The recently released data on the National Privatization Strategy in Saudi Arabia represents a pivotal turning point in the Kingdom's economic transformation, reflecting its shift towards a sophisticated economic management model focused on maximizing overall returns. This is achieved through strategic partnerships and the channeling of private capital within a clear and transparent regulatory framework. The figures clearly indicate the development of a disciplined investment portfolio, managed according to global market principles, where success is measured by the scale of economic impact, the sustainability of financial flows, and the efficient allocation of risk between the public and private sectors.
The context of Vision 2030 and economic transformation
These accelerated steps are an integral part of the Kingdom's Vision 2030, launched in 2016 with the aim of reducing dependence on oil and diversifying sources of income. Privatization has been a cornerstone of this vision, seeking to increase the private sector's contribution to GDP from 40% to 65%. This historical context clarifies that the current figures are not merely financial transactions, but rather a practical manifestation of restructuring the national economy and transforming the government's role from service provider to regulator and supervisor, ensuring quality and efficiency.
Ambitious figures and targets
The strategy targets 18 vital sectors within a single scope, with a target of capital investments from the private sector amounting to 240 billion riyals by 2030. This huge volume of investments reflects a repositioning of the state as a market regulator, setting standards and managing systemic risks, while private capital takes on the role of operation, development and innovation.
In terms of partnership details, the estimated value is approximately SAR 43 billion, distributed across 221 contracts, indicating an average of nearly SAR 195 million per contract. This average reflects a strategic focus on medium- to large-scale contracts capable of generating cumulative operational efficiency, while ensuring risk diversification across a wide range of agreements rather than concentrating it in a limited number of deals that could become burdensome in the event of failure.
Selectivity and global quality standards
From a selectivity perspective, the data shows that 147 priority investment opportunities were chosen from among more than 500 submitted projects, representing an acceptance rate of approximately 29%. This rate is entirely consistent with international financial center models that employ rigorous capital screening, allocating capital to projects with the highest potential for return and sustainability, while excluding low-efficiency or high-risk projects. This enhances the attractiveness of the Saudi investment environment for both foreign and domestic investors.
Financial returns and expected economic impact
On the financial front, the strategy aims to achieve SAR 27 billion in net government revenue. This indicator places the allocation within a model of generating direct financial value for the public treasury, while maintaining the state's role in regulation, oversight, and ensuring the quality of services provided to citizens. Net revenue here serves as the ultimate performance metric, linking public policies with fiscal discipline. This initiative is expected to contribute to creating new job opportunities, transferring knowledge and technology, and improving the quality of services in sectors such as health, education, transportation, and water.
Expert reading of the scene
Commenting on these developments, economist Eid Al-Eid believes the figures "reflect the state's shift towards managing a complete investment cycle, beginning with selectivity and culminating in a measurable net return." Al-Eid highlights a crucial point regarding risk management, explaining that "distributing 43 billion riyals across 221 contracts mitigates systemic risks and enhances the resilience of the investment portfolio." He concludes his analysis by emphasizing that "the strategy's focus on a limited number of high-quality opportunities aligns with the practices of global financial centers, which prioritize depth and quality over uncalculated quantitative expansion.".
