Global Journal of Management and Business Research, G: Interdisciplinary, Volume 23 Issue 1

Economic Transformation in Achieving Sustainable Development before and after the Kingdom's Vision 2030 (A Case Review for Saudi Arabia) Hayam M. Jabali α , Areej Hamoud Alharbi σ & Preethi Rajan ρ Author α: Public Administration Lecturer, Management Department, Applied College, Jazan University, KSA. e-mail: hajabali@jazanu.edu.sa Author σ: International Business Administration Lecturer, Management Department, Applied College, Jazan University, KSA. e-mail: ahamoud2@jazanu.edu.sa Author ρ: Marketing Lecturer, Management Department, Applied College, Jazan University, KSA. e-mail: prajan@jazanu.edu.sa Abstract- Saudi Arabia has come a long way in developing its economy with Vision 2030 as its goal to achieve economic transformation. Prior to implementing Vision 2030, Saudi Arabia had facedmany issues which led to the imbalance of its economy. Instigating Vision 2030 led to a drasticchange in the tourism sector. Attracting international investments led to focusing on various sectors like renewable energy, entertainment and so on. Even though the tourism sector lackeddiversity initially, after the implementation of Vision 2030, non-related economic segments flourished. Keywords: sustainable development, vision 2030, tourism, economic development, investment. I. I ntroduction n contemporary times, sustainable development has emerged as a worldwide imperative as nations endeavor to achieve equilibrium between economic advancement, ecological preservation, and societal welfare. International organizations such as the UN have developed plans and goals to reach by 2030, propelling economic, climate, and societal transformation. These goals and frameworks have been the guiding factor for various plans implemented by governments such as Saudi Arabia. This Kingdom has positioned itself as a pioneer in economic transformation and sustainable development through its ambitious Vision 2030. This vision encompasses various components, such as economic diversification, privatization, global investment attraction, and the Public Investment Fund's (PIF) role expansion. However, the ultimate goal of this plan is to establish a prosperous and diversified economy, highlighting the plan’s orientation towards the region's economic transformation. Therefore, expounding on the theme of the Kingdom's economic transformation through analyzing its economy pre- and post- implementation of Vision 2030 will highlight its commitment to sustainable development and the issues it must address to achieve these outcomes. II. P re- I mplementation Before the execution of Vision 2030, Saudi Arabia's economy mainly depended on oil profits. This reliance made it susceptible to changes in the price of these commodities worldwide, leaving the Kingdom's government vulnerable to high expenditures (Moshashai etal., 2020). Increased spending by the government often leads to increased economic instability, budget deficits, and diminished reserves. In particular, this high expenditure increased the population’s reliance on a consistent provision of public employment opportunities andassociated income (Moshashai et al., 2020). This resulted in slow private sector business growth, limiting investments, economic growth, and diversify- cation of the nation. From a financial standpoint, the lump sum transfers and subsidies utilized as an approach by this government to refrain from altering the consistent provision of employment and income resultin deadweight expenditure due to the inefficient allocation of wealth (Moshashai et al., 2020). Therefore, before the implementation of Saudi's Vision 2030, it heavily relied on one sector of the economy, which led to various economic issues that necessitated more sustainable approaches. Additionally, Saudi's tourism sector was one of the primary focuses of this visionary plan. Before the implementation of this plan, tourism in the Kingdom was primarily centered on religious pilgrimages, with most visitors traveling to the country for religious reasons (Abuhjeeleh, 2019). This was propelled by the predominant Islamic culture in the nation that affected various aspects of society. However, other forms of tourism were limited due to the strict laws enacted in this country, discouraging other forms of tourism. Un- resolved human rights issues, such as systematic discrimination against women, mandatory dress codes for women, and a prohibition of alcohol, are some factors that discourage tourism in the region (Abuhjeeleh, 2019). To achieve the desired outcomes of this sustainable plan, the governmenthad to implement various regulatory changes that would lead to tourism being one of the primary contributors to the Kingdom's I 59 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( )G © 2023 Global Journals