Article Summary
The Saudi Vision 2030 takes up different perspectives and directions within the diverse spheres it influences. The study by Amran et al. (2020) reviews the current status and future projection of renewable and sustainable energy (RnSE) technologies in Saudi Arabia that align with the Saudi Vision 2030. Due to rising electricity consumption, Saudi Arabia invested large funds in RnSE projects in the country. There are different energy sources reviewed by the article, such as solar, wind, and geothermal. The main argument of the article is that Saudi Arabia aims to diminish the reliance on traditional energy sources by introducing clean and sustainable energy sources.
However, the underutilization of certain technologies in a region shows that the future energy landscape of Saudi Arabia can face certain threats (Amran et al., 2020). Furthermore, the evaluation emphasizes the necessity of investigating and evaluating offshore wind, biomass, and thermal energy resources, offering a chance for additional growth and application inside the nation. The article advocates for the establishment of a robust energy policy that will reduce costs, envision security, and ensure the efficiency of RnSE (Amran et al., 2020).
One of the recommendations given by the article is leveraging RnSE technologies into the growth strategy of the Saudi Vision 2030 objective. Most of the projects and the desire to provide 9.5 GW through RnSE are already included in Saudi Vision 2030 (Amran et al., 2). However, there is still a substantial need for research centers and efficiency reviews.
Foreign Investors’ Role in the Saudi Vision 2030
The relationship between this topic and foreign investors is strong. The RnSE sector is growing worldwide with the call for more sustainable energy consumption and production in the region. Thus, the sector can attract foreign investors due to the worldwide support of measures done by Saudi Arabia. At the same time, foreign investment should mostly work from the perspective of portfolio investment rather than foreign direct investment (Keown et al., 2020).
This is due to the fact that foreign direct investment through the control of international corporations does not align with Saudi Vision 2030 and overall economic policies in the region. Foreign investors would play a crucial role in realizing the 2030 plan by injecting capital, expertise, and technological advancements into the economy. The involvement can also imply the diversification of the economy and the development of key sectors such as education, infrastructure, and tourism.
Overall, it can be said that Saudi Arabia is implementing different methods to attract more investments. First of all, the government established a Public Investment Fund to attract foreign investment and relocate necessary resources (Grand & Wolf, 2020). Furthermore, there is a main emphasis on investment attraction into megaprojects initiated by the government, which mostly includes the tourism sector. NEOM, the Red Sea luxury tourism developments, and the Qiddiya Entertainment City are examples of the given foreign investment initiative (Grand & Wolf, 55). However, there are other sectors that Saudi Vision 2030 can focus on, such as the renewable resources energy sector.
References
Amran, Y. A., Amran, Y. M., Alyousef, R., & Alabduljabbar, H. (2020). Renewable and sustainable energy production in Saudi Arabia according to Saudi Vision 2030; Current status and future prospects. Journal of Cleaner Production, 247. Web.
Grand, S., & Wolff, K. (2020). Assessing Saudi Vision 2030: A 2020 review. Atlantic Council, 17, 1-80. Web.
Keown, A.J., Martin, D.J., Petty, J.W. (2020). Foundations of finance (10th ed.) Pearson.