RIYADH: Saudi Arabia is looking to secure SR9 trillion ($2.39 trillion) in investments from the private sector, following a SR3 trillion kick-start from the Public Investment Fund, according to a top official.

Speaking in a fireside chat at the PIF Private Sector 2025 in Riyadh, Saudi Minister of Economy and Planning Faisal Al-Ibrahim set out how the Kingdom’s sovereign wealth fund is playing a catalytic role in igniting private sector participation.

Saudi Arabia has set out an ambitious National Investment Strategy as part of its Vision 2030 economic diversification initiative, and Al-Ibrahim explained how PIF has a “big role” in setting an example for how government-backed projects can partner with the private sector.

He added: “If you look at infrastructure mode, we expect the total required investment of the next seven to 10 years to be around $1 trillion, so PIF can’t do this on its own.

“It will kick start, it will ignite, and it will set the example, set the tone, that will create a private sector that’s more dynamic, a stronger partner that can help us achieve this.”

Al-Ibrahim discussed the role of the private sector in the Kingdom’s economic transformation, emphasizing that it should not become overly reliant on incentives but instead focus on its own capabilities.

“Today, the private sector is demanding longer-term plan, longer-term clarity in terms of what the government needs, clarity on what the objectives are for the economic transformation,” he said, adding: “This is because they want to pivot and address these needs, and they want to develop the right capabilities for their institutions to capture these opportunities sustainably at the same time. Incentives today, driven by the by the government, are laser-focused on objectives.”

Al-Ibrahim provided examples from the healthcare sector to illustrate how Saudi companies and professionals have successfully expanded their expertise globally without direct incentives.

This includes local doctors and nurses that have gained international recognition, an entire Saudi team recently conducting a groundbreaking robotic heart transplant, and Habib Healthcare successfully exporting its hospital information system to the UK’s National Health Service.

Al-Ibrahim emphasized that Saudi Arabia’s economic transformation should be driven by the private sector, with the government offering strategic support when needed but avoiding excessive reliance on incentives.

“We need to continue relying on what the private sector can do on its own. The private sector is more effective, more efficient, (it) can innovate and wants to play a bigger role in this economic objective,” he said.

The minister underlined Saudi Arabia’s economic transformation efforts, mainly focusing on the private sector’s contribution to the Kingdom’s gross domestic product.

“Before Vision 2030, we were below 40 percent. Today, we’re at 46 percent. 65 percent includes PIF. What we care about also is not just achieving 65 percent but achieving the portion of the 65 percent that represents the non-government influenced private sector,” Al-Ibrahim stated.

He also referred to the Riyadh Bank Purchasing Managers’ Index, published earlier this month, as it exceeded 60 basis points, marking the first time in a decade that such strong growth has been observed.

“At this time, there is a lot of promise, but the last year, non-oil growth achieved was 4.2, 4.3 percent higher than our expectation of 3.7, 3.9 between the budget announcement in the Ministry of Economy and Planning,” the minister said.

He continued: “Next year, we projected to grow over in 2025 at 4.8 percent. In 2026, we are projected to grow at 6.2 percent. We can’t deny the fact that a big part of this is the sectors that were created that are not long lead items. What we want to see there is more private sector-led growth.”

Al-Ibrahim stressed that the Kingdom wants to see the private sector leading growth, which will then help Saudi Arabia develop its non-oil export portfolio.

“These are long lead items. We need to be patient, but we’re often optimistic,” he concluded.