Saudi Arabia Enters New Phase of Economic Reform with Privatization Strategy
Saudi Arabia has formally transitioned into a significant new stage of its economic reform agenda. The government has commenced the implementation of the National Privatization Strategy following its approval by the Cabinet. This strategic shift underscores a clear emphasis on execution, with the primary goals of enhancing infrastructure quality, upgrading public services, and expanding private sector participation in crucial economic areas.
Framework for Public-Private Partnerships
The National Privatization Strategy serves as the government's comprehensive framework for engaging private companies in the development, operation, and management of selected public services and infrastructure. This is achieved through public-private partnerships, while the state maintains its legislative, supervisory, and regulatory authority. The approach is meticulously designed to increase efficiency, improve service quality, and support long-term fiscal sustainability for the Kingdom.
Alignment with Vision 2030 Goals
Finance Minister Mohammed Al-Jadaan, who also chairs the board of the National Centre for Privatization and PPP, confirmed that the strategy was approved by the Cabinet on November 25, 2025. He described it as a central pillar of Saudi Vision 2030, aimed at elevating service efficiency, deepening public-private partnerships, and bolstering the Kingdom's long-term fiscal health. Speaking about the rollout, Al-Jadaan emphasized that Saudi Arabia is working diligently to build future-ready infrastructure that delivers world-class public services to citizens, residents, and visitors. This initiative also positions Saudi Arabia as a global benchmark for public-private partnership models.
The strategy targets 18 priority sectors and seeks to improve satisfaction levels with public services nationwide. Additionally, it aims to create tens of thousands of specialized, high-quality jobs as private sector participation expands. By the end of the decade, the government has set ambitious targets, including more than 220 signed public-private partnership contracts by 2030 and over SR240 billion in private sector capital investment by 2030.
Transition from Programme to Execution Phase
Al-Jadaan confirmed that the Council of Economic and Development Affairs has approved the conclusion of the Privatization Program, marking the completion of its original mandate. Launched in 2018, this program laid the essential groundwork for the Kingdom's privatization drive. Key achievements included the establishment of the National Center for Privatization, the development of more than 200 approved projects, and total investments estimated at SR800 billion, equivalent to approximately $213 billion.
During this period, nearly 90 contracts were signed, covering asset transfers and public-private partnership agreements across multiple sectors. The program also strengthened the private sector's role in the economy, improved the operational efficiency of government assets, and helped develop a legislative and regulatory environment supportive of investment, economic diversification, and competitiveness. With these objectives successfully met, the National Privatization Strategy now replaces the program's foundation phase with a sharper focus on delivery and impact.
Core Programmes and Investment Opportunities
To drive implementation, the National Privatization Strategy is built around five core programmes supported by 42 executive initiatives. Together, they are designed to strengthen the privatization ecosystem and deliver Vision 2030 targets. A key element of the strategy is a structured implementation framework to identify and prioritize privatization opportunities. Through this process, more than 145 high-priority investment opportunities have already been identified, offering what officials describe as attractive prospects for private sector participation.
In addition to mobilizing capital, the strategy is intended to allow the government to concentrate more fully on its legislative, supervisory, and regulatory roles, while the private sector takes a larger role in service delivery and infrastructure development.
Accelerating Economic Impact
The launch of the National Privatization Strategy formally marks Saudi Arabia's transition from planning to execution. Officials state that the focus is now on accelerating delivery, scaling partnerships, and translating earlier groundwork into tangible improvements in infrastructure, services, and job creation. With Cabinet backing secured and targets clearly defined, the strategy represents the next stage in reshaping the Kingdom's economic model, with privatization positioned as a key driver of growth, efficiency, and long-term sustainability.
