Saudi's National Privatization Strategy: Unlocking $64B In Opportunities

For Saudi Arabia, boosting the private sector role in the economy is not a short-term enabler but a long-term strategic objective.

Since Vision 2030 was put into action, the Saudi government has clearly positioned privatization as a cornerstone of its economic transformation agenda. This is not merely an aspirational goal—it is already a measurable reality. The private sector’s contribution to the Saudi economy has risen from 40% in 2016 to 51% today.

This trajectory reflects what the Kingdom was preparing for when it announced the National Privatization Strategy (NPS) in January, a central pillar in accelerating large-scale project execution under Vision 2030. Complementing these efforts, the Kingdom has recently introduced new reforms allowing foreigners to invest directly in its stock markets to boost liquidity.

Through this initiative, Saudi aims to shore up its private economy, strengthen manufacturing value chains, and deepen foreign investment inflows in support of its modernization goals.

What Is the National Privatization Strategy?

Building on the successful completion of the 2018 Privatization Program—which facilitated more than SR800 billion ($213 billion) in investments across over 200 approved projects—the Kingdom launched a new, execution-focused framework.

Approved by the Council of Ministers in November 2025, the strategy marks a decisive shift from foundational planning to accelerated delivery, opening significant opportunities for global companies seeking to establish or set up operations in Saudi Arabia.

The strategy sets clear and measurable targets: mobilizing more than SR240 billion ($64 billion) in private capital by 2030, signing over 220 public-private partnership (PPP) contracts, creating tens of thousands of specialized jobs, and improving public service quality across 18 priority sectors.

Key Structural Shifts

The National Privatization Strategy introduces several structural reforms designed to expand the scale and scope of private-sector participation:

• Expanded Sectoral Coverage: The framework opens investment opportunities across 18 sectors, including Environment, Water & Agriculture; Transport & Logistics; Health; Education; Defense; Hajj & Umrah; Information Technology & Communications; Sports; Energy; Media; Finance; Interior; Royal Commission for Riyadh City; Royal Commission for AlUla; Zakat Tax & Customs; Municipalities & Housing; Industry & Mineral Resources; and Human Resources & Social Development.

• Cross-sector Project Pipeline: The strategy has identified 145 high-priority investment opportunities, offering compelling investment prospects for the private sector.

• Structured Implementation Framework: It includes five core programs to empower private sector companies, supported by 42 executive initiatives.

Early Market Effects of National Privatization Strategy

The successful implementation of the National Privatization Strategy requires a strengthened regulatory role to ensure effective execution across all stages of the strategy. In the near term, the market can anticipate a series of enabling measures designed to improve ease of doing business and speed the route to market.

With the strategy targeting 18 priority sectors, the government is expected to deploy tailored, sector-specific incentives, subsidies, and support frameworks, further enhancing the country’s attractiveness as a global destination for business expansion.

Notably, upgrading public-sector services is a central objective of the strategy. This commitment is backed by the Kingdom’s push for digital transformation to enable efficient delivery of citizen-centric services, cementing Saudi Arabia’s status as a premier regional digital hub.

In doing so, the Kingdom is opening its doors to the private sector. This shift creates dedicated entry points for global companies with specialized capabilities and fosters a healthier competitive environment, supported by ongoing structural upgrades and industrial expansion.

Enhancing the nation’s infrastructure remains a focal point of the privatization agenda. Saudi Arabia is already committing up to $1 trillion in infrastructure by 2030, transforming transport, logistics, energy, and urban development. With specific projects already identified, the strategy is triggering a new wave of bids and tenders across critical sectors, expanding opportunities for private participation in infrastructure (PPI).

Operationally, the newly launched strategy sets a new benchmark for urban infrastructure growth, digital resilience, and environmental sustainability—laying the foundation for scalable, future-ready economic development.

Public-Private Partnerships as a Driver of Sustained Growth Across Priority Sectors

Beyond near-term impact, the National Privatization Strategy positions Saudi Arabia as a priority destination for international companies pursuing long-term infrastructure and service-sector investments in the Middle East.

Importantly, it places particular emphasis on accelerating commercialization through public-private partnerships (PPPs) across the Kingdom’s priority sectors, enabling the mobilization of private capital, operational expertise, and innovation. Via the new strategy, the Kingdom is institutionalizing PPPs more systematically, strengthening how these models are structured and governed.

As Saudi transitions from strategy formulation to execution, the coming years are expected to see an acceleration in contract awards, project launches, and the formation of partnerships and joint ventures across Vision 2030’s key industries.

This evolution supports joint investment models that align government ambitions with private-sector efficiency, reinforcing the role of PPPs as a primary entry point into the Saudi market.

As the Saudi market grows increasingly competitive and selective, future growth will belong to those who look beyond short-term returns and commit to long-term operational and economic impact.

To fully capture the benefits of this shift, foreign companies must prioritize high-value creation and deeper integration into the local economy. Success requires establishing early traction, navigating the market’s unique regulatory and cultural nuances, and building a robust local market presence rooted in strategic networking and relationship building.