Saudi Arabia is shifting its privatization drive from regulatory setup to execution mode, launching a new National Privatization Strategy to clear a backlog of high-priority assets the government wants off its books by 2030.

The strategy’s new ambitious targets for 2030 include increasing private capital investments to over USD 64 bn, signing more than 220 public-private partnership contracts, and boosting the private sector’s share of GDP to 65%, up from the current 40%. Total net government revenue from projects is expected to exceed USD 7.2 bn.

The launch concludes the privatization program launched in 2018, which saw 200 projects approved with total investments of around USD 213 bn. The program signed 90 contracts for asset sales and public-private partnerships.

Why it matters

Fast-tracking the private sector’s participation in Saudi’s pipeline of projects is a fiscal necessity at this point. With oil prices softening and the Kingdom facing massive commitments for Expo 2030 and the 2034 World Cup, Riyadh needs private capital to bridge the liquidity gap without sacrificing big investment ambitions.

About time: Finance Minister Mohammed Al Jadaan told Reuters at Davos this month that the private sector will take a larger role in Vision 2030 projects, as timelines are being adjusted to avoid overheating the economy. “The private sector is ready now and even more eager to participate,” Al Jadaan said, adding that the government’s role in some projects will shift to “some regulatory support and guidelines.”

IN CONTEXT- A quiet but sweeping review of the Kingdom’s gigaprojects seems to be underway, from Neom — which is reportedly moving away from the linear concept to a hub for AI and data center infrastructure — to the Mukaab project in Riyadh, and more recently, World Cup stadiums. The government has been signaling for some time now that it will prioritize projects with immediate economic returns, including AI, religious tourism, logistics, and mining.

What’s for sale?

Some 147 high-priority prospects were already identified, spanning 18 sectors including communications, defense, education, health, public transport, and more.

  • Transport is high up the list, with projects including the Saudi Land Bridge rail project connecting Riyadh and Jeddah, Qiddiya High-Speed Railway, and Abha International Airport;
  • Social infrastructure: Prince Faisal bin Fahad Sports City and Umm Al Qura University Hospital;
  • Utilities: 13 water reservoirs with a total capacity of 43 mn cbm.
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