Saudi Arabia plans 450,000 new jobs by 2020 as part of major economic plan approved by Cabinet

  JEDDAH - Saudia Arabia has approved an economic plan that aims to wean its economy off oil dependence and generate 450,000 jobs by 2020. New jobs would be generated for the public sector under the National Transformation Plan (NTP), which was endorsed by the Cabinet on Monday. The plan also seeks to diversify the country's sources of income and cut public spending by 40 percent in the next five years. The NTP will be implemented through 543 initiatives across 24 government bodies at a cost of 270 billion riyals (Dh264.2 billion) over the next five years, Minister of State Mohammad Al Shaikh told the press conference in the Red Sea city of Jeddah. “This is Phase One of addressing the challenges,” he said, adding there will be “no substantial fiscal impact” on the state budget, partly because some savings have already been made. Minister of Energy, Industry and Mineral Resources, Khaled Al Falih, said that a number of industrial cities are also planned and slated to generate 150,000 jobs. Key aspects of National Transformation Plan Core goals - Create more than 450,000 jobs outside the government sector by 2020 - Have the private sector fund 40 percent of projects during the period, reducing financial pressure on the state - Have more than 270 billion dirhams ($72 billion) of goods and services produced locally instead of abroad, reducing imports and creating job opportunities Justice Ministry - Slash average resolution time for commercial cases to 395 days from 575 days; improve enforcement of contracts Finance Ministry - Prepare and implement income tax on residents; prepare and implement unified income tax (no details given) - Apply fees on registration of real estate and on profits from real estate - Raise non-oil state revenues to 530 billion riyals in 2020 from 163.5 billion riyals in 2015 - Cut public salaries and wages as a proportion of the state budget to 40 percent from 45 percent - Balance budget by 2020; government debt would rise to 30 percent of gross domestic product from 7.7 percent - Raise Saudi Arabia's credit rating to Aa2 from A1 - Increase state assets to 5 trillion riyals in 2020 from 3 trillion riyals Economy Ministry  - Reduce percentage of delayed state projects to 40 percent from 70 percent - Cut electricity and water subsidies by 200 billion riyals; reduce non-oil subsidies by 20 percent Energy, Industry and Mineral Resources Ministry - Boost annual non-oil commodity exports to 330 billion riyals from 185 billion riyals - Lift percentage of power plant electricity generation through "strategic partners" to 100 percent from 27 percent - Boost dry gas production capacity to 17.8 billion standard cubic feet per day from 12 billion  Health Ministry - Spend 4.7 billion riyals to reform and restructure primary health care Communications Ministry  - Privatise the Saudi Postal Corporation Ministy of Labour and Social Development  - Increase number of housing units provided to very needy families to 101,700 from 10,400