RIYADH: Saudi Arabia can expect a boost in private investments from prominent Chinese investors following a recent agreement between the government’s privatization arm and a top bank based in Beijing.
The National Center for Privatization and PPP signed a collaboration agreement with the Industrial and Commercial Bank of China, the largest bank in the world with total assets of $5 trillion, 8 million corporate clients and 650 million retail customers.
The Kingdom’s privatization authority will leverage the extensive client base of the bank to woo investors keen on investing in the growth story of the Saudi private sector.
The agreement will also facilitate market surveys, financial advisory services, and local and international events to engage with clients and potential investors eyeing opportunities in the Saudi private sector.
The deal was signed by Hani Al-Saigh, NCP’s vice president for strategic marketing and knowledge management, and ICBC General Manager Jing Lin Gu.
NCP CEO Mohannad bin Basodan and ICBC chairman Chen Siqing attended the signing ceremony.
Basodan emphasized that the bank’s support will significantly bolster NCP’s role in strengthening public-private partnerships, as such institutions play a pivotal role in the success of privatization in the Kingdom.
He highlighted that this agreement marks the sixth collaboration signed with local and international banks to identify potential investors interested in NCP’s privatization opportunities.
NCP recently announced the launch of its privatization and PPP pipeline, comprising 200 approved projects across 17 sectors, which aligns with the goals of Vision 2030 to increase the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030.
The current pipeline includes over $50 billion in investments, with an additional 300 projects under evaluation, indicating further growth potential.
Privatization is pivotal in Saudi Arabia’s Vision 2030 strategy, showcasing remarkable progress with the successful privatization of 30 projects over the past five years. This approach has also created significant opportunities for domestic and international investors to actively engage in the Kingdom’s flourishing economic sectors.
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