Private sector contribution to Saudi economy rises to 51%: Al-Falih

Khalid Al-Falih, Minister of Investment

The private sector’s contribution to the Saudi economy increased from 40% in 2016 to 51% at present, Minister of Investment Khalid Al-Falih said.

Addressing a meeting with private sector representatives, Al-Falih said the Saudi economy has grown cumulatively by 80% since the launch of Vision 2030, despite global challenges such as the COVID-19 pandemic.

He explained that the current goal is to raise the private sector’s contribution to GDP from SAR 2.3 trillion at present to SAR 2.5 trillion, equivalent to 65%, by 2030.

Al-Falih noted that the target of lifting the investment GDP share to 30% by 2030 was achieved ahead of schedule in 2024 — six years earlier than planned.

He highlighted that while many attribute the surge in investments to trillion-riyal budgets and the Public Investment Fund (PIF) initiatives, the private sector has been the main growth driver. The sector’s size has doubled since 2019, with its share of total investments in the Kingdom rising from 60% to 76%.

Al-Falih also emphasized that investment protection agreements signed with other countries aim to open new markets and eliminate barriers for Saudi corporates that have reached their domestic growth limits and are now looking to expand abroad through exports or international ventures.

He further noted that the number of global companies with regional headquarters in Riyadh is expected to rise from 670 last week to 700 by the end of this year.