Al-Haqil: 40% of municipal services and opportunities worth 250 billion will be allocated
Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, confirmed significant progress in the privatization of the municipal sector, announcing the privatization of 12 out of 29 targeted services in major cities across the Kingdom. This represents 40% of the final target of 70%. His remarks came during his participation in a ministerial session at the fourth edition of the Public Investment Fund and Private Sector Forum, where he emphasized the Ministry's commitment to ensuring the highest standards of transparency in investment processes and safeguarding the rights of all participating parties.
Huge investment opportunities in the housing sector
Speaking about the housing sector, Al-Hogail revealed the enormous investment opportunities it offers, exceeding 250 billion riyals. He explained that these opportunities are not limited to real estate development alone, but extend to engineering supervision contracts, marketing operations, and contracting, thus opening the door wide to various categories of companies, from micro-enterprises to medium and large enterprises. This diversity reflects the maturity of the Saudi real estate market and the expanding scope of strategic partnerships with the private sector, which has become the primary driver of urban development.
The economic weight of the municipal sector
The minister reviewed figures reflecting the economic weight of the municipal sector, noting its oversight of more than 7 million workers and approximately 970,000 establishments operating in 2,450 diverse professions. He emphasized that making data available to the private sector is a top priority for the ministry to achieve sustainable added value and empower investors to make informed decisions.
Context of Vision 2030 and Strategic Transformation
These rapid developments align with the goals of Saudi Vision 2030, which prioritizes empowering the private sector and enhancing the efficiency of government services. The shift from direct government operation to a regulatory and legislative role is a pivotal step towards improving the quality of life in Saudi cities. This is evident in the restructuring of the housing sector, which has undergone complete privatization across its value chains, financing, and development, while the General Authority for Real Estate assumes the legislative and regulatory role, supported by advanced digital tools.
The "Opportunities" platform and the future of municipal investment
Regarding digital investment tools, Al-Hogail highlighted the significant success of the "Furas" platform, which currently boasts over 180,000 investors and has recorded contracts exceeding SAR 13 billion. He also discussed ambitious future plans, including the signing of over 190 park contracts by 2025, with a financial impact exceeding SAR 1.5 billion. The minister projected that direct investment opportunities in the municipal (non-development) sector will surpass SAR 130 billion by 2030, driven by expansion in technology, artificial intelligence, logistics, and tourism, thereby enhancing the regional and international competitiveness of Saudi cities.
