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Saudi Arabia Unlocks Investment Opportunities in Public Sector as Cabinet Approves Privatization Drive

Saudi Arabia approves privatization plan that opens partnership opportunities with investors and the private sector, Asharq Al-Awsat
Saudi Arabia approves privatization plan that opens partnership opportunities with investors and the private sector, Asharq Al-Awsat
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Saudi Arabia Unlocks Investment Opportunities in Public Sector as Cabinet Approves Privatization Drive

Saudi Arabia approves privatization plan that opens partnership opportunities with investors and the private sector, Asharq Al-Awsat
Saudi Arabia approves privatization plan that opens partnership opportunities with investors and the private sector, Asharq Al-Awsat

The Saudi cabinet has approved a privatization plan aimed at increasing the participation of the private sector in the Kingdom’s infrastructure projects and provision of public services. It also works on reinforcing healthy competition according to the best international practices.

On Tuesday, the Council of Ministers passed the Private Sector Participation (PSP) Law, which works on supporting Public-Private-Partnerships (PPP) in 16 different government sectors.

Supported by the National Center for Privatization (NCP), the law will contribute to spurring economic growth by supporting the launch of privatization initiatives and projects and partnerships between the public and private sectors in front of local and international investors.

It will also be instrumental to improving the balance of payments and raising the private sector’s contribution to the Kingdom’s GDP from 40% to 65%.

The NCP is currently supporting 16 sectors targeted for privatization in developing and launching a pipeline of privatization and partnership opportunities and initiatives that will contribute to unlocking state-owned assets to the local and international private sector.

Such an initiative will help advance the goals and objectives laid out by the Saudi national plan for transformation, dubbed the Kingdom’s Vision 2030.

The Vision aims to pump more investments into the national economy, creating attractive investment opportunities for the private sector and increasing its contribution to the GDP so as to enhance the sustainability of the Saudi economy, said Saudi Finance Minister Mohammed Al-Jadaan.

The minister, who is also chairman of the Privatization Program Committee and chairman of NCP’s board of directors, said that the law aims to create an environment that allows raising the volume and level of services provided to citizens and expatriates.

He added that it also establishes the necessary flexibility in the regulatory and investment environment for privatization projects in the Kingdom in a way that supports and enhances the implementation of these projects within an attractive and stimulating regulatory and investment environment for short- and long-term investments.

According to Al-Jadaan, the new law will enhance the participation of the private sector in economic growth and make available procedures related to privatization projects.

NCP CEO Rayan Naqadi, for his part, said that the law aims to raise the contribution of the private sector in government projects, enable the distribution of responsibilities and risks between the government and the private sector, reduce the government’s capital budget, and organize all activities and procedures related to implementing privatization projects.

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G7 Leaders Meet in Canada Hoping to Avoid Trump Clash

Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
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G7 Leaders Meet in Canada Hoping to Avoid Trump Clash

Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)

Group of Seven leaders gather in the Canadian Rockies starting on Sunday amid growing splits with the United States over foreign policy and trade, with host Canada striving to avoid clashes with President Donald Trump.

While Prime Minister Mark Carney says his priorities are strengthening peace and security, building critical mineral supply chains and creating jobs, issues such as US tariffs and the conflicts in the Middle East and Ukraine are expected to feature heavily.

Israel and Iran launched fresh attacks on each other overnight into Sunday, killing scores hours before the leaders of the world's industrialized democracies meet.

"This issue will be very high on the agenda of the G7 summit," German Chancellor Friedrich Merz said. He said his goals are for Iran to not develop or possess nuclear weapons, ensuring Israel's right to defend itself, avoiding escalation of conflict and creating room for diplomacy.

The summit takes place in the mountain resort of Kananaskis, some 90 km (56 miles) west of Calgary.

The last time Canada played host, in 2018, Trump left the summit before denouncing then Canadian Prime Minister Justin Trudeau as "very dishonest and weak" and instructing the US delegation to withdraw its approval of the final communique.

"This will be a successful meeting if Donald Trump doesn't have an eruption that disrupts the entire gathering. Anything above and beyond that is gravy," said University of Ottawa international affairs professor Roland Paris, who was foreign policy adviser to Trudeau.

Trump has often mused about annexing Canada and arrives at a time when Carney is threatening reprisals if Washington does not lift tariffs on steel and aluminum.

"The best-case scenario... is that there's no real blow-ups coming out of the back end," said Josh Lipsky, chair of international economics at the Atlantic Council think tank and a former White House and State Department official.

Carney's office declined to comment on how the Israeli strikes would affect the summit.

Diplomats said Canada has ditched the idea of a traditional comprehensive joint communique and would issue chair summaries instead, in hopes of containing a disaster and maintaining engagement with the US.

A senior Canadian official told reporters that Ottawa wanted to focus on actions the seven members - Canada, France, Germany, Italy, Japan, the United Kingdom and the United States - could take together.

Canadian Senator Peter Boehm, a veteran former diplomat who acted as Trudeau's personal representative to the 2018 summit, said he had been told the summit would last longer than usual to give time for bilateral meetings with the US president.

Expected guests for parts of the Sunday to Tuesday event include leaders from Ukraine, Mexico, India, Australia, South Africa, South Korea and Brazil.

"Many will want to talk to President Trump about their own particular interests and concerns," Boehm said by phone.

A senior US official said on Friday working discussions would cover trade and the global economy, critical minerals, migrant and drug smuggling, wildfires, international security, artificial intelligence and energy security.

"The president is eager to pursue his goals in all of these areas including making America’s trade relationships fair and reciprocal," the official said.

The visit of Ukrainian President Volodymyr Zelenskiy to the Oval Office in February descended into acrimony and has served as a warning for other world leaders about the delicate dance they face in negotiating with Trump.

But diplomats say the frustration of dealing with the Trump administration has made some keener to assert themselves.

'THE BIG TEST'

Canada has long been one of Ukraine's most vocal supporters. Trump came to power promising to end the war with Russia within 24 hours, but diplomatic efforts have stalled.

One Ukrainian official involved in preparations for the summit said hope had faded for a strong statement in support of Ukraine. Instead, success for Kyiv would merely constitute an amicable meeting between Trump and Zelenskiy.

A European official said the G7 summit and the NATO summit in The Hague later in June provided an opportunity to underscore to Trump the need to press ahead with a sanctions bill put together by US senators alongside a new European package to pressure Russia into a ceasefire and broader talks.

Trump’s first international summit of his second term will offer some early clues on whether he is interested in working with allies to solve common problems, said Max Bergmann, a director at the Center for Strategic and International Studies.

“The big overarching question here is, basically, is the United States still committed to formats like the G7? That is going to be the big test,” Bergmann said.