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Saudi Arabia Bolsters Private Sector Partnership to Achieve Economic Sustainability

The Saudi government focuses on supporting the national private sector to reflect positively on its GDP (Asharq Al-Awsat)
The Saudi government focuses on supporting the national private sector to reflect positively on its GDP (Asharq Al-Awsat)
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Saudi Arabia Bolsters Private Sector Partnership to Achieve Economic Sustainability

The Saudi government focuses on supporting the national private sector to reflect positively on its GDP (Asharq Al-Awsat)
The Saudi government focuses on supporting the national private sector to reflect positively on its GDP (Asharq Al-Awsat)

The Saudi Council of Ministers approved the transformation of the Private Sector Partnership Reinforcement Program (Shareek) into a center named “the Private Sector Partnership Reinforcement Center (Shareek).”

Experts told Asharq Al-Awsat that the measure confirms the Saudi government’s seriousness in modifying the path of partnership with the private sector to achieve economic sustainability.

Shareek aims to increase domestic investments of private sector companies (listed and non-listed companies) to reach SAR 5 ($1.3 billion) trillion by 2030 through the support and unlocking of Government-approved incentives.

The decision to transform Shareek into a center, under the leadership of King Salman bin Abdulaziz and Crown Prince Mohammad bin Salman bin Abdulaziz, reflects the government’s interest in the local private sector and keenness to support and increase its contribution to the national economy, the head of the Federation of Saudi Chambers (FSC) Hassan Al-Huwaizi told Asharq Al-Awsat.

Al-Huwaizi added that the center will have a positive effect on advancing the program’s goals.

The FSC head stressed that the center ushers in a new formula and stage in the partnership between the public and private sectors, in line with the directions and objectives of “Vision 2030.”

The newly created Shareek Center supports the creation of more than 100,000 job opportunities and the promotion of local content by 2030, said Al-Huwaizi.

He affirmed that institutional bodies of the business sector in the Kingdom, represented by the FSC and Chambers of Commerce, will work closely with the Sahreek to enable investment opportunities and boost competitiveness in implementing various projects.

Transforming the Sahreek program into a center will support raising the private sector’s contribution to the GDP and the achievement of the goals of Vision 2030, said Osama Al-Obeidi, advisor and professor of international commercial law at the Institute of Public Administration.

It is a step in the right direction to build the relationship between local companies and public agencies, he added.

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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.