His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar Al-Khorayef, affirmed that the industrial sector in the Kingdom has become highly attractive to investments, with many local investors in other fields now turning to the industrial sector. He explained that local content is a fundamental part of the Public Investment Fund's (PIF) agenda and receives unlimited attention and support, as evidenced by the Fund's target of achieving 60% local content in its companies by the end of 2025.
This came during the dialogue session "Partnership with the Private Sector: A Strategic Pillar in Shaping the Kingdom's Local Economy," with the participation of His Excellency Mr. Abdulaziz Al-Arifi, CEO of the Shareek Program, and Mr. Yazeed Al-Humaid, Deputy Governor and Head of Investments in the Middle East and North Africa, as part of the PIF-Private Sector Forum held in Riyadh over two days.
His Excellency emphasized the essential role of the private sector in developing local content and stated that the private sector is a key and fundamental partner of the Local Content Authority, on which the Authority relies heavily for the success of its objectives.
He further explained that the number of government tenders in 2022 that met the mandatory list reached 50,000 competitions, and today more than 4,000 national factories benefit from the mandatory list, while the value of competitions to which local content policies apply has exceeded 400 billion since the implementation of the regulations for preferential treatment of local content, local small and medium enterprises, and companies listed on the financial market in business and procurement.
His Excellency Mr. Abdulaziz Al-Arifi, CEO of the Shareek Program, confirmed that the forum will focus on investment opportunities for the private sector, which is a key pillar of the Kingdom's Vision 2030. He explained that the Crown Prince's launch of the Shareek Program aims to have a tangible impact on the private sector's investment landscape in the Kingdom, given the importance of private sector investments in achieving several economic and investment objectives. These include raising the Kingdom's economic ranking to 15th globally and increasing the private sector's contribution to GDP to 65% by 2030.
He added, "In the Kingdom, we are fortunate to have many leading companies, both regionally and globally, that have the capacity and desire to grow in a way that serves their own objectives and national goals alike."
He clarified that the role of the Shareek Program is to provide support and incentives to these companies—which are classified as major corporations—and enable them to reach their full potential for growth within the Kingdom and achieve the 5 trillion riyal target. The program works closely with these companies to study their expansion plans and projects, explore ways to empower them, and provide the necessary support to address challenges that may delay implementation. These projects and coordination with various government entities.
During his speech, Al-Arifi emphasized that after two years since the program's launch and through intensive work with major companies, and with the support of the wise leadership and integrated efforts with government agencies, the program has become a primary choice for these companies in obtaining government support to develop their investments.
He stressed that major companies are defined in the program as those with investment plans exceeding 10 billion Saudi riyals within the Kingdom over 10 years, with an investment rate of at least one billion riyals per year. He explained that supporting major companies to expand, grow, and increase their investments within the Kingdom will open up a larger market for all investors in the Kingdom. Localizing industries, bringing in the technologies required for the Kingdom's economic growth, and raising the efficiency and quality of investment in the Kingdom will open up numerous investment opportunities for companies operating within the value and supply chains of these sectors, particularly small and medium-sized enterprises (SMEs), which contribute to building the necessary infrastructure for these investments.
He added that the Shareek Program is one of the pillars of the government investment system in the Kingdom, and presents itself as an integrated destination to support the growth of major companies in the Kingdom. He emphasized that the program not only provides incentives to large companies but also works intensively to develop and present investment opportunities to them. He affirmed that the program considers two important aspects in this regard: alignment with the Kingdom's sectoral strategies and directions. Therefore, the program relies on these strategies and directions—considered the sectoral roadmap—when developing and proposing investment opportunities. He stressed that it is crucial for the program, when developing investment opportunities, that these investments support the achievement of the national targets set for each sector, thus contributing to the concept of partnership upon which the Partner Program is based.
The other aspect is full integration with the government system. The program has formed sectoral supervisory committees, chaired by the Minister overseeing the sector, which aim to develop investment opportunities in these sectors and present them to major companies investing in each sector. This includes discussing the regulatory framework required to maximize the investments of major companies in the sector.
He explained that one of the most important enablers supporting integration with the government system is the unified local content objectives, which supports coordination and facilitates the development of opportunities. Investment opportunities are being presented to various private sector companies, which will generate promising opportunities for the private sector. He emphasized that representation in developing investment opportunities is very high, and the program places great importance on creating and developing these opportunities as a crucial driver for accelerating the growth of major companies in the Kingdom and the private sector.
He concluded by affirming that there is now significant integration among entities in achieving the Vision's goals and a commitment to placing the private sector at the cornerstone of achieving these goals. He stressed that the Public Investment Fund's efforts in developing opportunities for the private sector are important and contribute to the sector's growth, which will generate economic returns for the Kingdom.
Meanwhile, Deputy Governor and Head of Investments in the Middle East and North Africa, Yazeed Al-Humaid, stated that one of the most important principles of the Public Investment Fund's program is the participation of the private sector in new sectors. He explained that the Kingdom's economy and its rapid growth represent a vast field for everyone, with very large and promising opportunities.
He confirmed that after implementing the Public Investment Fund's strategy and the 13 sectors in which the Fund has invested, the private sector has found numerous opportunities to invest, partner with the Fund, or act as a supplier and service provider, in order to achieve... Supply chains in projects belonging to the Public Investment Fund
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