Saudi Arabia is using public-private partnerships (PPPs) to speed up infrastructure development and support job creation, while keeping government spending balanced. Experts say these partnerships are helping the Kingdom attract more international investors and diversify its economy.
Emilio El-Asmar, partner at Oliver Wyman, explained that Saudi Arabia's PPP system is clear and reliable, offering secure contracts and government support. He added that financing tools and co-investment from the government reduce risks, making the country attractive for private players.
Under Vision 2030, Saudi Arabia aims to raise the private sector's contribution to GDP from 40 percent to 65 percent. New laws such as the PPP and Privatization Law ensure transparency and accountability, while agencies like the National Center for Privatization work to involve private firms in energy, transport, and water projects.
Experts highlight that PPPs are already improving services in health, education, water, and transportation. The expansion of Madinah airport, for example, increased capacity from 5 million to 8 million passengers, creating jobs and revenue while easing pressure on the government.
Looking ahead, water and renewable energy projects will attract more global investors. Large-scale solar and wind initiatives, as well as desalination and wastewater projects, are expected to be major growth drivers. Logistics, ports, and municipal services are also opening up new opportunities.
Challenges remain, including complex approval processes, limited competition, and public concerns over privatization. However, with clearer pipelines, stronger risk-sharing, and transparent communication, experts believe PPPs will play a central role in Saudi Arabia's economic diversification.
Source: (https://www.arabnews.com/node/2614368/business-economy)