Saudi Economic Development through Corporate Governance@ Vision 2030Author:S. Veeramani
Abstract:
The drive behind the Saudi transformational-economic plan is due to a variety of factors such as the drop in the crude oil prices in 2015-2016, OPEC’s member’s disagreement on reducing productions, the discovery of shale oil in North America…etc. In spite of the new changes on Saudi Arabia main oil- revenue generating mechanism, McKinsey’s report of 2015 is suggesting that their proposed “productivity-led transformation model of the Saudi economy” is capable of: 1) diversifying the Saudi economy, 2) creating new productivity and growth venues, 3) doubling Saudi GDP, 4) inventing as many as six million new Saudi jobs by 2030. Moreover, such undertaking is estimated by McKinsey to cost $4 trillion in investments. In addition, McKinsey’s report allegedly highlights eight existing sectors namely: mining & metals, petrochemicals, manufacturing, retail and wholesale trade, tourism and hospitality, health care, finance, and construction and Planning are capable of contributing more than 60 percent of the overall growth needed to double Saudi GDP by 2030. The study aims as well to review the most important criteria and different comprehensive principles of governance in light of the institutional framework that organizes its work nature & political, legal, institutional, privatization and cultural factors which might influence the implementation of Saudi vision of 2030. Consequently, This paper reviews the relationships between corporate governance (CG) and economic development in Saudi Arabia and presented descriptive analysis on the basis of secondary sources such as from Saudi Central Department of Statistics and Information & Saudi Ministry of Economy and concluded by identifying major policy recommendations and research issues that require further study.
Keywords:Key words: Corporate Governance, Cultural, Institutional, Legal, Privatization, Political factors and Saudi economy.
DOI:
International Journal of Trade & Commerce (Vol: 6 Issue:2)
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