Minister of Finance and Chairman of the Board of Directors of the National Center for Privatization, Mr. Mohammed bin Abdullah Al-Jadaan, announced the commencement of the "National Privatization Strategy," following the approval by the Council of Economic and Development Affairs to conclude the "Privatization Program" after the successful completion of all its foundational objectives. This announcement marks a new phase of economic transformation in the Kingdom of Saudi Arabia, moving the privatization system from planning and development to actual implementation and investment expansion.
From establishment to economic empowerment
This transformation is a pivotal step in the Kingdom’s Vision 2030, as privatization is a cornerstone of diversifying the national economy and reducing dependence on oil. The program’s first phase successfully established the necessary legislative and regulatory frameworks, paving the way for the launch of the new strategy aimed at deepening the partnership between the public and private sectors. This allows the government to focus more on its legislative and oversight roles, while the private sector assumes responsibility for operations and service delivery, thereby increasing the efficiency of government spending and enhancing fiscal sustainability.
Tangible achievements and record-breaking figures
Al-Jadaan explained that the privatization program has achieved significant progress since its launch in 2018, most notably the establishment of the National Center for Privatization, which has become the main driver of this system. Previous efforts have resulted in:
- More than 200 approved projects with estimated investments of 800 billion riyals .
- The signing of approximately 90 contracts , ranging from ownership transfers to strategic partnerships in vital sectors.
- Developing a legislative environment that is attractive to local and foreign investment.
National Privatization Strategy Objectives
The new strategy, approved by the Cabinet, aims to bring about a qualitative leap in the quality of services provided to citizens and residents across 18 targeted sectors. Through this strategy, the Kingdom seeks to transform its infrastructure to be among the best in the world. The ambitious targets up to 2030 include the following:
- The number of contracts signed with the private sector has been increased to more than 220 contracts .
- Attracting capital investments from the private sector exceeding 240 billion riyals .
- Creating tens of thousands of quality jobs for citizens.
- Identifying and ranking 145 high-priority and highly attractive investment opportunities.
Economic and developmental impact
The importance of this strategy extends beyond the financial aspect, encompassing an improved quality of life through enhanced efficiency of public facilities and services. It will also contribute to strengthening the Kingdom's economic competitiveness regionally and internationally, making it a preferred destination for global investments seeking promising opportunities within a stable and transparent regulatory environment. Al-Jadaan emphasized that the Kingdom is steadily progressing towards becoming a global leader in public-private partnership models.
