The Saudi Arabian government’s ambitious “Vision 2030” economic diversification initiative presents Turkish businesses and entrepreneurs with a significant opportunity because its projects have the potential to provide new avenues for investment.
The Kingdom is gearing up to use the plan to socially, culturally, and economically reshape the nation and establish it as a regional hub.
The Saudi government unveiled the Vision 2030 initiative on April 25, 2016. The initiative includes megacity projects such as Neom, infrastructure development, initiatives stemming from international events such as the World Cup and the 2029 Asian Winter Games, which Saudi Arabia will host, and the construction of public services, health, and education facilities.
The USD 500 billion to USD 1 trillion economic development plan intends to transform the nation in numerous areas.
Since its inception in 2017, the National Centre for Privatisation (NCP) has worked to attract potential private sector participants from both domestic and foreign markets to the Kingdom in order to improve public services and infrastructure and promote sustainable growth.
To get a portion of these substantial investments, a delegation of Turkish business leaders travelled to Riyadh, the capital, recently.
Turkish businesses hope to establish contacts as partners in the region’s economic potential as part of their visit, working with the NCP.
Senior representatives from Saudi Arabia’s Ministries of Investment, Transportation, Health, Environment, Water, and Agriculture will engage with Turkish enterprises through the NCP.
Senior ministry representatives will inform Turkish businesses about the projects they plan to implement in these fields. Bilateral discussions and mutual assessments will also take place.
In terms of funding for the planned investments, Turkish businesses will also communicate with Saudi banks. The Saudi administration will also arrange bilateral meetings and idea-sharing sessions with multinational corporations from Canada, the United States, and the United Kingdom that have conducted business in Turkey to lay the groundwork for future collaborations.
Robust Alliances
Turkiye’s Investment Office advisor for Saudi Arabia, Cuneyt Sarıçimen, told Anadolu Agency (AA) that the country has about ten resident firms in Saudi Arabia and is strong in the construction sector.
He emphasised that Turkey has a significant presence in the Saudi Arabian defence sector, pointing out that the country already hosts the Turkish defence giant Aselsan, and that defence companies Roketsan and Baykar, as well as IT company CTech, continue to have projects in the country.
He claimed that by forming alliances with Saudi Arabian businesses, they support Turkish companies operating in the private sector and have invited sizable and nimble Turkish enterprises to maintain their robust alliances in Saudi Arabia.
Sarçimen stated that the company will be launching activities in Jeddah, and that Turkish pharmaceutical manufacturer Abdi Ibrahim formed a pharmaceutical cooperation with the nation a few months ago.
Construction And Automotive Industries
Sarıçimen added that Turkey may benefit from its experience in the Saudi Arabian automotive sector and that chances exist at different levels in other sectors.
By facilitating partnerships between Turkish companies and the Saudi government, he explained, Ankara hopes to expand its market share in Saudi Arabia. The Saudi government is actively promoting this goal and working to maintain competitive parity between domestic and foreign businesses.
He stressed that there is a “very huge cake” for investments in the nation and mentioned that, as part of “Vision 2030,” Saudi Arabia hopes to draw in about $3 trillion in capital.
He declared, “We see in every aspect that they prioritise, both in the state and the private sector, their desire to engage with Turkey.”
He underscored the potential of Turkish firms in mass housing, airport, hospital, and school construction projects, noting that they secured approximately USD 3 billion in contracts from Saudi Arabia in 2023, with projections of further growth.
Vision 2030
Some 13 regions in Saudi Arabia will see the implementation of several projects as part of the Vision 2030 plan.
The goal is to boost economic development and improve living standards in 12 Saudi Arabian cities by encouraging corporations and investors to start businesses and create jobs in a variety of industries.
Al-Jawf, a city in the north, has wind farms and solar panels as part of a strategy to switch to renewable energy sources by 2030, from a total of 50% now.
Nuclear sciences will be able to advance thanks to the Low Power Research Reactor Project, which will support Saudi Arabia’s growing nuclear energy sector and enable nuclear sciences to advance.
A significant advancement in the energy sector and a catalyst for the adoption of renewable energy technologies will come from the King Salman Energy Park in the east of the nation.
The world’s largest solar-powered desalination plant, the Al-Khafji Desalination Plant, finds creative and sustainable solutions to address the region’s water needs. The plant can generate up to 90,000 cubic metres of fresh water daily.
Aiming to draw in investors, the country intends to develop five special economic zones.
The initiative will boost industrial development and economic growth, which will create jobs and boost the nation’s competitiveness.
The goal of the Qiddiya City project is to make the area a major hub for sports, entertainment, and culture worldwide. International sports arenas, performance spaces for concerts, and academies for the arts and sports will all be there.
With an estimated $62 billion in development projects, the city of Diriyah, which is northwest of the capital Riyadh, will become a distinctive hub for living, working, tourism, and shopping.
Mohammed Bin Salman is a non-profit city unlike any other. The city, also known as “Misk City,” will have hotels, offices, and spaces for the arts, sports, and education in addition to residential neighbourhoods.
Art And Culture
The Riyadh Art initiative aims to improve urban life and stimulate the economy by converting Saudi Arabia’s capital into an open-air art gallery.
The New Murabba project, which spans 19 square kilometres (7.33 square miles), will see the construction of a new area within the city of Riyadh. An important cultural and tourism destination will be the city’s central architectural building, known as Mukaab.
Launched in 2019, the King Salman Park Project aims to construct the largest urban park globally, featuring gardens arranged in an Islamic manner, complete with a dedicated section for butterflies and birds.
By 2030, the Green Riyadh project hopes to make Riyadh a “green oasis” and one of the world’s top 100 most livable cities. There will be 7.5 million trees in the city.
Prioritising the interaction between humans and the environment is one way that the NEOM initiative will promote sustainable living.
The renewable energy-based smart city concept will guide the planning of “The Line,” a future city on a land area of about 30 square kilometres (11.5 square miles).
The same region’s Trojena Mountains will boost environmentally friendly climbing travel, while Sindalah Island, which is a gateway to the Red Sea, is envisioned as an opulent travel destination.
Advanced manufacturing facilities and an integrated logistics centre are features of Oxagon, a projected floating port city on the Red Sea coast.
Medina will become a contemporary cultural destination thanks to the municipal project known as Rua Al Madinah. By 2030, the proposal hopes to boost the city’s pilgrim capacity to 30 million.
The Masjid Quba project includes the construction of 57 historical sites, as well as the expansion of the current mosque.
Projects in the areas of archaeology, tourism, culture, education, and the arts will be part of the Al-Ula project, Saudi Arabia’s first UNESCO World Heritage Site, which aims to preserve this exceptional region’s exceptional natural and historical qualities while also making it more accessible to the outside world.
Living Sustainably
Beginning construction in 2017, the Rabigh Desalination Plant leads the effort to combat water scarcity while also increasing tap water use.
The nation’s first electric vehicle company, Ceer, is getting ready to launch a new sector of the economy that will draw both domestic and foreign investment, generate employment opportunities locally, and support Saudi Arabia’s economic expansion.
By 2030, 70% of the population should be homeowners thanks to the 2020 launch of the housing project ROSHN. We anticipate that the project will benefit the infrastructure and real estate industries.
The goal of the Jeddah Historic District project, a UNESCO World Heritage Site, is to restore Jeddah’s historic core and transform it into a hub for the arts and culture.
Designed to support the growth of Soudah, a highland area in Saudi Arabia’s Asir region, the initiative intends to integrate adventure and cultural tourism, protect the area’s distinctive cultural heritage, and boost the local economy.
The Soudah Hills project aims to preserve the area’s natural scenery and cultural legacy by incorporating traditional regional architectural forms.
By 2033, the project will have 1,336 residential units, 2,700 lodging options, and 80,000 square metres (861,112 square feet) of commercial space.