The recent elevation of Crown Prince Mohammed bin Salman to a prominent position in the Kingdom’s leadership has inspired confidence among the business sector worldwide.
With a seven percent jump in the Saudi stock market coinciding with the nomination, investors have pointed to other promising indicators that the Saudi economy and political sphere are on the rise. Following a decision by MSCI to announce that Saudi Arabia is under consideration for emerging market status, analysts observed that the Kingdom’s pace of reforms would be a boon for economic growth across the nation.
In particular, companies tied to the ambitious Saudi Vision 2030 reform plan are currently enjoying the largest performance boost. Shares in National Commercial Bank, which will manage a major part of financial transactions linked to the reform plan, experienced a 15 percent jump. Mining company Ma’aden surged 20 percent, and Emaar, a builder overseeing the construction of an industrial export zone in Saudi Arabia, experienced a 16 percent gain.
The Vision 2030 plan emphasizes economic diversification as the core of a sweeping strategy to reduce Saudi Arabia’s dependence on oil and increase the pace of social, political, and economic development.
To international observers closely watching the state of political affairs in Saudi Arabia, the transition of Prince Mohammed bin Salman from Deputy Crown Prince and ascension to the role of Crown Prince evidenced the Kingdom’s record of political stability.
Mohammed Alagil, Chairan of Jarir Marketing, a leading retail chain in Saudi Arabia, applauded the pace of change.
“The political transition was very smooth-we expect the reforms to continue,” he noted.
Other business leaders are cheering the Crown Prince’s management of key economic reforms, as the plan sets out a $200 billion privatization program with state investment that will revitalize key industries and make way for growth in new ones, such as entertainment and tourism.
Reforms in these sectors are closely linked to increased consumer spending and a rise in the participation of women in the country’s workforce, a move expected to stimulate family incomes and foster the development of small businesses. With over 50 percent of Saudi university graduates being female, the country’s leadership will continue to develop their talents, invest in their productive capabilities, and enable them to strengthen their future and contribute to the development of our society and economy.
The reform-minded Crown Prince Mohammed bin Salman is now poised to implement some of the most transformative initiatives that will benefit citizens and residents of Saudi Arabia.
Read more here at Reuters.