24 Feb 2025
JEDDAH: Public-private partnerships in Saudi Arabia are enabling domestic companies to learn from the world’s best, while also showcasing what the Kingdom has to offer, experts have told Arab News.
As Saudi Arabia pushes forward with its Vision 2030, PPPs are becoming a cornerstone of the Kingdom’s economic transformation.
These arrangements offer Saudi companies the chance to expand beyond national borders and engage with global markets.
Sumit Pathak, CEO at Linus International FZCO, a Dubai-headquartered construction company, said that PPPs are playing a huge role in transforming Saudi Arabia’s economy, leading to more foreign direct investment and fostering sustainable economic growth,
“By involving private companies in areas like health care, education, and infrastructure, the government is not just improving services but also creating a business-friendly environment that is really appealing to international investors,” Pathak told Arab News.
Privatization efforts such as leasing oil pipelines brought in billions of riyals, which shows how attractive these projects can be, he added.
“What is great is that PPPs do not just inject money into the system — they push for innovation and efficiency. As these partnerships succeed, they inspire confidence in other investors, which helps diversify the economy and make growth sustainable,” the CEO said.
Pathak emphasized that these partnerships open many doors for local companies to engage with global players and explore new business opportunities in foreign markets.
“By working on joint projects with international firms, especially in areas like water, transport, and renewable energy, Saudi companies can learn global best practices and get access to international networks. It is not just about building something locally; it is about becoming part of a bigger ecosystem,” he said.
He concluded that these partnerships often bring in foreign expertise and co-investment, which helps local firms compete on a larger scale.
“Some infrastructure and energy projects here are already creating opportunities for local businesses to expand regionally and even globally. PPPs give Saudi companies a chance to collaborate internationally and step onto the global stage.” he said.
Speaking to Arab News, Jaber Al-Salah, chairman of the academic chapter and member of the steering committee of the World Association of PPP Units & Professionals, explained how the deals align with the Vision 2030 drive to boost the private sector’s contribution to gross domestic product from 40 percent to 65 percent by the end of the decade.
“PPPs offer several benefits to the private party, making them an attractive option for collaboration. These partnerships also support government objectives by improving public asset efficiency, enhancing service coverage; quality and rationalizing spending,” he said.
Al-Salah, who is also an associate professor at King Abdulaziz University, added that PPPs encourage private investment in economically viable projects that align with the Kingdom’s developmental goals, fostering competitiveness and economic growth.
“Additionally, these partnerships promote citizen participation in government asset ownership, create employment opportunities, and optimize the use of the national workforce, driving sustainable development across key sectors,” he said.
Al-Salah said that the Kingdom has seen remarkable success with PPPs, which have helped address critical infrastructure needs.