For long decades, the Saudi private sector has been an effective partner in the comprehensive development processes seen by the Kingdom through its various eras and stages, underlining a series of accomplishments reflected by several important economic indicators, represented in the sector's high contribution to the gross domestic product, absorption of employment, providing job opportunities, contribution to the growth of the non-oil productive and service sectors, and promotion of exports.
The sector's contribution began "modest and shy" but has now become prosperous with advanced and promising rank.
Recently, the private sector received new support and additional stimulus from the government, by the Ministry of Finance's announcement to disburse all public and private sectors' claims related to payment orders during 2019.
This announcement appeared to carry a "tacit message" from the State to the private sector, that it must be prepared for the requirements for the next stage, and to gather its tools and enhance its capabilities to go on with the development path, under the umbrella of Vision 2030. Such a scene establishes confidence in the institutions and companies of the private sector, which have always been the strong executive arm of the State's projects in all sectors and areas.
The Ministry of Finance's announcement of disbursing 201.1 billion riyals for the private sector, which is equivalent to 98% of the sector’s dues, indicates two things; the State is keen to continue its unlimited support to the private sector by providing it with the necessary liquidity, and that there is a new boom to be soon seen in the national economy, after pumping these amounts of money into its veins, in the form of new projects which are run by the private sector's companies and institutions.
During the reign of Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, the private sector enjoys successive packages of incentives, which started in late 2017, when His Highness, Allah preserve him, approved a total amount of 72 billion riyals to implement the private sector stimulus plan during from 2018 to 2020, in order to enhance its competitiveness, develop its products and improve the business and investment environment.
The private sector is the first to recognize that its accomplishments would not have taken place had it not been for the support delivered by the State and its wise leadership. The private sector's initiatives have been encouraged and supported by the State by providing the necessary infrastructure for the establishment of fruitful productive sectors, seeking to find organizational and institutional frameworks to keep pace with the requirements of the age and adopting comprehensive economic reform policies.
Therefore, it was not surprising for the private sector to register remarkable growth on its own in 2019, exceeding an average of 2.2%, to achieve the highest rate of growth that brings it closer to the government's goal of increasing the sector's contribution to 65% of GDP by 2030.