Alwaght- After a difficult period marked by economic crisis and then coronavirus outbreak, Saudi Crown Prince Mohammed bin Salman launched a national strategy for transport and logistics, another part of a series of ambitious megaprojects he initiated in 2016 under Saudi Vision 2030. But what does he seek behind the new project and how accomplishable is it?
National strategy for transport and logistics: a new bin Salman dream
On Wednesday, Prince Mohammed unveiled the National Strategy for Transportation and Logistics Services, which aims to strengthen infrastructure, improve the kingdom’s global position and diversify its revenues. This strategy emphasizes on strengthening the human and technical capabilities of Saudi Arabia's transportation and logistics sectors so that the kingdom can boost its relationship with the global economy, given its geographical location, where three continents meet.
According to the de facto ruler, the country is trying to "provide a commercial-competitive model" with the aim of increasing productivity in the field of logistics services using high quality service systems. Improving the oil-dependent monarchy's position in logistics is one of the main pillars of the country's 2030 Vision. To put it precisely, the main goal of the Saudi rulers is to make Saudi Arabia one of the global hubs of logistics services.
Since the multiplicity of international destinations is one of the basic components of logistics services, bin Salman intends, via the framework of the new strategy for transportation and logistics, to improve his country's ranking in air transportation to the fifth globally and increase the international flight destinations to 250. Launching a new airline is one of the measures he is planning for this aim. Once realized, this plan can double the country’s air transportation capacity.
Also, Saudi Arabia currently has a 5,330-kilometer rail network, of which the Mecca-Medina expressway is part. Known as "Haramain high-speed railway", it is the largest express transportation project in the region. However, Saudi Arabia wants to expand its rail network to 8,080 kilometers as part of its national transportation strategy. Bin Salman also plans to reduce fuel consumption by a total of 25 percent by strengthening and expanding public transportation services in various cities, with the aim of protecting the environment. To this end, the kingdom is set to use "high-tech and smart solutions. "The transportation and logistics sector currently accounts for around 6 percent of the Saudi GDP. The new plan targets 10 percent, its media outlets reported.
Bin Salman and a series of unfinished megaprojects
From the very beginning of his entry into the power structure in 2015, and especially after his appointment as Crown Prince of Saudi Arabia on June 21, 2017, Prince Mohammad has presented and designed ambitious and dreamy plans for this country. His megaprojects, however, have failed to see light of realization and are even considered failed. His main plan was the Vision 2030, unveiled on April 25, 2016. Under the document, he proposed ways to cut the budget deficit, including by state employees salary cuts, and also promised freedoms to women— who by that time had not have the right to drive— and broadening their social participation including in the job market from 22 to 30 percent.
But at a more important level, the plan for the development of religious and non-religious tourism should be taken into account. Accomplishing the "Red Sea project" that will contain 50 coral islands with luxurious hotels and resorts along 200 kilometers of coasts will increase tourism revenues. An airport construction plan was approved in 2019 with the opening scheduled for 2035.
After tourism, transit plans and presence in new markets are of importance to bin Salman. Neom City is an epitome of this ambition. In fact, Neom is an ambitious project that can raise Saudi Arabia as a pioneer in the development of future cities using new technology that has not been used in the construction of other cities. The Noum project, to be constructed by state funds, and public and private investments, will start from the Tiran and Sanafir islands in the Red Sea to Egypt. The project, as a distinct economic zone connecting three countries of Saudi Arabia, Egypt, and Jordan, will have its own laws, regulations and taxes. The $500 billion project will focus on investment in a set of sectors, including energy and water, transportation, principal technologies, food, advanced industries, media products, entertainment, technology sciences such as artificial intelligence, commerce, and electronics and public welfare. The futuristic city will not be only the central point of global trade but also locates in the center of the air routes of Asia, Europe, and Africa.
Bin Salman's ambitious plans to realize the Vision 2030 document have been hampered in funding and implementation as low oil prices and then Covid-19 pandemic left the economy suffering. But the main point is that these plans are so high-flying that lack a realistic basis for realization. It should be noted that Saudi Arabia does not have the territorial potentials to become a hub of regional equations in terms of geoeconomics and geopolitics.
The projects of bin Salman are more idealistic than plan-based and are aimed to fulfill the ideals of a political leader. Saudi Arabia is a largely single-product economy as it heavily relies on oil which are deeply effected by global prices. Lack of various industries makes it a consumption country with grounds for massive corruption. With this in mind, the new Prince Mohammed plan seems lacks the implementation potentials.
Political retouch using elegant economic reforms
In searching a reason for bin Salman’s resorting to the megaprojects, we run into his intention to divert the attention from the political situation in his country. Over the past few years in human rights, numerous reports have been published by human rights organizations on the situation of women, minorities and even political prisoners in Saudi Arabia, all of which indicate a gross violation of human rights in the country.
A glaring example of rights violations is the assassination of the outspoken Saudi critic and writer Jamal Khashoggi in October 2018 at his country's consulate in Istanbul. His killing was horrific as he was murdered and dismembered at the hands of a hit squad said to have been sent by Prince Mohammed. Reports also suggest that previous Crown Prince Mohammed bin Nayef, who was detained in March 2020 along with his uncle Ahmed bin Abdulaziz, was tortured, to an extent that he could not stand on his feet without help.
It seems that by resorting to the megaprojects, bin Salman tries to divert the attention from dictatorship, crackdown, and human rights violations in the country and also collect prestige, acceptance, and legitimacy to ascend the throne before his father King Salman dies.
