Over the past ten years, so many sectors of the Saudi Arabia economy have grown significantly. The next 10 years for Saudi firms and businesses abroad appear to be even more optimistic and exciting, based on the Kingdom’s Vision 2030.
With the right guidance and identification of your place in the market, there is a huge amount of opportunity available to you and your business to capitalize on the vision that Saudi are looking to achieve over the next 7 years.
Here, I take a look at what Vision 2030 means for the country, and your business.
Vision 2030 is Saudi Arabia’s vision for the country’s future, intending to make the nation a global leader in investment and a crossroads between Europe, Asia, and Africa.
Saudis are the most present and active in the region online, with 25 million of those (83% of internet users) being active social media users.
This clearly demonstrates that Saudi Arabians have a huge desire for digital consumption, which is only expected to increase, and provides an insight into the role that e-commerce could well play in the future of the country’s economy. Vision 2030, directly addresses this, with clear targets about how they wish to grow the industry.
Assisting Small and Medium-Sized Enterprises (SMEs), Saudi Arabia believes that one of the key factors in a flourishing economy is supporting small enterprises. SMEs are already making use of a variety of marketing options offered by social media and other digital channels.
The government promises to assist in marketing, exporting firms’ goods and services, and expanding access to these channels.
In addition to helping small company owners, the Kingdom wants to work with international stakeholders and use e-commerce to open up new business opportunities, offer specialized training programs, draw venture capital funds, and inspire entrepreneurs.
The most crucial plan outlined in Vision 2030 is the one to wean the country off its reliance on oil by investing in infrastructure that will facilitate the diversification of the economy into manufacturing, technology, and mining.
KSA has established new Special Integrated Logistics Zones (“ILBZ”) in an effort to draw global investment and strengthen the country’s position as a regional hub. According to the rules governing ILBZ, organizations created there and engaged in authorized activities will have a fifty-year exemption from KSA corporate income tax. The proposal will not treat non-residents conducting business inside the Zone as Permanent Establishments in addition to the income tax exemption. Additionally, commodities situated inside ILBZ will not be subject to VAT or customs taxes (GACA).
The private sector is in the process of developing and growing the healthcare and educational sectors. Additionally, all sectors’ development and joint operations are geared toward enhancing and luring foreign travelers and investors interested in entering the booming and growing KSA market.
In order to help business leaders and investors traverse this journey and realize their growth aspirations, our team has a thorough understanding of the procedures required to establish a presence in the KSA.
For a tailored conversation about how Vision 2030 can work in favour of your business, connect with us to begin.
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