Non-governmental private sector investments in Saudi Arabia’s GDP for the past year increased 22 percent to reach $242 billion. Compared to 2016, investments witnessed a considerable jump, reaching 104 percent, despite the impact of the coronavirus pandemic on economic activities worldwide.
The Saudi government is seeking to empower the private sector and raise its contribution to the gross domestic product from 40 to 65 percent as a target for 2030.
Saudi Arabia inaugurated the Private Sector Partnership Reinforcement Program (Shareek) to strengthen government and private sector collaboration, which he said would enable private investment of $1.33 trillion until 2030.
Job creation
According to a recent report by the Ministry of Investment, a copy of which was seen by Asharq Al-Awsat, the impact of the methodology of structural and economic reforms since the launch of Vision 2030 is visible through the growth of the non-oil private sector in recent years as part of the country's plan to reduce its dependence on oil.
The report revealed that the number of Saudi workers in the private sector increased by 58 percent during the fourth quarter of last year, while that rate reached 42 percent in the government sector.
It stressed the importance of supporting and enabling the private sector to operate within its maximum potential, which will reflect on the Saudi economy and generate job opportunities, thereby reducing unemployment and achieving social and economic well-being.
Shareek Program
In the presence of Crown Prince Mohammad bin Salman bin Abdulaziz, Saudi Arabia had announced in March the first wave of projects supported by the Shareek program, designed to help unlock the full potential of Saudi Arabia's private sector and contribute to achieving the national targets defined by Vision 2030."
The Crown Prince is also the Chairman of the Large Companies Investment Committee.
The ceremony witnessed the signing of several agreements for 12 projects that will be implemented by eight companies in several strategic and vital sectors.
The projects will boost the economic growth of Saudi Arabia, localizing industries, stimulating innovation, and strengthening the partnership between the government and private sectors.
First package of projects
Shareek CEO Abdulaziz al-Arifi said the total value of the projects announced during the ceremony are worth to about $51.2 billion.
The share of major companies' investments represents $32 billion, and its impact on the domestic product will reach around $124.2 billion over the next two decades, said Arifi.
He added that the projects will develop the growth of eight national companies and help to raising their competitive potential at the international level.
They will also help create a high positive impact across entire value chains, which provides excellent investment opportunities for a more significant segment of companies in the private sector.
Large businesses
The first package of supported projects will have an economic and strategic impact on several economic sectors in the country and provide 64,400 new job opportunities.
Large companies are a significant driver of economies around the world. Their investment growth affects the economic activity of the investment system in general and contributes to supporting projects that increase the value of investments and diversification of portfolios.
