RIYADH — Saudi Arabia’s national privatization strategy is a central pillar of the kingdom’s economic transformation, covering 18 sectors and offering 147 investment opportunities, with a total target amount of SR240 billion, according to economic analysts.
Academic and economic analyst Dr. Bandar Al-Jade said on Saudi television that the strategy is closely aligned with Vision 2030, particularly the goals of economic diversification and improving government spending efficiency.
“The national privatization strategy is working to strengthen government services by increasing spending efficiency and directing spending to areas where it is needed most,” Al-Jade said.
He explained that the strategy is designed to simultaneously achieve the dual objectives of improving the quality of public services while empowering the private sector.
“Empowering the private sector is a strategic goal for the regional economy,” he said, adding that privatization also aims to “improve the quality of government services through competition and private sector participation.”
Al-Jade pointed out that the impact of privatization is expected to be most pronounced in sectors that directly impact daily life, such as education, healthcare, transportation, and sports. In the education sector, he said privatization focuses on infrastructure and operations rather than academic content.
“When we talk about privatizing education, we are talking about building and operating educational facilities,” he said, noting that this has freed up public institutions to focus on curriculum development and learning outcomes.
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A similar model applies to health care, where private sector participation is expected to improve efficiency and service delivery.
“Privatization in health care includes building, operating and managing hospitals, reducing waiting times and improving the quality of services,” Al-Jade said, stressing that the public sector will continue to be an active partner. “Privatization does not mean complete withdrawal from the state.”
Responding to concerns about potential cost increases, Al-Jade said the strategy was not aimed at maximizing profits, noting that pricing and service standards would continue to be regulated.
“Financial sustainability is important, but profit is not the objective,” he said.
He added that the strategy is also expected to support job creation and workforce development, with localization requirements remaining a core element.
In the sports sector, he said private sector involvement is already helping to improve facilities and create new job opportunities, especially as the Kingdom prepares to host major international sporting events.
Al-Jade emphasized that opportunities are open to domestic and international investors, especially those who can bring international expertise that can be transferred to Saudi talent.
