Privatisation and taxation top Saudi non-oil plans
The $100bn only represents 5% of the planned $2tr Saudi Wealth Fund the prince recently announced, according to an economist
Prince Mohammed Bin Salman's vision to achieve $100bn revenues from the non-oil economy within five years is possible with a combination of privatisation and taxation, Saudi daily Al Okaz reported.
Economist Mohammed Omran said the $100bn only represents 5% of the planned $2tr Saudi Wealth Fund the prince recently announced.
Omran called for the privatisation of eight sectors, including health, tourism, airports and services.
He said productivity in industrial sectors needs to fulfil 60% of domestic demand instead of the current 40%.
Economist Fadel Bou Aynayn added that increasing operating efficiencies at ports and airports will add to GDP efforts.
He said the government can increase revenues through better collection of government fees, including securing municipal taxes which currently stand at just 40%.
Bou Aynayn added that VAT is a strategy that Gulf countries have discussed and need to agree on to diversify revenue sources.
Additional non-oil revenues could come from imposing levies on foreigners working in Saudi who benefit from government services and subsidies the same as locals, Bou Aynan concluded.