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and, 4) develop tourism and entertainment sector. To do so, the ministry mainly targets to decrease the subsidy for water and electricity by SAR200bn by 2020 and to expand the private sector contribution to GDP from 40.5%.

• The Ministry of Commerce and Investment is looking to 1) reinforce the protection of the Saudi consumers; and, 2) develop SMEs by incentivizing the culture of entrepreneurship and supporting productive families. The ministry targets by 2020 to 1) more than double the number of established entities from 50k to 104k; and, 2) increase the contribution of SME to non-oil GDP from 33% to 35%.

• The Ministry of Environment, Water and Agriculture is looking to 1) optimize the use of renewable water resources for agricultural purposes; and, 2) support national companies. The ministry targets by 2020 1) to consume more than twice less water in the agricultural sector, which should be reflected in a lower percentage of water used in the agricultural sector relative to the total available renewable water resources (191% vs 416% today); and, 2) to reinforce the Saudi independence to the broiler production by increasing the percentage of self-sufficiency in broiler production to 60% from 42%.

• The Ministry of Haj and Umrah is looking to provide the opportunity for the largest number of Muslims possible to perform Haj and Umrah. The Ministry targets by 2020 the number of Haj pilgrims to increase from 1.5mn to 2.5mn and the number of Umrah Pilgrims from abroad to increase from 6mn to 15mn.

• The Ministry of Labor and Social Development is looking to 1) improve education and enable more Saudi nationals to enter the job market; and, 2) to increase the participation of women in the workforce. The ministry targets by 2020 to 1) create 1.2mn jobs in the private sector (men and women); 2) reduce the unemployment rate to 9% from 11.6%; 3) reduce the cost of employment of Saudis compared to expatriates to 280% from 400% today, which implies a higher cost of expatriates; and, 3) to increase the proportion of female force to 28% vs 23% today.

Table 19: National Transformation Plan objectives and Key Performance Indicators (KPIs) affecting the consumer sector
Strategic objective Key Performance Indicators (KPIs) Unit Baseline 2020 target Regional b'mark Int'l b'mark
Ministry of Economy & Planning
Increase efficiency of government subsidy programs Value of water and electricity subsidy decrease SARbn 0 200 N/A N/A
Expand privatization of governmental services Private sector contribution to GDP % 40.5 N/A 20/27 36.4
Ministry of Commerce and Investment
Boost entrepreneurship Number of established entities (LLC) # 50000 104000 N/A 347015
Boost SMEs Contribution of SME to non-oil GDP % 33 35 60 N/A
Ministry of Environment, Water and Agriculture
Optimize the use of renewable water resources for agricultural purposes Water used in the agricultural sector relative to total renewable water resources % 416 191 42.76 19.1
Maintain security of vital resources of the country % of self-sufficiency in broiler production % 42 60 80 140
Ministry of Haj and Umrah
Accommodate larger number of Muslims to perform Haj Number of formal pilgrims (domestic and foreign) mn 1.5 2.5 N/A N/A
Accommodate more Muslims to perform Umrah Number of Umrah Pilgrims from abroad mn 6 15 N/A N/A
Ministry of Labor and Social Development
Provide suitable jobs for citizens Number of suitable private sector job opportunities for Saudis 000 0 1200 N/A N/A
Provide suitable jobs for citizens Saudi unemployment rate % 11.6 9 N/A 5.8
Provide suitable jobs Cost of employment of Saudis vs expatriates % 400 280 N/A N/A
Empower women Proportion of female labor force % 23 28 N/A N/A
Source: Saudi National Transformation Plan

Merrill Lynch GEMs Paper #26 | 30 June 2016 59
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