#Saudi Arabia #Riyadh #Public-Private Partnerships #Privatization Strategy

Saudi Arabia's New National Privatization Strategy

Recently, the Kingdom of Saudi Arabia has unveiled an ambitious National Privatization Strategy, aiming to significantly enhance the role of public-private partnerships (PPPs). This strategic move is designed to deliver and operate large-scale projects that align with the broader economic diversification goals set out in the Saudi Vision 2030.

The initiative, guided by the National Center for Privatization and Public-Private Partnerships (NCP), aims to attract long-term foreign direct investment (FDI). This investment is crucial for improving the quality and efficiency of public infrastructure and services within Saudi Arabia, while simultaneously enabling the government to concentrate on its regulatory and legislative responsibilities.

Key Objectives of the Strategy

One of the standout features of the National Privatization Strategy is its goal to mobilize over $64 billion (equivalent to SAR 240 billion) in private sector capital investments by the year 2030. The strategy is set to initiate more than 220 public-private partnership contracts across various sectors. By targeting multiple industries, including transport, healthcare, and education, the plan is expected to create tens of thousands of jobs and ensure high standards for public services.

Saudi Minister of Finance, His Excellency Mr. Mohammed bin Abdullah Al-Jadaan, underscored this initiative by stating,
>“We strive to establish future-ready infrastructure with high quality and efficiency, ensuring that public services delivered to citizens, residents, and visitors are among the best in the world.”

Transition from Foundational to Execution Phase

The launch signifies a critical transition from the previous foundational phase achieved under the 2018 Privatization Program to a more focused phase dedicated to execution and delivery. The upcoming strategy will pave the way for fresh opportunities in both local and international private sector investments. Notable projects include entire sectors such as logistics and water management, along with significant educational infrastructure and real estate ventures.

The government is also on the lookout for partnership opportunities in key projects like the Saudi Landbridge, which aims to connect the east and west coasts of the country. In addition to this, projects related to water desalination, treatment facilities, and strategic reservoirs will be prioritized along with the development of international airports.

Programs Supporting the Strategy

The core framework of the National Privatization Strategy encompasses five primary programs geared toward planning, regulation, human capital development, public awareness, and the prioritization of projects. These programs are further augmented by 42 executive initiatives designed to facilitate the privatization ecosystem and meet the objectives aligned with Vision 2030.

The previous 2018 Privatization Program laid a strong foundation, achieving key milestones such as the formation of the National Center for Privatization, the approval of over 200 projects with investments totaling around $213 billion, and signing nearly 90 contracts within various sectors.

The previous program also bolstered private sector engagement while simultaneously improving the operational effectiveness of government assets. It further enriched the legal and regulatory framework that supports investment, thereby enhancing the Kingdom's competitive edge both regionally and globally.

Conclusion

As Saudi Arabia embarks on this new chapter with its National Privatization Strategy, the emphasis on public-private partnerships holds the promise of transformative changes within the Kingdom. By fortifying the private sector's role in development, the strategy not only aligns with the objectives of Vision 2030 but also positions Saudi Arabia as a formidable player in the global investment landscape.

For further details and initiatives by the National Center for Privatization, visit their official website here to learn about ongoing and upcoming projects, and how they fit into Saudi Arabia’s broader economic vision.