The importance of government partnership with the private sector

The importance of government partnership with the private sector


In recent years, the Public Investment Fund has played very important roles, by strengthening and developing the partnership with the private sector, which aims to increase the private sector’s contribution to the gross domestic product to 65%, and raise the percentage of non-oil exports from 16% to 50% by 2030, and it has accelerated. Steps for greater partnership between the Public Investment Fund and the private sector, following the launch of the “Partner” program by the Crown Prince and Prime Minister on March 30, 2021, which represents one of the most important executive programs for the Kingdom’s Vision 2030, and the total number of companies included in the program reaches 28 companies from The private sector, with the aim of supporting the diversification of the national economy through its economic resources, reducing dependence on oil, and increasing the development of private sector investments to reach the level of five trillion riyals by 2030.
finally; The Public Investment Fund and the Private Sector revealed an increase in direct investments from the private sector between the beginning of 2021 and the end of the third quarter of 2023 to more than 96 billion riyals, and it launched, in partnership with the National Infrastructure Fund, the Contractors’ Financing Program, which constitutes an initiative aimed at strengthening the construction sector. Locally, by providing diverse and specialized financing solutions to contracting companies, and that the new program works to develop an effective, integrated and transparent business environment in the sector, in addition to presenting projects designed in a way that enhances the financial flows of contracting companies, thus addressing one of the most prominent challenges that the contracting sector faces in most cases. Economies, in a way that contributes to enhancing their financial stability, pushing them towards fulfilling their development projects without faltering or delaying, and increasing their contribution to the gross domestic product.
The partnership between the government and the private sector has taken new and innovative patterns under the umbrella of the Kingdom’s Vision 2030, instead of the previous relationship in its contractual form over the past decades, which remained hostage to the volume of public finance spending on capital projects, and in turn is affected by the levels of global oil prices, in addition to other challenges associated with the delay in implementing those. Projects for many reasons, which the current programs have worked to address from the roots, within the current innovative programs to develop the partnership between the government and the private sector, will in turn lead to the opening of more channels to increase the private sector’s contribution to the gross domestic product, and enhance its investment and financial capacity as a basic pillar, and Then, it strengthened its ability to generate jobs, the first result of which was the establishment of the fund from the beginning of 2017 to date for about 93 companies, the presence of which contributed to the generation of more than 644 thousand direct and indirect jobs in various promising strategic sectors.
The strategic importance of stimulating the private sector and increasing its contribution to the gross domestic product, and overcoming all obstacles that may obstruct its growth and expansion of activities, comes from it being the productive sector of the national economy, which many rely on in terms of diversifying the production base and generating many local investment opportunities for wealth. Local and foreign investments, which will contribute in its entirety to generating hundreds of thousands of job opportunities for national human resources, and improving income levels for members of society, which in turn will lead to supporting the rest of the initiatives and executive programs of the Kingdom’s Vision 2030, which is the most important strategic goal that requires the concerted efforts of all parties. Parties (government, private sector, society) in order to translate it into reality.
In conclusion; The private sector constitutes a fundamental pillar of the national economy, the most important source for achieving sustainable growth and the broadest scope for seizing investment opportunities, in addition to being the largest sector for generating jobs and improving income levels, which in general confirms the strategic importance of this productive sector, and also emphasizes the importance of government partnership with its activities. Different and diverse.

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