JEDDAH: Public-private partnerships (PPPs) are playing a pivotal role in Saudi Arabia’s economic transformation. They are driving foreign direct investment and fostering sustainable growth, experts say. As the Kingdom moves forward with Vision 2030, these partnerships are becoming a cornerstone of the nation’s development strategy. They help domestic companies expand their reach and learn from global leaders.
Sumit Pathak, CEO of Linus International FZCO, a Dubai-based construction company, emphasized how PPPs have been essential in improving services. These include sectors such as healthcare, education, and infrastructure. He explained that these partnerships create a business-friendly environment that attracts international investors and fosters innovation.
“PPPs push for innovation and efficiency, and as these projects succeed, they inspire further investor confidence,” Pathak said. He highlighted the role of PPPs in diversifying the economy and promoting long-term, sustainable growth.
PPPs are also opening doors for Saudi companies to engage with global players. This includes areas like water, transport, and renewable energy. These partnerships bring in foreign expertise and co-investment, helping local firms compete internationally.
Dr. Jaber Al-Salah, chairman of the academic chapter of the World Association of PPP Units & Professionals, emphasized that these partnerships align with Vision 2030’s goal. This goal is to boost the private sector’s contribution to the country’s GDP from 40% to 65% by 2030.
“PPPs improve public asset efficiency and enhance service coverage while also supporting government objectives,” said Al-Salah. He is also an associate professor at King Abdulaziz University. He added that PPPs contribute to economic growth by promoting citizen participation in government asset ownership and creating employment opportunities.
Examples of successful PPP projects include the expansion of Madinah Airport. This project increased its capacity from 5 million to 8 million passengers. Another example is the Schools Wave 1 project, which built 60 schools in Jeddah and Makkah. These schools serve over 52,000 students. These projects not only address critical infrastructure needs but also demonstrate Saudi Arabia’s ability to manage complex ventures. They also align with Vision 2030’s goals.
Looking ahead, the Kingdom’s National Center for Privatization and PPP has curated a pipeline of 200 projects across 16 sectors, including healthcare, education, and transportation. This initiative further encourages local and international investment. It provides opportunities to engage in Saudi Arabia’s privatization efforts.
Mansoor Ahmed, an expert in PPPs, noted the importance of structuring contracts that balance operational flexibility for businesses with government oversight. He pointed out that PPPs help foster innovation and develop new industries. This aligns with Vision 2030’s focus on economic diversification and reducing reliance on oil revenues.
As Saudi Arabia continues to embrace PPPs, the Kingdom’s strategic legal, financial, and regulatory frameworks ensure that projects remain sustainable. These projects also deliver long-term benefits for the nation’s economy.
