A LOOK AT SAUDI VISION OF 2030 FROM A CORPORATE GOVERNANCE PERSPECTIVEJournal: International Journal of Management (IJM) (Vol.9, No. 5)
Publication Date: 2018-12-27
Authors : FAISAL BIN HAMMAD ALFORDY;
Page : 31-43
Keywords : customer satisfaction; tangible; brand image; beauty clinic; Pekanbaru.;
This paper reviews the relationships between the crackdown system of Corruption, corporate governance (CG) and economic development in Saudi Arabia. The drive behind the Saudi transformational-economic plan is due to a variety of factors such as the drop in the crude oil prices in 2015-2016, OPEC's member's disagreement on reducing productions, the discovery of shale oil in North America…etc. In spite of the new changes on Saudi Arabia main oil- revenue generating mechanism, McKinsey's report of 2015 is suggesting that their proposed “productivity-led transformation model of the Saudi economy” is capable of 1) diversifying the Saudi economy 2) creating new productivity and growth venues 3) doubling Saudi GDP, 4) inventing as many as six million new Saudi jobs by 2030. Moreover, such undertaking is estimated by McKinsey to cost $4 trillion in investments. In addition, McKinsey's report allegedly highlights eight existing sectors namely: mining & metals, petrochemicals, manufacturing, retail and wholesale trade, tourism and hospitality, health care, finance, and construction and Planning are capable of contributing more than 60 percent of the overall growth needed to double Saudi GDP by 2030. Moreover, the McKinsey report signifies the societal responsibility and accountability to accelerate and reach the desired goals of their “comprehensive model that integrates the Kingdom's economic, labor market, and public finance perspectives” via a collective effort. Not only that but the report also signifies the roles Saudi private companies and international companies can play in transforming the Saudi economy and “accelerate the Kingdom's modernization”. In particular, the special corporate governance issues of banks, family-owned firms, and state-owned firms are not well understood; neither are the nature and determinants of public and private enforcement. The study aims as well to review the most important criteria and different comprehensive principles of governance in light of the institutional framework that organizes its work nature & Socio-economical, institutional, and privatization factors which might influence the implementation of Saudi vision of 2030. Consequently, this paper presented descriptive analysis on the basis of secondary sources such as from Saudi Central Department of Statistics and Information & Saudi Ministry of Economy and concluded by identifying major policy recommendations and research issues that require further study.
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