The massive $3.5 billion investment in mobile black cab hailing service Uber made by the Public Innovation Fund of Saudi Arabia sparked comments by analysts worldwide about the interest of the Kingdom for technology companies.
Beyond the different points of view on the deal, will this be an isolated case? Will we coverĀ deals like this (or even bigger) in the future? Yes we will! Why?
Actually, the investment by theĀ Public Innovation Fund seems to align with the recently launched growth plan of the Kingdon of Saudi Arabia.Ā Called “Vision 2030“, the new program expresses the Kingdom’s long-term goals and expectations to become a “a global investment powerhouse” in order to stimulate the economy and diversify revenues and leverage its strategic geographic position to becomeĀ a global hub connecting Asia, Europe and Africa.
Taking into account the digital andĀ tech sectors, the planĀ points out the importance of making investments in some stragric areas. Have a look at them.
Firstly, the countryĀ aims to expand the variety of digital services to reduce delays and cut bureaucracy, to facilitate the access to social media platforms in order to enable productive families to increase marketing opportunities. In addition, SMEs will be supported in their marketing and product and service exporting efforts by leveraging e-commerce and collaborating withĀ international stakeholders.
The Kingdom will alsoĀ increase the contribution of modern trade and e-commerce sector to 80% of the retail sector by 2020, goal toĀ be achieved by attracting both regional andĀ international retail investors and by easing restrictionsĀ on ownership and foreign investment.
The digital infrastructure, which is considered as a fundamental asset to attractĀ investors and enhance the competitiveness of theĀ economy, will be improved. To this end, theĀ KingdomĀ will partner with the private sector to develop theĀ telecommunications and information technologyĀ infrastructure, especially high-speed broadband,Ā expanding its coverage and capacity within and aroundĀ cities and improving its quality.
In the economic sector, the recently cretedĀ SME Authority plans to reviewĀ laws and regulations thoroughly, remove obstacles,Ā facilitate access to funding, and enable youth andĀ entrepreneurs to market their ideas and products. In addition,Ā new businessĀ incubators, specialized training institutions and ventureĀ capital funds will be established.
In education,Ā a particularĀ focus will be onĀ innovation in advanced technologies andĀ entrepreneurship.
In culture, an Islamic museum will be build,Ā equipped with theĀ latest methods in collection, preservation,Ā presentation and documentation. Using modern technology, visitors will take an immersive journey through the differentĀ ages of Islamic civilization, as well as its science,Ā scholars and culture.
FinSMEs
04/09/2016