HOUSE_OVERSIGHT_016115.jpg

Exhibit 1: Saudi Vision 2030 Governance Model

[Diagram: Level 1 Defining directions and making decisions -> Council of Ministers -> Council of Economic and Development Affairs (CEDA)]
[Diagram: Level 2 Developing strategies -> Strategy Committee -> Strategic Management Office -> Execution Bodies]
[Diagram: Support Units -> Finance Committee -> CEDA's Project Management Office -> Ministry of Economy and Planning -> Delivery Unit -> Communication Team at CEDA -> "Adaa" National Center for Performance Management]
[Diagram: Level 3 Implementing -> Programs: Aramco Strategic Transformation Program, Public Investment Fund (PIF) Restructuring Program, "Daem" Program, National Transformation Program, Private Sector Growth Stimulation Plan, Regional Development Plan, Other Plans]

Selection of programs adopted in Vision 2030
Additional programs under consideration

Source: Saudi Vision 2030

A web of Strategic Programs
Saudi Vision 2030 incorporates a number of Executive Programs and initiatives, with implementation carried out by several government entities. The Vision continues to centralize decision-making into CEDA, chaired by Deputy Crown Prince Mohammed bin Salman, and reporting to the Council of Ministers. The Ministry of Economy and Planning also retains an important role, with lower emphasis being put on the Ministry of Finance. The Project Management Program also suggests emphasis on ongoing review of capital expenditures, whereby existing review served to examine their approval process, and control their level. From a macro perspective, the three most important programs for now are: a) the re-shaping of the Public Investment Fund (PIF) into a US$2trn Sovereign Wealth Fund (SWF); b) the new corporate strategy for Saudi Aramco to transform it into an energy and industrial conglomerate; and, c) the National Transformation Plan (NTP) which encompasses medium-term growth boosting initiatives and fiscal consolidation measures (alongside the Fiscal Balance and Privatization Programs). We discuss these three elements in turn below.

Table 1: Strategic Programs introduced by the Saudi Vision 2030

Strategic Program | Comment
Government Restructuring Program | Supreme Councils have already been implemented, and the Council of Political and Security Affairs and the Council of Economic and Development Affairs (CEDA) have been established
Strategic Directions Program | Strategic directions determined by state agencies and approved by the government
Regulations Review Program | Several laws have been reviewed or enacted already such as the Company Law, the Non-Governmental Organizations Law, the White Land Law, and the General Authority for Endowments (Awqaf) Law
Performance Measurement Program | Center for Performance Management of Government Agencies has been established
Human Capital Program | Aims to measure, assess, analyze and support the efficiency of civil service
Program for Strengthening Public Sector Governance | Strategic Management Office reporting to CEDA as well as a Decision Support Center at the Royal Court are to be established
Strategic Partnerships Program | Aims for stronger ties with economic partners to enhance exports
"Daem" Program | Aims to enhance the quality of cultural activities and entertainment
Private Sector Growth Stimulation Program | Under consideration
Regional Development Program | Under consideration
Fiscal Balance Program | Likely target of achieving fiscal balance by 2020
Project Management Program | Expert Project Management Offices (PMOs) and a Central Delivery Unit have been established
Saudi Aramco Strategic Transformation Program | Aims to position Saudi Aramco as a leader in more than one sector
Public Investment Fund (PIF) Restructuring Program | Aims to transform the PIF into the largest Sovereign Wealth Fund (SWF) in the world
Privatization Program | Comprehensive privatization program; targets under study
National Transformation Plan Program | Interim Key Performance Indicators (KPI) targets to achieve by 2020
Source: Saudi Vision 2030, BofA Merrill Lynch Global Research

Merrill Lynch
GEMs Paper #26 | 30 June 2016
5
HOUSE_OVERSIGHT_016115