Saudi Arabia Announces Massive $51bn Private Sector Investment Drive

Saudi Arabia Announces Massive $51bn Private Sector Investment Drive

The private sector will receive investments totaling SR192.4 billion ($51 billion) through Saudi Arabia’s Shareek programme.

The investments, the first stage of a $billion programme, were unveiled in the presence of Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Big Businesses Investment Committee.

The Shareek programme is Saudi Arabia’s special initiative for big businesses. It is meant to help the country’s private sector reach its full potential and contribute to the achievement of the goals set forth in Vision 2030.

Private sector investment in Saudi Arabia

28 enterprises are currently registered in the Shareek initiative, which was introduced by the Crown Prince in March 2021.

Twelve Shareek programme projects were approved during a signing ceremony that was attended by senior government ministers and representatives of the private sector.

Eight businesses in several key important industries will get investment. The initiatives will help the Kingdom’s economy thrive, diversify its industries, encourage innovation, and make public-private partnerships even more possible.

With government backing, the Shareek programme assists qualifying businesses in accelerating planned projects and discovering fresh potential partnerships and investment opportunities.

With investments totaling SR192.4 billion ($54 billion), the first wave of sponsored projects will have a strategic influence on a number of economic sectors in the Kingdom.

Large corporations will spend SR120.23 billion ($32.7 billion) by the end of 2030 in order to boost the local economy by more than SR466.83 billion ($124.4 billion) by 2040 and add 64,451 new jobs.

According to Abdulaziz Al Arifi, CEO of Shareek, the Crown Prince’s Vision 2030 for the Kingdom works to position the country as a top location for investment and growth by emphasizing the development of partnerships with the private sector as a vital engine for long-term economic success.

The 12 initiatives that the Shareek programme has made possible across four sectors show that it has also become a top option for big private sector businesses.

Al Arifi estimated that the total investment value to be roughly SR192 billion ($54 billion), including SR 120 billion ($32.7 billion) spent by big businesses by the end of 2030 to achieve more than SR466 billion ($124.4 billion) in GDP growth by 2040, or a multiplier of 2.43.

According to Al Arifi, the projects foster the expansion of eight domestic businesses and help to increase their level of international competitiveness. They also have a significant knock-on effect that affects entire value chains, creating excellent investment opportunities for a larger sector of the private sector.

According to Al Arifi, one of the key factors Shareek takes into account while evaluating new projects is the project’s overall economic impact.

The largest green hydrogen plant in the world, which ACWA Power is building in collaboration with NEON Green Hydrogen Company and Air Products Qudra, will get Shareek support. The initiative supports Saudi Arabia’s goal of becoming a net zero energy nation by showcasing the country’s leadership in the green energy sector.

Support will be given to Saudi Arabian Mining Company (Ma’aden) to speed up the Phosphate 3 project in Wa’ad Al Shamal, which is expected to make the company the third largest producer of phosphate fertilizers worldwide by 2029 and strengthen the Kingdom’s position in the global agricultural value chain, contributing to food security worldwide.

SABIC has obtained support for a catalyst project that is intended to lessen Saudi Arabia’s reliance on imports and strengthen its position as an exporter by creating KSA’s first hub for catalyst production.

The production of methionine and ammonium sulfate by Advanced Petrochemical Company will be aided, improving domestic food security and the effectiveness of animal production. Over 21,000 new job opportunities would also be generated by the project in Saudi Arabia.

STC will put an EMC cable project into action, enhancing Saudi Arabia’s status as a dependable data hub for the MENA region. Also, Zain will quicken a data centre project that will help the Kingdom become a digital economy by guaranteeing that it is prepared for future IT breakthroughs.

Under a project financed by Shareek, Bahri will increase its capacity for ammonia transportation. This project will offer ammonia transport services for the first time in the Kingdom, eliminating reliance on foreign vessels and boosting local content in the logistics industry.

By 2030, Shareek wants to release SR5 trillion ($1.3 trillion) in domestic private sector investments and help achieve the targets outlined in Vision 2030, which include raising the private sector’s share of GDP to 65% and raising non-oil exports from 16% to 50%.

Many sectoral supervision committees headed by senior government personnel support the implementation of Shareek. The first round of initiatives to get support was announced at the event. It’s anticipated that many more will receive backing; they will be disclosed in due course.

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