Saudi Arabia’s newly launched SAR 27 trillion program Shareek has been warmly welcomed by business leaders, with Nasser Saidi, a Middle East economics expert, explaining that the intention is to “jump start” the Saudi economy in the wake of the recession caused by the Covid-19 pandemic.
Announcing the program, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs, said: ‘Building a vibrant and prosperous private sector is one of the national priorities for the Kingdom and that is why we are today inaugurating a new and more powerful era in terms of cooperation and partnership between the government and private sector. The Shareek program we are announcing will strengthen the partnership with the private sector and has the objective of supporting local companies and enabling them to unlock new local investments valued at SAR 5 trillion through the end of 2030.’
Shareek will facilitate investments of SAR 5 trillion from Saudi private sector businesses by 2030
The Arabic word for ‘partner’, Shareek will facilitate investments of SAR 5 trillion from Saudi private sector businesses by 2030, to be led by Saudi Aramco and SABIC, according to Crown Prince Mohammed bin Salman. This will allow the private sector to create thousands of jobs. Yousef Al Benyan, Chief Executive of SABIC, said the strategy would help it double its capacity. “It will enhance the company’s competitive position on the local, regional and global levels,” he said.
Aramco Chief Executive, Amin Nasser, added: “You can look at Shareek as a catalyst in making Saudi Arabia even more compelling as an investment destination for both local and foreign investors,”
“It will enhance the company’s competitive position on the local, regional and global levels”
“The inauguration of this program is very much aligned to the wider objectives of Vision 2030, including economic diversification and increasing private sector contribution to GDP to 65%. Once implemented, the Shareek program is also likely to play a part in creating additional private sector employment and further business opportunities across the Kingdom,” said Gabriella De La Torre, director of consulting at CBRE.
“It also makes domestic businesses even more invested in successful development and diversification of the Saudi economy as their longer-term returns will be increasingly dependent on this. The Shareek program is well-placed to further support partnerships between public and private entities across a variety of sectors, a collaboration which is critical to delivering the ambitions plans for the country by 2030 and beyond.”