Saudi Arabia's Vision 2030 is a strategic framework for the kingdom as it shifts away from an oil-dependent economy and looks to a more sustainable, non-oil future. The plan is based on three core pillars: a vibrant society, a thriving economy, and an ambitious nation. The country also plans to leverage its location and establish itself as a hub that connects Africa, Asia, and Europe.
The plan to transform Saudi Arabia covers a wide variety of sectors and industries. However, one of its core aims is to accelerate the energy transition and achieve sustainability goals such as reaching Net-Zero by 2060. To do this, and to increase the role of non-oil businesses, will require companies and individuals to adapt and change how they operate.
A more sustainable future
The first Saudi Green Initiative Forum took place on the 23rd of October 2021. At the event, Crown Prince Mohammed bin Salman pledged the kingdom would plant 450 million trees and rehabilitate large sections of land. This alone would remove 270 million tons of carbon emissions each year.
There are also plans to turn Riyadh and other major cities into more sustainable places to live. The ultimate aim of achieving net-zero will be accomplished through an approach the country describes as a carbon circular economy – "reduce, reuse, recycle and remove".
Several other steps and initiatives are being enacted, such as joining the UNFCCC Sports for Climate Action and the Global Methane Pledge and the launch of solar power plants and wind farms. There will also be a shift toward greener cities and an increase in parks and trees.
However, switching to a non-oil economy and embracing more sustainable lifestyles will have the largest effect on people in the kingdom. The Saudi non-oil sector has recovered from the impact of the pandemic and is now growing at its most robust pace in four and a half years.
This increase, combined with a shift in how businesses operate, will help the country stay on track to hit the targets set out in Vision 2030.
A great example of how this works in practice and how people and companies can adapt is Budget Saudi. The business was established in Saudi Arabia in 1978, operates in 25 cities across the country, and is in a prime position to understand the effects of the changes.
Fawaz Abdullah Danish, the President and Group CEO of Budget Saudi, says, "The aims of Vision 2030 will only be achieved if everyone embraces its ideals and adapts behaviors and processes. Obviously, the transport sector will be a significant part of this.
"Looking at the broader picture, there are a lot of new or ongoing initiatives that will help create more sustainable lifestyles and infrastructure," Danish says.
"For example, on a smaller scale, the King Abdullah University of Science and Technology (KAUST) has launched the Green Roads initiative. This project collects discarded plastic and has developed a process for turning it into sustainable bitumen. At the other end of the spectrum are the plans for the vast city of NEOM, which will be powered entirely by renewable energy.
"However, it will be smaller changes that affect the average Saudi citizen. Adapting to the government's greener initiatives will require changes at all levels. Looking at it from the perspective of Budget Saudi, a company formed 44 years ago to meet the transport needs of people in the late 70s, we have had to adjust many times in over four decades to manage the changes and overcome the challenges," Danish explains.
"Vision 2030 will bring further evolution to all business sectors to achieve targets.Aligning with it, our focus has always been on providing the latest in technology and quality while improving sustainability. Fortunately, technology has improved vehicle efficiency, as we take slow but steady strides towards a greener fleet. This trend has also aligned with what our customers and partners want.
"We have already seen increased demand from our corporate clients, and looking to the immediate future, that looks likely to continue as more organizations seek to decrease carbon footprints. This makes it preferable to hire or rent cars instead of owning them. We also offer affordable options for both individual and corporate rentals, which have been incredibly popular.
"We’ve always invested in technology and innovation, and it's an approach that has stood us in good stead for decades. For example, we had been one of the pioneers in our industry by investing in fully integrated ERP systems and fleet management solutions for a 360-degree view of our business, benefitting both our customers and stakeholders," Danish says.
Budget Saudi is a great example of how a business can help the non-oil economy while also meeting customers' demands and making a profit. By embracing the latest developments, the company has continued to grow and succeed for almost half a century. In 2021, the business increased its net profits, after Zakat and tax, by nearly 9%.
Achieving the aims of Saudi Arabia's Vision 2030 will require many changes across all sectors of society. However, as they are in line with what most of the populace want – to decrease carbon emissions and live a more sustainably – changing processes need not be onerous. Businesses can adapt to consumer and government demands and still be successful.
