After a surge in prosperity over the past decade fueled by rising oil prices, Saudi Arabia’s economy is at an inflection point. We see a real opportunity for the country to inject new dynamism into its economy through a productivity- and investment-led transformation that could help ensure future growth, employment, and prosperity. In a new McKinsey Global Institute report, Saudi Arabia beyond oil: The investment and productivity transformation, we discuss how the country has significant opportunities to transform its economy to become more sustainable and less dependent on oil. Among our findings:
•The oil price boom from 2003 to 2013 fueled rising prosperity in Saudi Arabia, which became the world’s 19th-largest economy. GDP doubled, household income rose by 75 percent, and 1.7 million jobs were created, including jobs for a growing number of Saudi women. The government invested heavily in education, health, and infrastructure and built up reserves amounting to almost 100 percent of GDP in 2014.
•The country can no longer rely on oil revenue and public spending for growth, in the face of a changing global energy market and a demographic transition that will significantly increase the number of working-age Saudis by 2030. The current labor participation rate is 41 percent, and productivity growth of 0.8 percent annually from 2003 to 2013 trailed many emerging economies.
•Our model integrating Saudi Arabia’s economic, labor-market, and fiscal perspectives shows that even if the country responds to these challenging conditions with policy changes such as a budget freeze or immigration curbs, unemployment will rise rapidly, household income will fall, and the fiscal position of the national government will deteriorate sharply.
•However, a productivity-led economic transformation could enable Saudi Arabia to double its GDP again and create as many as six million new jobs by 2030 (exhibit). We estimate this would require about $4 trillion in investment. Eight sectors—mining and metals, petrochemicals, manufacturing, retail and wholesale trade, tourism and hospitality, healthcare, finance, and construction—have the potential to generate more than 60 percent of this growth opportunity.
To enable this transformation, Saudi Arabia will need to accelerate the shift from its current government-led economic model to a more market-based approach. In the labor market, greater workforce participation by Saudi men and women is essential to achieve higher household income. Faster productivity growth requires better business regulation and more openness to competition, trade, and investment. Improved efficiency of spending and new revenue sources, possibly including taxes and higher domestic energy prices, can help ensure fiscal sustainability.

All stakeholders, including the private sector, foreign investors, and households, will need to be involved. And the state will need to embrace a new delivery philosophy while businesses adapt to a more competitive environment and the individual Saudi citizen takes more personal accountability. The transition will be challenging, but the new era of economic growth and employment it could usher in would be more sustainable than the oil booms of the past.
http://www.mckinsey.com/insights/growth/moving_saudi_arabias_economy_beyond_oil

after decades...lazy Arabs

tartar9:
after decades...lazy Arabs

What do you mean by after decades? Were you the one that gave them the oil? At least even after depending on oil, they have something to show for it. What has Nigeria achieved? Look at how the otuoke drunkardd destroyed this nation even though oil sold for 120 dollars per barrel and depleted our foreign reserve from 66 billion dollars to 30- million dollars.

APCsupporter:


What do you mean by after decades? Were you the one that gave them the oil? At least even after depending on oil, they have something to show for it. What has Nigeria achieved? Look at how the otuoke drunkardd destroyed this nation even though oil sold for 120 dollars per barrel and depleted our foreign reserve from 66 billion dollars to 30- million dollars.

I never said Nigeria was better

Can our state governor say the same of themselves? What we have in Nigeria is sharing and random construction of schools and hospitals. No real strengthening of the institution that allows people express themselves economically. What is the fate of the common business man who is trying to spearhead production of tooth-pick locally? community will extort him, insecurity drives away expert who are suppose to come work on his machines, exportation protocols is stifling, and government structures like roads are down yet we like to praise governors who steal and mismanage funds then turn around to build schools with no teachers or do free cocoa yam meals. We are a joking country.

The world actually.

Story story..story
There was a country called Nigeria, in that country ehn... an individual could be 7Times richer than the entire country.

A civil servant that has worked for 10years with an estimated #1.5 milla annual income, would have houses and other landed properties in Abuja and in all the 36 state's capital.

A governor that served for eight years would only build one block of primary school classroom and people would still sing his praises.

Where an ex president allegedly a saint while.in office managed to educate all his children abroad.

Where public office holders would allegedly build ultra modern hospitals but choose to go abroad for a simple pregnancy test.

I can go on and on, but.....

Until Nigerian budget is built around a standing strategic plan, we may not really go beyond short term results depending on budget inplementation.

What is the National strtegic plan which each state follow (with exception of Lagos)? Where is vision Abacha's 2020;20?

tartar9:
after decades...lazy Arabs

9ija wey con be workaholic wia it take us reach? Bad belle

APCsupporter:


What do you mean by after decades? Were you the one that gave them the oil? At least even after depending on oil, they have something to show for it. What has Nigeria achieved? Look at how the otuoke drunkardd destroyed this nation even though oil sold for 120 dollars per barrel and depleted our foreign reserve from 66 billion dollars to 30- million dollars.

Goat u forgot that ur brothers IBB, OBJ ABACHA, BUHARI destroyed Nigeria before d noble n hardworking GEJ came on board.

APCsupporter:


What do you mean by after decades? Were you the one that gave them the oil? At least even after depending on oil, they have something to show for it. What has Nigeria achieved? Look at how the otuoke drunkardd destroyed this nation even though oil sold for 120 dollars per barrel and depleted our foreign reserve from 66 billion dollars to 30- million dollars.

Goat u forgot that ur brothers IBB, OBJ ABACHA, BUHARI destroyed Nigeria before d noble n hardworking GEJ came on board.

just look at our confused daura born president no direction. got over 2trillion from TSA but stil went and borrowed to finance the feeding of his family without paying worker.

We need to evolve now.

With alternative energy coming on board. Eg solar, wind biomass etc

Fracking.
Electric cars.

There will be a fall in oil revenues in the coming decades. The time for planning around other sources of revenue is NOW

fritiyo:


Goat u forgot that ur brothers IBB, OBJ ABACHA, BUHARI destroyed Nigeria before d noble n hardworking GEJ came on board.

The noble drunkard that signs contracts when he is high on crack? They are saints compared to the drunkard called gej

fritiyo:


Goat u forgot that ur brothers IBB, OBJ ABACHA, BUHARI destroyed Nigeria before d noble n hardworking GEJ came on board.

just look at our confused daura born president no direction. got over 2trillion from TSA but stil went and borrowed to finance the feeding of his family without paying worker.

Fool, can you tell me what gej did with the 30 billion dollars he withdrew from our reserves? Do you know that them money dasuki shared was actually borrowed? Gej is a real idiotic bastard son of a harlott b!tch

APCsupporter:


Fool, can you tell me what gej did with the 30 billion dollars he withdrew from our reserves? Do you know that them money dasuki shared was actually borrowed? Gej is a real idiotic bastard son of a harlott b!tch

e goat what did obj did with $16billion that was meant for power project. perhaps he use it to send ur illiterate father to school.

of cos u know ur bro obj is certified monkey n buhari is glorified tout.

APCsupporter:


The noble drunkard that signs contracts when he is high on crack? They are saints compared to the drunkard called gej

of cos, everybody is a saint including judas Iscariot. the sleeping president that denies evrything including his christmas message is confused tout.

fritiyo:


e goat what did obj did with $16billion that was meant for power project. perhaps he use it to send ur illiterate father to school.

of cos u know ur bro obj is certified monkey n buhari is glorified tout.

Objs action does not justify that of gej. It doesnt change the fact that gej is a real dump son of a bastard

APCsupporter:


Objs action does not justify that of gej. It doesnt change the fact that gej is a real dump son of a bastard

come u don chop this morning? cos me i wan chop oh.

fritiyo:


Goat u forgot that ur brothers IBB, OBJ ABACHA, BUHARI destroyed Nigeria before d noble n hardworking GEJ came on board.

just look at our confused daura born president no direction. got over 2trillion from TSA but stil went and borrowed to finance the feeding of his family without paying worker.

Modath
Omenka
Abduljabbar4

Come and see fool oo