Saudi Arabia’s Minister of Investment, Khalid Al-Falih, affirmed that the Kingdom is entering a new phase of economic partnership, with the private sector expected to finance 40% of total infrastructure investments in the country. This statement reflects a fundamental shift in the Kingdom’s economic policy, which aims to reduce overall reliance on direct government spending and open the door for private, domestic, and foreign capital to contribute to building a sustainable economy.
Vision 2030 and strengthening the role of the private sector
This step aligns with the ambitious goals of Saudi Vision 2030, which aims to increase the private sector's contribution to GDP to 65%. Infrastructure projects are the backbone of this transformation, with the Kingdom undergoing a massive development process encompassing transportation, logistics, water, renewable energy, and telecommunications. Engaging the private sector at such a high level not only aims to provide liquidity but also to enhance operational efficiency and facilitate knowledge and technology transfer.
National Investment Strategy
Al-Falih’s remarks are closely linked to the National Investment Strategy launched by Crown Prince Mohammed bin Salman, a key driver for achieving the Vision 2030 goals. This strategy aims to inject more than 12 trillion riyals into the local economy by 2030. Through the “Sharik” program and privatization initiatives, the government is working to remove obstacles for investors to ensure the flow of funds into major projects, thereby enhancing the attractiveness of the Kingdom’s investment environment.
Expected economic impact
This trend is expected to yield tangible economic results in the medium and long term. Domestically, private sector financing of infrastructure will create thousands of jobs for citizens and improve the quality of services provided. Regionally and internationally, this openness will solidify Saudi Arabia's position as a global logistics hub connecting three continents and enhance confidence in the Saudi economy as a safe and profitable destination for foreign capital, particularly in light of the recent legislative and regulatory reforms in the Kingdom.
