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Saudi Arabia Announces First Bundle of Projects by 'Shareek' Program Worth $51 Billion

Saudi Crown Prince amid Ministers and CEOs during the ceremony of announcing the first bundle of projects supported by the Private Sector Partnership Reinforcement (Shareek) Program in Riyadh on Wednesday (AAWSAT)
Saudi Crown Prince amid Ministers and CEOs during the ceremony of announcing the first bundle of projects supported by the Private Sector Partnership Reinforcement (Shareek) Program in Riyadh on Wednesday (AAWSAT)
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Saudi Arabia Announces First Bundle of Projects by 'Shareek' Program Worth $51 Billion

Saudi Crown Prince amid Ministers and CEOs during the ceremony of announcing the first bundle of projects supported by the Private Sector Partnership Reinforcement (Shareek) Program in Riyadh on Wednesday (AAWSAT)
Saudi Crown Prince amid Ministers and CEOs during the ceremony of announcing the first bundle of projects supported by the Private Sector Partnership Reinforcement (Shareek) Program in Riyadh on Wednesday (AAWSAT)

In the presence of Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Large Companies Investment Committee, a ceremony was held on Wednesday to announce the first bundle of projects supported by the Shareek program, which is dedicated for large companies to help unlock the full potential of Saudi Arabia’s private sector, and contribute to achieving the national targets defined by Vision 2030.

The program was launched by the Crown Prince on 30 March 2021, who will also oversee its implementation as the Chairman of the Large Companies Investment Committee. To date, 28 companies are enrolled in the Shareek program.

A number of senior government ministers and private sector leaders attended the ceremony and witnessed the signing of framework agreements for 12 projects that have been approved within the Shareek incentives criteria, across eight companies, in a number of strategic sectors.

The projects will contribute to the Kingdom's economic growth, diversify industries, promote innovation, and further enable public-private partnerships.

The Shareek program seeks helping eligible companies accelerate planned projects and identify new potential partnerships and investment opportunities through government support.

In remarks during the ceremony, CEO of Shareek program Abdulaziz Al-Arifi, said that the Kingdom’s Vision 2030, led by the Crown Prince, contributes to making the Kingdom a leading destination for investment and growth, with its focus on bolstering partnerships with the private sector as a key catalyst for sustainable economic development.

Al-Arifi revealed that the overall value of the announced investments is around SAR 192 billion ($51.2 billion), including SAR 120 billion spent by large companies by the end of 2030 to achieve more than SAR 466 billion in GDP growth by 2040.

He added that these projects support the growth of eight national companies and contribute to raising their international competitiveness, in addition to generating a strong ripple effect across entire value chains.

The signing ceremony included the announcement of strategic projects including one by Aramco, which will receive support to accelerate implementation of five projects, creating more than ten thousand jobs, including a joint venture steel plate manufacturing project, aiming to make Saudi Arabia 100% self-sufficient for steel plate demand by 2030; a cloud project which will attract Google Cloud services into the Kingdom and establish Saudi Arabia as a hub for advanced cloud computing technologies; an engine manufacturing project which will aid in the development of a sustainable maritime sector and unlock greater value from metals and machinery sectors; a casting and forging project in Ras Al Khair.

Also in the energy sector, ACWA Power will receive Shareek support for the construction of the world’s largest green hydrogen plant, which is being developed in partnership with NEOM Green Hydrogen Company and Air Products Qudra. The project demonstrates Saudi Arabia’s capabilities as a green energy leader, in support of the Kingdom’s net zero ambitions.

Saudi Arabian Mining Company (Maaden) will receive support to accelerate its Phosphate 3 project in Wa’ad Al Shamal, which is set to position the company as the third largest global producer of phosphate fertilizers by 2029 and enhance the Kingdom’s position in the world’s agricultural value chain, aiding global food security.

Within the Kingdom’s petrochemicals sector, the industry leader SABIC has received support for a catalyst project, primed to reduce Saudi Arabia’s import dependency and enhance its position as an exporter by establishing KSA’s first catalyst manufacturing hub.

Through a joint venture, Shareek will also provide support to Advanced Petrochemical Company to produce methionine, which will contribute to enhancing food security in the Kingdom and raising the efficiency of food security. Stc will implement an EMC cable project, strengthening Saudi Arabia’s position as a MENA region digital hub and reliable route for data traffic. Also, Zain Saudi Arabia will be accelerating a data center project, set to help transform the Kingdom into a digital economy by ensuring readiness for future IT advancements.

Saudi logistics giant Bahri will scale up its capacity for ammonia transportation through a project supported by Shareek, set to provide ammonia transport services for the first time in the Kingdom, reducing international vessel dependency and enhancing local content in the logistics sector.

Shareek aims to unlock SAR 5 trillion in domestic private sector investments by 2030 and contribute to the goals set out in Vision 2030, which target an increase in private sector GDP contribution to 65% and an increase non-oil exports from 16% to 50%.

The program is implemented with the support of several sectorial supervisory committees led by senior government officials. The projects announced at the event represent the first wave of supported projects. Many more projects are expected to be supported, and these will be announced in due course.

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Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
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Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)

Relations between Saudi Arabia and Sweden are witnessing rapid development with the expansion of cooperation in the fields of innovation, logistics and services and others.

Swedish Ambassador to Saudi Arabia Petra Menander told Asharq Al-Awsat that the Saudi-Swedish joint committee is currently working on further deepening relations.

“In November last year, we agreed on 45 activities across four sectors to improve our cooperation, half of which have been implemented,” she added.

“Sweden and Saudi Arabia are natural partners in the global transition toward a more sustainable, knowledge-based economy,” she remarked.

“The presence of approximately 60 Swedish companies in the Kingdom, many of which are expanding their operations, demonstrates strong confidence in the Saudi market and its long-term potential,” she stressed.

“Saudi Arabia is Sweden’s largest trading partner in the Middle East and North Africa. While trade volumes vary year to year, the overall trajectory is one of steady growth. Our bilateral trade grew almost 5 % last year and has increased by more than 90% since 2018,” the ambassador went on to say.

Moreover, Menander added: “As the European Union, we are Saudi Arabia's most important partner for investments and trade and that is a relationship that can grow deeper. Sweden is one of the strongest supporters of free trade within the European Union and we believe that there is a great potential to further increase trade between our countries.”

“Half of the Swedish companies have or are planning to set up regional headquarters in Saudi Arabia, many of them are engaged in local manufacturing in the Kingdom and they invest in research and in training the thousands of young Saudi talents they employ,” she said.

She added that Sweden has a strong desire to expand in green energy and smart climate solutions. Swedish companies, such as Hitachi Energy, ABB and Systemair, are contributing to energy efficiency, electrification, and renewable infrastructure.

In the fields of logistics and infrastructure, she noted that “Swedish engineering and design firms are contributing to the planning and execution of major infrastructure projects and have a strong track record in delivering leading solutions for major projects, including within road, rail and air transport with companies such as Sweco, Volvo Trucks and Scania.”

Healthcare and life sciences are among the foundations of cooperation. “Swedish firms such as Diaverum, Getinge, and AstraZeneca are delivering high-quality care and conducting clinical research in the Kingdom,” said Menander.

Furthermore, she revealed that Swedish companies, such as Epiroc and Quant, are helping to modernize and decarbonize the mining sector through advanced technologies.

Sweden is also a global leader in digital maturity and connectivity. Companies like Ericsson are not only advancing 5G and 6G technologies but also investing in local R&D partnerships, added the ambassador.

In terms of smart industry and automation, she said: “With companies like Tetra Pak, Roxtec and SKF, Sweden supports the development of sustainable and efficient industrial ecosystems.”

These areas reflect Sweden’s strengths in innovation, equality, and long-term thinking essential for building resilient and future-ready economies, added the ambassador.

Furthermore, Menander described ties between Saudi Arabia and Sweden as excellent. “They are grounded in mutual respect, shared ambitions, and a commitment to long-term partnership. Our kingdoms are united by a forward-looking vision - one that embraces creativity, working together towards sustainability and growth,” she told Asharq Al-Awsat.

“In foreign policy our positions align om many key areas, as was seen during political consultations in Stockholm between Vice Minister of Foreign Affairs Eng. Waleed bin Abdulkarim El-Khereiji and State Secretary for Foreign Affairs Dag Hartelius.”

She also noted the “close cooperation between Saudi and Swedish business sectors, where there are great opportunities to enhance the partnership between our two countries.”

“I attended the executive meeting of the Saudi-Swedish Joint Business Council in Stockholm in May, where leading private companies from our two kingdoms discussed new economic initiatives,” she said.

“There about 60 Swedish companies with a presence in Saudi Arabia feel at home and are committed to strengthening their ties with the Kingdom. According to a Business Climate Survey which was conducted among Swedish companies and just published, 91% view the business climate as good or very good and 74% plan to increase their investments.”

“We also see an exciting dialogue in new areas, for instance through Swedish participation in the recent Arab European Cities Dialogue, where participants from Sweden saw many similarities when two regions came together to discuss governance, urban planning, and digitalization for a better future,” stressed Menander.

“We see that the numbers of visitors in both directions between our countries are going up, and we see new partnerships budding almost every day. We see more Saudi film and music appearing in Sweden and we increasingly see Swedish fashion, music and gaming in Saudi Arabia,” she remarked. “In fact, I often meet young Saudis who know about Sweden because they work for Swedish companies like Ikea and H&M.”

“Finally, we see a great interest in deeper cooperation in the field of innovation. Sweden ranks among the most innovative countries in the world and Saudi Arabia makes impressive investments into building an innovative ecosystem with close links between research and entrepreneurship,” she noted.

“We are happy to see that the cooperation is flourishing, including through institutional cooperation and by visits of start-ups both from Saudi Arabia to Sweden and from Sweden to Saudi Arabia,” continued Menander.

“Our cooperation spans a wide range of sectors where Swedish expertise and values align closely with the ambitions of Vision 2030. During our recent national day celebration, some of our companies displayed examples of how they contribute to these goals,” she said.

“These investments are aligned with Saudi Arabia’s Vision 2030, focusing on sectors such as green transition, healthcare, logistics and smart manufacturing and in many cases also include investments into research and development in Saudi Arabia,” the ambassador stated. “In parallel, we see a growing interest in collaboration between Swedish and Saudi incubators, particularly to support small and medium-sized enterprises (SMEs).”

“In May, Business Sweden, the Swedish Trade and Invest Council in Riyadh, organized two trade delegations to Saudi Arabia. The first focused on infrastructure projects and included Swedish companies specializing in digital solutions, construction equipment, energy, waste management, and air and water treatment solutions. These companies explored how Swedish expertise could contribute to Saudi Arabia's Vision 2030 by engaging with several giga projects,” Menander explained.