A strategic step towards a diversified and sustainable economy
Saudi Finance Minister Mohammed Al-Jadaan announced the start of the implementation of the “National Privatization Strategy”, which was approved by the Council of Ministers in March 2021. This strategy represents a qualitative leap in the Kingdom’s economic journey, as it aims to restructure the relationship between the public and private sectors, thereby raising the quality and efficiency of infrastructure and public services provided to citizens and residents, and directly contributing to achieving the objectives of the Kingdom’s Vision 2030.
From inception to implementation: The legacy of the privatization program
The launch of the strategy comes as a culmination of the success of the Privatization Program, which was launched in 2018 as one of the Vision 2030 initiatives. The Minister of Finance, who also chairs the board of directors of the National Center for Privatization, announced the program's conclusion after it successfully fulfilled its founding objectives. Over the past years, the program has laid a solid foundation for the privatization ecosystem in the Kingdom, with one of its most prominent achievements being the establishment of the National Center for Privatization as a leading enabler in this field. The Center has successfully identified more than 200 approved projects, with a total investment value estimated at approximately SAR 800 billion, and nearly 90 contracts have been signed, ranging from asset transfers to strategic public-private partnerships across various vital sectors.
Ambitious goals and a promising future
The National Privatization Strategy outlines a more dynamic economic future, aiming to empower the private sector to become the primary driver of sustainable development. This will allow the government to focus more on its core role of legislation, regulation, and oversight, thereby enhancing spending efficiency and the nation's financial sustainability. Targeting 18 different sectors, the strategy aspires to sign over 220 partnership agreements by 2030, attracting over SAR 240 billion in private sector capital investments, which will create tens of thousands of high-quality jobs for Saudi citizens.
Implementation mechanisms and attractive investment opportunities
To ensure the achievement of these ambitious goals, the strategy established a comprehensive implementation framework comprising five main programs and 42 high-quality initiatives. More than 145 priority privatization opportunities were also identified and prioritized, representing promising and attractive investment opportunities for both local and international private sector companies. Al-Jadaan stated, “In the Kingdom, we strive to establish a future-proof infrastructure of high quality and efficiency, enabling the provision of world-class public services… and reinforcing the Kingdom’s position as a global leader in public-private partnerships.”.
Local and international impact of the strategy
Domestically, this strategy is expected to directly impact citizens' lives by improving the quality of services in vital sectors such as health, education, transportation, water, and municipal services. Regionally and internationally, the launch of this strategy will solidify the Kingdom's position as a leading and reliable investment destination, enhance its competitiveness in attracting foreign capital and global expertise, support economic diversification, reduce dependence on oil, and make the Saudi economy a model to be emulated in the region.
