Municipal sector profitable; 40% of services privatized: Al-Hogail

The municipal sector is profitable and attractive to investors, while efforts are underway to enhance service quality and spending efficiency, said Saudi Minister of Municipal, Rural Affairs and Housing Majed Al-Hogail.

A total of 29 services delivered in major cities were identified, of which 21 are eligible for privatization, he said at the panel during the PIF Private Sector Forum 2026.

To date, 12 services, or around 40% of the 70% privatization target, have been achieved.

The number of investors registered on the “Furas” platform exceeded 180,000, with contracts of varying sizes, Al-Hogail said. Efforts are underway to convert large contracts into strategic partnerships to improve service quality and spending efficiency.

The ministry is working with the private sector to develop municipal assets, including facilities, as more than 190 park contracts were signed in 2025, totaling nearly SAR 1 billion, underscoring the growing diversity of partnership models in the municipal sector.

Al-Hogail expects direct, non-development investment opportunities in the municipal sector to exceed SAR 130 billion by 2030, and more than SAR 250 billion in the housing sector through the privatization of several projects. These include contracts worth more than SAR 11 billion with engineering supervision offices, over SAR 5 billion in the marketing sector, more than SAR 5 billion for engineering offices, and in excess of SAR 220 billion allocated to the contracting sector.

Boosting investment attractiveness aims to enable investors to conduct business in cities with greater transparency and clarity, while safeguarding the rights of all, the minister said. He added that the municipal sector oversees more than 7 million workers and around 970,000 establishments, while regulating more than 2,450 professions.

Al-Hogail highlighted the importance of data management and its accessibility to the private sector, noting that work is underway to further develop this area given its future added value.

He also confirmed that the housing sector has been fully privatized across development, value chain, financing, and digitalization, supporting sector growth and achieving Saudi Vision 2030 targets.