from your company provide information about your position in the company, purpose and duration of the visit. In order to get the commercial visa for successfully, it is advised to you to avail the services offered by a reputed immigration agent who know everything about the process. Usually such visas allow you to stay in the country for a few days or weeks and not more.

What not to do with your commercial visa?

Most of the times people confuse work or employment visa with the commercial visa. It is very important for you to understand that both are different so that you are not caught up in any trouble. Work visa allows you to work for any company in Saudi Arabia, while the commercial visa is solely for business purposes with a company in Saudi Arabia and you are supposed to leave the country once your business is done. It allows your company trade with the companies in Saudi Arabia. While staying in the country you are supposed to live according to the laws enforced by the government. You are not allowed to practice any other religion in public other than Islam because it is considered to be as an act to convert others. Do not involve any illegal activities in the country or your stay will be terminated.

Immigration Advisory Services in Saudi Arabia

Saudi Arabia is among the fastest growing nations in the world. In the recent past few years, the country has shown tremendous growth rate. There is an immense growth in the economy of the country mainly because of oil exports. People from all around the globe immigrate to this promising country in order to change their future because it comes with a number of business opportunities. This is why major corporate immigration services in Saudi Arabia stress on following immigration advisory for Saudi Arabia as it is an Islamic country which strictly follows Islamic laws. When you migrate to any country, you are expected to respect the laws, religions, customs and local traditions of that country. It is also very important that you do not offend any rules made by the government of the country.

Laws you need to follow in Saudi Arabia
Immigration simply refers to moving to a country which is not one’s own. When people think about immigrating to Saudi Arabia the first question that hits their mind is who can help them to make it possible and easy. Immigration advisory services can help you in making this complicated task easy. The agent will not only help you in managing the tedious documentation work of immigration, but will also provide you with valuable information so that you are able to cope up with the conditions in the country.
The laws in the country are strictly enforced and if you are new to the country, it will become very hard for you to understand the new laws and rules enforced by the government. An immigration agent will make sure that you are well aware about all the laws of the country so that you are able to survive there comfortably.
Some of the important laws that you must know before immigrating to Saudi Arabia are:

• Practice of any other religion than Islam in public is prohibited, it is considered to be an act to convert others.
• The private practice of other religion is accepted in the country.
• Islamic way of behavior and dress must be followed.
• Women are expected to conservative full length clothes and men are not allowed to wear shorts.
• It is illegal for a woman to drive.

Apart from these the government of the country has enforced many other laws that you must know. Immigration advisory services are aimed to provide insight about the rules of the country and make sure that you are able to immigrate to the country with utmost ease. By utilizing the services of the immigration advisory agent you will be able to complete the documentation process with ease. The agent will inform you what to do and what not to do. The agent will save your precious time by completing all the formalities required to be done during the entire documentation process and will only bother you when needed. This will not only save your time but will also keep you away from the stress. The agent will also help you setting up your business in the country by informing you about all the laws that are needed to be followed and the licenses you need to successfully run your business.

Want to know more about the best immigration advisory services in Saudi Arabia

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Business Opportunities in Saudi Arabia

There are immense business opportunities in Saudi Arabia and there are several reasons why it is so. If we delve into history, we will see that despite the turmoil in several middle east countries, Saudi Arabia remains stable. The reason behind it is that it is one of the most dominant oil producer and exporter in the world. Also, Saudi Arabia has collaborated with Britain to usher in a business friendly atmosphere in the country. The investors are also eyeing Saudi Arabia as one of the lucrative place to invest.

Reasons why Saudi Arabia is good for business

● It is one among the 25 largest economies, obviously because of its oil exports. It is also the largest economy in the Middle East.
● Saudi Arabia, judging by its per capital income is also one of the fastest growing countries of the world.
● The growth is due to the low cost of the energy in the operations if the business. Subsidies and incentives on the industrial lands make things even better for the business.
● Due to great transport infrastructure like National rail system and road transport, it is convenient to transport the goods which helps in the businesses in a big way.

The opportunities that await you in Saudi Arabia

Saudi Arabia is a fast developing economy as it shows the GDP growth of 4%. As the economy is booming at such a rate, several opportunities are being created for exporters, producers and investors. Saudi Arabia in a bid to diversify the economy and reduce its reliance on oil and petroleum is gearing up for making the atmosphere congenial for the establishment of companies.

● Information technology: IT industry is a fast emerging sector in Saudi Arabia, which is also likely to generate employment.
● Real estate: As the economy is growing, so is the infrastructure. The construction business is not going to see a downward trend in near future.
● Oil, gas and petrochemicals: These are the pet business in Saudi Arabia, which always show an upward trend. Although Saudi Arabia wishes to diversify the economy, oil and gas are still the most lucrative business in Saudi Arabia.
● Power including nuclear and renewable energy: Nuclear power and other sources of renewable energy production is also a great investment for the business
● Water and wastewater: Water is indeed a problem in Saudi Arabia and the waste water managements are implemented to make sure that there is no water scarcity. Investment in waste water management services is a lucrative and long term business proposition.
● Defense and security: Saudi Arabia spends a lot on defense and security and therefore, they offer good and profitable business prospects.
● Healthcare and Life Sciences: Saudi Arabia lags in healthcare services and therefore investment is always welcome in such domain.

All these sectors have immense possibilities as they are all booming sectors in Saudi Arabia and many investors are ready to make huge investments in these sectors. The government also in a bid to diversify the economy is offering incentives and subsidies to the investors so as to help them establish companies and businesses in Saudi Arabia and encash the immense opportunities.

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