Analytical Hierarchy Process (AHP) in the Face of International Policy: of the Kingdom of Saudi Arabia (KSA) Vision 2030
The Vision 2030 plan by KSA in retrospect of the National Transformation Program 2020. Entreating the government policy decision setting far-reaching goals to transform the Kingdom highly dependence on the oil-based economy to diversified sustainable crossroads international investment (Alshuwaikhat & Mohammed, 2017). All countries of the Gulf Cooperation Council (GCC) including KSA are among 19 countries hit hardest by the decrease of petroleum prices. Oil was providing between 50 to 90 percent of government revenues before 2014 (Al-Kibsi et al., 2015). The economic systems and events in Saudi Arabia are widening up for government transformational strategic models to play actively on the vision of the heart of the Arabs and Islamic world. As the investment powerhouse and hub network connectivity of three pillars bestowed geographically beyond oil. 1. The Kingdom is the Land gifted with the “Two Holy Mosques”, the most sacred places in the planet earth, and the direction for all the billions of Muslims worldwide. 2. The vision is determined to become a global investment powerhouse. That holds strong investment opportunities and capabilities, to harness to, stimulate the economy and diversify revenues. 3. Transforming the unique strategic location of KSA global hub-network connecting three continents, Asia, Europe, and Africa. Undoubtedly, the geographical position between key global waterways and the Kingdom of Saudi Arabia an epicenter of trade and the gateway to the world.
Recently, the FDI flows to Saudi Arabia have followed a downward trend (Deng, Li, Cai, Dong, & Fu, 2017). The UNCTAD’s reported investment flow by 4/5 between 2016 and 2017, from 7.4 to 1.4 billion dollars. The significant divestments that occurred in 2017 and the negative intracompany loans by multinationals have largely contributed to this decline. The country, traditionally one of the largest recipients of FDI in West Asia, saw its share of flows in the region increased from 53% in 2009 to 27% in 2015 and barely 6% in 2017 (Deng et al., 2017). To this far, reached 232 billion in 2017 as one of the twenty economies globally, and politically with oil as an effective weapon in political situation to support their positions (e.g. June War, 1967 War (Six-Day War). and October War, 1973) (Abood, 2016). Saudi Arabia’s oil reserves account for about 25% of the world’s total oil reserves, to this end, the vision 2030 hopes to change the over-reliance of Saudi Arabia dependence on oil, but would still play exporter and pivotal role in OPEC.
The policymaker’s of the kingdom have realized the need to expand investments and increase social interventions to sustain economic growth. The forecast is necessary due to many challenges like; youth unemployment, increases in population year-in-year-out, and rapid urbanization springing up new cities (Alshuwaikhat & Mohammed, 2017). As part of the developmental agenda of the Saudi government to withstand unforeseen economic shocks and sustainability, the vision 2030, aims; 1. To diversify the economy beyond oil. 2. Utilization of natural resources untapped into the economic folds. 3. Development of human capital dynamics to fulfill the natural gifted “Blackstone” 4. Open up international relations with China, Pakistan Economic Corridor (CPEC). As the government of the day is open for more international connectivity with nations in the same ideology with the Saudi Arabia development initiatives.
1.1. The Research Questions and Objectives in the Study
The following research questions will help rectify the aims and objectives of the study;
1. How does Saudi Arabia diversify their economy dependence beyond oil?
2. How do foreign policies of the Vision 2030 positively affect international relations?
3. How does the Saudi Vision 2030 investment initiative facilitate the development and improvement of international relations with Asia, Europe, and Africa?
The main objectives of the research are to;
1. The KSA government policy implementation of the three pillars can be prioritized?
2. The analytical hierarchy process AHP integration to achieving the vision 2030.
3. The economic integration theory benefits to the successes of the vision 2030.
In the current dispensation of the KSA vision 2030, the leadership entreated the charter path of the Vision 2030 covers all aspects of life in the Kingdom, from economic, social, health, leisure, and tourism. The vision is part of building social vibrancy, to bring on board the untapped natural resources within the nation to integrate with other nations. Many efforts and attempt to address a future above over-reliance on oil plays a critical role in the kingdom’s economy. The future where oil is not considered the main and only resource, but one of many vital and crucial part of the economic boost (Saudi Vision 2030, 2016). The vision 2020 of the KSA is part of reorganizational efforts to mobilized and increase the objective of the economic integration with Europe, Asia and the rest of sovereign African countries. This will forestall and widen trade among member states to ensure bilateral and economic moving trends are enhanced (Grimwade, 2013).
1.2. The Significance of the Research
Significantly, the vision of the Kingdom of Saudi Arabia is vital to citizens and the international communities. For this reasons the study observed the following importance;
2. The study will galvanize the support of expertise both in and outside of the Kingdom to give technical knowledge for the successful implementations of the vision.
3. The public participation is vital to the governmental implementation s of policies, therefore the need to ensure most citizens understand the plans of the vision 2030.
4. The evaluations and monitoring the vicious circle of how the international policies can be affected in the implementation process of the vision 2030.
the area of government, business, industry, healthcare, shipbuilding, and education (Kristiyanti ; Sugiharto, 2007). The analytical hierarchy process (AHP) is a double aimful system of decision makers find one that best suits their goal and their comprehension of outlined policies and strategies in the case of KSA of the problem.
The AHP has made a mark and attracted the interest of many researchers including this study, mainly due to the nice algorism properties of the methodology and required input, output and process IPO and data are rather easy to obtain (Engineering, Triantaphyllou, ; Mann, 1995). The AHP is a decision support tool which can be used to solve complex decision-making problems. It uses a multi-level hierarchical structure of objectives, criteria, sub-criteria, and alternatives. The pertinent data are often driven by using a set of pairwise comparisons. These comparisons analysis makes way to obtain the weights of the importance of the decision criteria, and the relative performance measures of the alternatives policies in the decision criterion. If the comparisons are not perfectly consistent, then it provides a mechanism for improving consistency (Engineering et al., 1995).
In explaining the Analytic Hierarchy Process (AHP) is one of Multi-Criteria decision-making method originally developed by Prof. Thomas L. Saaty. It is a methodology to derive ratio scales from paired comparisons. The input can be obtained from actual measurements such as price, weight etc., or from subjective opinions such as satisfaction feelings and preference. AHP allow some small inconsistency in judgment or decision-making because humans are not always consistent. The ratio scales are derived from the principal Eigenvectors and the consistency index is derived from the principal Eigenvalue (Saaty, 2008).