Saudi Arabia plans to set up a holding company for military industries that would be fully owned by the government at first and listed later on the Saudi bourse.
"We are now about to establish a holding company for the military industries 100 per cent owned by the government that will be listed later in the Saudi market," Prince Mohammed said.
"We expect it to be launched by end of 2017 with more details."
Saudi Arabia will introduce a "green card" system within five years to allow resident expatriates in the Kingdom to have more rights in order to improve its investment climate.
Prince Mohammed bin Salman said planned sweeping reforms, of which the proposed green card is one, will be implemented even if oil prices rise back above $70 a barrel and pledged to end Riyadh's dependence on crude revenue by 2020.
Saudi Arabia's new "Vision 2030" reform plan will not require major spending but will involve restructuring, Prince Mohammed said in a television interview, adding that spending on infrastructure projects would continue.
Prince Mohammed added that the government would restructure the Housing Ministry to help more citizens buy homes, said subsidies should not go to the rich, and said he aimed to reduce unemployment among Saudi nationals to 7 per cent from 11.6 per cent.
Saudi Arabia's stock market recovered from early losses and rose in late trade on Monday as Prince Mohammed outlined a sweeping economic reform plan.
Measures include building up the government's Public Investment Fund to become a major player in global markets, restructuring the housing ministry to increase supply of affordable housing.
Saudi Arabia will sell shares in state oil giant Aramco and set up the world's largest wealth fund under a long-term economic reform plan.
"We plan to sell less than five percent of Aramco. Aramco's size is very big. It is estimated at between $2 trillion and $2.5 trillion," Prince Mohammed said.
"We plan to set up a $2 trillion sovereign wealth fund... part of its assets will come from the sale of a small part of Aramco," he added.
The Saudi 2030 vision will probably be viewed positively by market participants.
Plans for improved governance, transparency, structural reform, and evolving social contracts should underpin the outlook for many industries.
The ambition is evident and the government appears confident in embracing technology and cultural development in the execution of its plans. Implementation and the impact on government finances will likely continue to be closely monitored.
Initial reaction, I appreciated the transparency and addressing issues that have previously not been addressed, such as military spending, the housing issue and unemployment...I believe this vision has a lot to offer and I am optimistic, but the biggest challenge will be the execution.
The markets did react positively as the interview was taking place, but the efficacy of this reaction may be short-lived.
The proactive approach to try and reduce the corruption and inefficiencies that led to mispricing, and cost the government billions of riyals, is a huge step forward in the right direction...
As a Saudi I am optimistic, as a businessman I am encouraged, but we have to see how the government plans on pushing through with those plans in a way that is mutually beneficial to the private sector, so that we can continue absorbing more employees from the public sector.Source – Gulf news dated 26-04-2016