Vision 2030 drives growth and opportunity in Saudi Arabia
Saudi Arabia’s Vision 2030 strategy is transforming its economic landscape, creating unprecedented demand for accounting and consulting services. With a sharp focus on diversification, foreign investment, and private sector growth, the Kingdom is actively reshaping its regulatory environment. For local firms, this represents both a wealth of opportunity and growing challenges, especially around pricing, talent retention, and regulatory compliance.
In the latest edition of the International Accounting bulletin, Partner Khaled El-Shenawy, from member firm Al-Hamli & Partners, joins the discussion, sharing his views on the local accounting industry with particular reference to Saudi Arabia’s Vision 2030 strategy.
FDI and private sector boom
Under Vision 2030, foreign direct investment (FDI) has surged, particularly in non-oil sectors like technology, healthcare, and tourism. This has spurred massive growth in the private sector, including a rise in the number of SMEs—from 1.3 million in 2023 to 1.6 million in 2024. Multinational companies are also flocking to the Kingdom, with 127 relocating regional headquarters in Q1 of 2024 alone. This momentum has driven up demand for tax, audit, and advisory services.
Talent strains and Saudization pressures
Recruitment and retention remain difficult in a competitive, fast-changing market. Khaled comments:
“Clients, especially SMEs, are often price-sensitive and seek cost-effective solutions. The industry faces challenges in recruiting and retaining skilled professionals, particularly those with expertise. The Saudization* (Nitaqat) program emphasises the hiring of local talent, which has created opportunities for Saudi nationals but also increased competition for qualified professionals and for retaining them.”
The government has set ambitious Saudization targets for the accounting profession, with a goal of 70% over the next five years. This adds both pressure and opportunity for local firms navigating a tight labour market.
*Saudization is a government policy in Saudi Arabia aimed at increasing the employment of Saudi nationals in the private sector. Officially known as the Nitaqat program, it requires businesses to hire a certain percentage of Saudi citizens, depending on the industry and size of the company.
Opportunities ahead, despite a cooling economy
While recent budget deficits and cuts from the Public Investment Fund may signal a slowing in government-driven growth, demand for services like tax compliance, digital transformation, and sustainability reporting continues to rise. Khaled notes, “Over the next 12 months, demand will keep growing for auditing and taxation services.” For agile, well-positioned firms, the next phase of Vision 2030 remains full of promise.
To read the full article in the April edition of the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
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