It is going to be an uphill task. For the entire process involves steering it away from the dependence on oil that has been part and parcel of its financial landscape. Reinventing the economy includes the task of generating jobs for the youth two thirds of whom are under 35. Joblessness reached 15.4 per cent in the second half of 2020.

The unemployment rate has declined but the concern persists. Saudis are taking low laid jobs which were once taken by the migrants but the higher end of the market still lacks opportunities for educated citizens.

Its royal family and it's fabulous landscape apart, what other unique selling point does Saudi Arabia posses? Attracting foreign firms and investors is of paramount importance in this regard. But reduction of subsidies, increased taxes and riding labour costs have eroded some of Saudi Arabia’s traditional advantages for foreign firms. In fact, Foreign Direct Investment (FDI) has been sluggish.

Detention of businessmen and some royals in corruption cases in 2017 has sent shock waves through the business community. Hefty bills served on tax issues to companies like Uber add to uncertainty.

The recent directive to multinationals to relocate their regional headquarters to the kingdom by 2024' is being considered by some as a corrective move. It has prompted firms like Unilever and Siemens to open offices in Riyadh.

Tourism is being considered to be the linchpin of this transformation. The policy makers hope it will become the source of new jobs and a major contributor to the GDP. The challenge lies in convincing foreign tourists in choosing Saudi Arabia over other global destinations. Abha, a city in the southwestern part of the kingdom is earmarked for a great turnover. Billions have been allocated to build hotels and tourist attractions aimed to draw 2 billion tourists by 2030. Tourist visas have been started to be offered only since 2019.

The potential is vast. The competition is fierce. Striking a balance between reforms and foreign investors is the imperative for the Saudi policy makers.. It is the only prescription to develop a competitive edge to the economy of this desert kingdom.

But the fact remains that ambitious plans to transform the economy is progressing at a slower pace than originally thought of. Some critics feel that ambitious targets are being set without adequate feedbacks. The path of diversification of the Saudi economy is intricate. It has to be journeyed carefully, point out many experts. (IPA Service)