Saudi Arabia’s Shareek program has announced SR192.4bn ($51bn) in investment for private sector firms.
Launched in the presence of Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Large Companies Investment Committee, the investments are a first phase in Shareek’s planned SR5tn ($1.3tn) program.
The Shareek program, is Saudi Arabia’s dedicated program for large companies, designed to help unlock the full potential of the Kingdom’s private sector, and contribute to achieving the national targets defined by Vision 2030.
Saudi Arabia private sector investment
The program was launched by the Crown Prince on in March 2021 and 28 companies are enrolled in the Shareek program so far.
A signing ceremony attended by senior government ministers and private sector leaders saw 12 projects approved within the Shareek program.
Eight companies will receive funding in a number of strategic sectors. The projects will contribute to the Kingdom’s economic growth, diversify industries, promote innovation, and further enable public-private partnerships.
The Shareek program is helping eligible companies accelerate planned projects and identify new potential partnerships and investment opportunities through government support.
The first wave of supported projects will have strategic impact on several economic sectors in the Kingdom, encompassing investments worth SR192.4bn ($54bn).
SR120.23bn ($32.7bn) will be spent by large companies by the end of 2030, to achieve more than SR466.83bn ($124.4bn) in GDP growth by 2040 and create 64,451 local jobs.
Abdulaziz Al Arifi, CEO of Shareek program, said that the Kingdom’s Vision 2030, led by the Crown Prince, contributes to making the Kingdom a leading destination for investment and growth, with its focus on bolstering partnerships with the private sector as a key catalyst for sustainable economic development.
Furthermore, the Shareek program has become a key choice for large private sector companies, evidenced by the 12 projects enabled by the program across four sectors.
Al Arifi said that the overall value of the investments is around SR192bn ($54bn), including SR120bn ($32.7bn) spent by large companies by the end of 2030 to achieve more than SR466bn ($124.4bn) in GDP growth by 2040, equating to an economic multiplier of 2.43.
Al Arifi said that the projects support the growth of eight national companies and contribute to raising their international competitiveness, in addition to generating a strong ripple effect across entire value chains, which results in great investment opportunities for a wider segment of the private sector.
The broad economic impact is one of the main criteria considered by Shareek when assessing potential projects, Al Arifi added.
The announced projects were:
Aramco will receive support to accelerate implementation of five projects which will create more than ten thousand jobs. The projects include:
- A joint venture steel plate manufacturing project, aiming to make Saudi Arabia 100% self-sufficient for steel plate demand by 2030
- A cloud project which will attract Google Cloud services into the Kingdom and establish Saudi Arabia as a hub for advanced cloud computing technologies
- An engine manufacturing project which will aid in the development of a sustainable maritime sector and unlock greater value from metals and machinery sectors, which are central to diversified industrial development
- A casting and forging project in Ras Al Khair, which will enhance the integration of industrial supply chains in the Kingdom
ACWA Power will receive Shareek support for the construction of the world’s largest green hydrogen plant, which is being developed in partnership with NEOM Green Hydrogen Company and Air Products Qudra. The project demonstrates Saudi Arabia’s capabilities as a green energy leader, in support of the Kingdom’s net zero ambitions.
Saudi Arabian Mining Company (Ma’aden) will receive support to accelerate its Phosphate 3 project in Wa’ad Al Shamal, which is set to position the company as the third largest global producer of phosphate fertilizers by 2029 and enhance the Kingdom’s position in the world’s agricultural value chain, aiding global food security.
SABIC has received support for a catalyst project, primed to reduce Saudi Arabia’s import dependency and enhance its position as an exporter by establishing KSA’s first catalyst manufacturing hub.
Advanced Petrochemical Company will get support to produce methionine, which will contribute to enhancing domestic food security and animal production efficiency.
STC will implement an EMC cable project, strengthening Saudi Arabia’s position as a MENA region digital hub and reliable route for data traffic. Also, Zain will be accelerating a data centre project, set to help transform the Kingdom into a digital economy by ensuring readiness for future IT advancements.
Bahri will scale up its capacity for ammonia transportation through a project supported by Shareek, set to provide ammonia transport services for the first time in the Kingdom, reducing international vessel dependency and enhancing local content in the logistics sector.
Shareek aims to unlock SR5tn ($1.3tn) in domestic private sector investments by 2030 and contribute to the goals set out in Vision 2030, which target an increase in private sector GDP contribution to 65% and an increase non-oil exports from 16% to 50%.
Shareek is implemented with the support of several sectorial supervisory committees led by senior government officials. The projects announced at the event represent the first wave of supported projects. Many more are expected to be supported, and these will be announced in due course.
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