Role of private sector
The Saudi government has embarked on numerous financial and structural reforms to support the implementation of the Vision 2030 program. The reforms include a comprehensive assessment of all developmental sectors, especially those directly linked to economic performance indicators. The government is also focusing on its capital investments and looking at ways to reduce operational costs to ensure sustainability of economic development, increase efficiency of government spending, and amplify the positive effects in all sectors.
The government adopts public-private sector partnership as part of its strategy to improve the quality of its performance. This is what the Vision undertakes: “We will further pursue public-private partnerships, continue to facilitate the flow of private investment and improve our competitiveness. We will develop the necessary capabilities to increase the quality and reliability of our services. We will coordinate with legislative authorities to review current regulations with the aim of improving the business environment and enforcing contracts.”
Accordingly, the private sector will spearhead all development endeavors. Therefore, it must undergo numerous transformations, moving from full reliance on the government to self-reliance in undertaking various projects in terms of implementation, finance and management. The private sector must respond more efficiently to the challenges and move steadily towards development and investment in the emerging productive sectors, such as the industrial sector.
Based on submissions made by Crown Prince Mohammed bin Salman, the Deputy Premier and Chairman of the Council of Economic and Development Affairs, the King issued a royal decree calling for prompt solutions to payment of dues to contractors and suppliers. This decree was issued following several resolutions supporting the private sector, including the royal order issued in December to boost the sector with SR 72 billion in the fields of housing finance, exports, and small-and-medium-size enterprises.
An ad hoc committee chaired by the Commerce and Investment Minister has been formed to bring the royal decree into effect. This will reflect positively on all components of the private sector, enhance trust in the sector, ensure continued efficiency, and contribution to the gross domestic product.