Research, Innovation and Entrepreneurship in Saudi Arabia

Vision 2030

Muhammad Khurram Khan, Muhammad Babar Khan, Muhammad Khurram Khan, Muhammad Babar Khan

• Publisher: Routledge
• Year: 2020
• Print ISBN: 9781138488533
• eBook ISBN: 9781351040006
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

This book provides valuable insights into the Kingdom of Saudi Arabia (KSA) through a comprehensive examination of Vision 2030, an ambitious economic plan by the KSA to reinvent and diversify its economy from a heavy dependence on hydrocarbon to knowledge-based resources.

Research, Innovation and Entrepreneurship in Saudi Arabia: Vision 2030 discusses how this initiative will assist the government in achieving its envisioned goals by creating a culture of research, innovation and entrepreneurship. It studies the current state of the field as well as new policies and reforms in Saudi Arabia which encompass education systems, ICT infrastructure and a vibrant innovation landscape that includes academia, the public and private sectors and civil society. The authors present a number of real-life case studies as a model of inspiration for cross-sector development. The book provides a source of inspiration for other nations in studying the KSA's determined and ambitious plans as a country in a transitioning journey, from a natural resources-based economy towards a knowledge-based country with considerable diversification in all sectors.

This book is a useful reference for students, researchers and policy and decision-makers in understanding Saudi innovation and the economic diversification ecosystem.

1 Kingdom of Saudi Arabia

The land of opportunities

Muhammad Babar Khan, Irfan Hameed and Kamran Khan

Historical background

King Abdul-Aziz Al-Saud founded the Kingdom of Saudi Arabia (KSA), commonly known as Saudi Arabia, which is located in southwestern Asia. Saudi Arabia covers a significant fraction of the Arabian Peninsula, with an area of 2149.7 (in thousands) square kilometers [1]. The World Bank reported that the population of the Kingdom is 33.70 million in the year 2018. The growth rate of the population is 3.5%, the fastest growth rate in the world [2]. The population living in the Kingdom of Saudi Arabia is diverse; the majority (90%) are Arabs, and the remaining 10% are of Asian and African origin [3]. The kingdom of Saudi Arabia has 13 governing provinces, including over 5,000 villages and cities. The metropolitan cities include Jeddah, the central port on the Dammam and the Red Sea, and Riyadh, the capital city, which is located in the middle of the country and is the major city on the Arabian Gulf.

Population

The land area in Saudi Arabia totals 2,149,690 square kilometers or 829,999.94 square miles. In relation to the total population of the country, this is 15.61 individuals per square kilometer, or 6 people per square mile. Of Saudi Arabia’s population, 83.33% live in municipal areas, means that there are several sizeable cities in the Kingdom. The capital city of Saudi Arabia is Riyadh with over 7.5 million people and Jeddah is the second largest city, with 3,976,400 citizens. The holy city of Mecca and Medina have approximately the same population, between 1 and 1.6 million. Within different age groups, the 0–14 group makes up the median amount of population, with 32.4% of the total. The middle age group, 15–64, has the highest share in the total population, about 64.8%. The 65+ age group makes up under 2.8% of the total population. The male-to-female gender ratio at birth is 1.05. For the age group of under 15, this ratio is 1.05; for the 15–64 age group, it is 1.03 and for the age group of 65+, it is 1.03. The total population mean male-to-female ratio is 1.21 [4].

Geography

The Kingdom of Saudi Arabia covers around 80% of the Arabian Peninsula. The majority of the country’s borders with Oman, United Arab Emirates and the Republic of Yemen are disputed, which is why the actual size of the country remains unknown. Per the statistics of the Saudi government, it is estimated that the country’s area is 2,217,949 square kilometers. Some other sources differ between 2,149,690 and 2,240,000 square kilometers. It is also noted that less than 1% of the total area is ready for cultivation. Saudi Arabia is covered by seven countries and three different bodies of water. The western side of the Gulf of Aqaba and the Red Sea form a coastal border of almost 1800 km which drains towards south of Yemen and then follows the mountain ridges for approximately 320 km to near Narjan. The Saudi border is on the southeastern side of Narjan and is still undecided. The borders of Saudi Arabia became an issue in the early 1990s, when oil was discovered in the area of Saudi Arabia when Yemen, on behalf of foreign companies, explored oil for commercial use. Saudi Arabia is confined by Jordan, Iraq and Kuwait from the northern side. The boundary encompasses almost 1,400 kilometers, from Aqaba on the western side, and extends towards Ras al Khafi on the Persian Gulf. Jordan and Saudi Arabia agreed on terms in 1965 in which an exchange of small territories was agreed upon, in which Jordan was given extra land near Aqaba, which is a port. In 1922, Abd al Aziz ibn Abd ar Rahman Al Saud signed a pact called Moammara with British delegates representing Iraqi interests in which the boundary was defined between the future Saudi Arabia and Iraq. Per the regulations, the border in Abd al Aziz’s territories of Najd and the eastern side of the provinces and the British colony of Kuwait was first controlled by Al Uqair in 1922. To avoid territorial disagreements, another diamond-shaped zone of about 5,790 kilometers was created which is south of Kuwait. Furthermore, Saudi Arabia and Kuwait signed a pact in 1965 which divided lands geographically, with each country administering half the resources. Saudi’s oceanic entitlements constitute 12 nautical miles of its coast. There are also many islands and sea beds beyond the 12 nautical mile limit [5].

Culture

Saudi culture and religion are predominantly Islamic. Islam is followed by all Saudis, and they conduct their own political, legal, personal and economic lives per the principles of Islam. Saudi Arabia is the birthplace of Islam, so millions of Muslims visit Saudi Arabia every year. The majority of the population living in the Kingdom of Saudi Arabia is Sunni; however, there are significant numbers of Shia living on the eastern side of the coast and some other minority sects near the Yemen border. Muslims firmly believe in the second pillar of Islam, which is to pray five times a day, at dawn, noon, afternoon, evening and sunset. Since Friday is considered the holy day for Muslims, the culture is defined such that all businesses are shut down on Fridays, and the day is considered part of the weekend. Throughout the holy month of Ramadan, Muslims living in the Kingdom of Saudi Arabia are required to fast from dawn to dusk and are allowed to work for five to six hours per day. Per Saudi law and culture, non-Muslims are not allowed to drink, smoke and eat in the public during the month of Ramadan. However, non-Muslims are allowed to follow their religions outside the holy cities of the Muslims. The major celebrations that take place over all of Saudi Arabia that are specifically for Muslims are Eid-ul-Fitr after the holy month of Ramadan, which is on the first of Shawwal; Eid-ul-Adha, the day of animal sacrifice for Muslims, is at the end of Hajj and is a pilgrimage in honor of Prophet Ibrahim (A.S); and September 23 is considered Saudi National Day. Tribal and family culture are the basis of the social culture. As their family names suggest, different tribes of Saudis are conscious about their clan, heritage, extended family and nuclear family. Saudis are very responsible and cautious about their families. Their families are usually large, and there are joint family systems in extended families. Family members are close to each other, and Saudis are usually very hospitable when it comes to helping needy people or supporting anyone. Social divisions are only experienced between local and foreigners. Attitudes, beliefs and practices are commonly shared across economic divisions, which is considered the bridge which strengthens the relation between kinship and religion. Contemporary literature and classical Arabic poetry are always highly valued. Recitation of verses from the Holy Quran as well as poetry are commonly practiced at weddings and other major Saudi events. The novel has been popular among men and women because of influential writers from Egypt and the levant. Saudis are fond of painting, folks dancing and sculpture. Dancing with swords is a cultural representation of Saudis in their major events [6].

Climate

Saudi Arabia has a warm, dry desert climate with very high temperatures in most parts of the country. The southern part of the country has a reasonable temperature which can be less than 10 degrees Celsius in summers. During winter, the temperatures are moderate, but the nights are cold, the temperature sometimes dropping to the freezing point. Rainfall is most common on the Red Sea in March and April, and the rest of the country has low rainfall [7].

Education in Saudi Arabia

Saudi Arabia is spread out over an area of over 2 million square kilometers and has 13 administrative provinces [8]. Moreover, the population recorded in 2016 was approximately 32,430,000, with males and females making up 55.2% and 44.8%, respectively, and a large part of the population falls into the age bracket of 15–64 years [9]. Saudi Arabia follows a gender segregation policy throughout its public sector, which also includes universities; however, King Abdullah University of Science and Technology and the health segments are excluded from this policy [10].

Most of the higher education universities in the Kingdom of Saudi Arabia are public sector, which play a significant role in the development of the country [11]. Nonetheless, further research validates that although the country heavily relies on the revenue generated from oil, Saudi Arabia faces the same challenge that China has been facing which comes from economic diversity, and this challenge has made the quality of skills and knowledge a high priority [10]. Moreover, in view of the increasing population and the economy’s growing demand, King Abdullah’s scholarship program was developed in 2005 with a purpos...

Table of contents

• Cover
• Half Title
• Series
• Title
• Copyright
• Contents
• List of figures
• List of tables
• Biographies of editors
• List of contributors
• Preface
• 1 Kingdom of Saudi Arabia: the land of opportunities
• 2 Economic development vision of the Gulf Cooperation Council
• 3 Saudi entrepreneurship case studies and analysis
• 4 Knowledge-based economy in Saudi Arabia and Vision 2030: the journey so far
• 5 Research and development in Saudi Arabia
• 6 Economic transformation through incubation and entrepreneurship (in light of Vision 2030)
• 7 Vision 2030 and the National Transformation Program
• Conclusion
• Index