PIF’s role in empowering the private sector: Joint aspiration for a thriving economy

Empowering the private sector and increasing its contribution to the GDP constitutes a fundamental pillar in achieving sustainable economic development, creating more job opportunities, and becoming the main engine of economic growth. We see this through the constant affirmations of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of PIF, therefore, it is of the most important elements of PIF’s business model in achieving its goals in line with Saudi Vision 2030 through providing the private sector a stimulating investment environment.
Saudi Vision 2030 focuses on the role of the private sector in its second pillar of achieving a thriving economy. In recent years we have witnessed a great growth that resulted from many programs and initiatives that PIF initiated to create an ideal business environment for the private sector. Whether at the individual level, through small and medium enterprises, all the way to large companies, PIF is encouraging the private sector to invest in promising sectors and expand partnerships with PIF projects and those of portfolio companies.
PIF’s programs and initiatives support and develop private sector businesses. And their impact is clearly reflected in the increase in the number of local and international investors wanting to invest in Saudi Arabia, strengthening the national economy. There are several examples of successful PIF programs and initiatives, most notably the Private Sector Forum, which will hold its third edition on February 12-13, 2025. As PIF continues its journey in empowering the private sector, the forum links PIF, its portfolio companies and the private sector, and aims to both promote localization and support the development of supply chains in strategic sectors in Saudi Arabia.
The 2023 and 2024 editions of the Private Sector Forum provided the private sector with opportunities to cooperate with PIF and its portfolio companies. PIF is continuing to empower the private sector through solutions that allow suppliers to be linked directly to PIF portfolio companies, and which involve investors in unlocking the capabilities of strategic sectors in Saudi Arabia. The forum has witnessed remarkable growth in the number of participants from 4,000 participants in 2023 to 9,000 participants in 2024, and an increase in the number of portfolio company booths from 50 in 2023 to 83 in 2024. The forums also saw the signing of a number of agreements and memorandums of understanding worth a total of SAR 17 billion.
PIF aims to raise the percentage of local content in its portfolio to 60% by the end of 2025. The Local Content Development Program MUSAHAMA, was launched during the first Private Sector Forum. As a result, a total of 46 PIF portfolio companies had developed special programs for local content by the end of 2024, an increase of 70% from 2023.
PIF’s Private Sector Hub also provides a wide range of investment opportunities for the private sector, and there are currently more than 2,000 investors registered on the platform. The platform includes supplier registration systems for approximately 85% of PIF’s portfolio companies to provide unified access to suppliers.
The hub has succeeded in transforming ambitious ideas into tangible reality, achieving positive results in empowering private sector companies and stimulating the development of competitive and innovative local industries. One example is the German crane manufacturer WOLFFKRAN, which was able to explore opportunities with Al-Zamil Group through the Private Sector Hub, with the aim of opening a crane production facility in Saudi Arabia and building a fleet of 300 cranes for rent to meet the demand of the construction and real estate sectors. The hub also supported the efforts of Hassan Allam Holding Company, which has established a regional headquarters in Saudi Arabia. The company currently employs 3,600 employees in 15 projects across Saudi Arabia.
The Contractor Financing Program has also contributed to the launch of new surety bonds, the first insurance product of its kind in Saudi Arbia and the region, in cooperation with the Insurance Authority and the Saudi insurance sector. The product enables contractors participating in PIF real estate projects to fulfill their contractual obligations by providing project guarantees through the insurance sector. This enhances the local market’s ability to issue project guarantees, which have amounted to SAR 10 billion. The Saudi Reinsurance Company and Walaa Cooperative Insurance Company have played a pivotal role in achieving this success.
In 2024, PIF launched the Accelerated Manufacturing Program to enable emerging industrial companies to develop competitive and innovative products and services and grow their businesses. In total, 13 local manufacturing companies were selected to participate in 150 hours of training on strategies, excellence and sustainability for operation and sales, in cooperation with 17 PIF portfolio companies including ROSHN, NEOM, Red Sea Global, Qiddiya, Ma’aden and SIRC.
To ensure the localization of knowledge and technology and the provision of highly skilled job opportunities, PIF launched the National Academy for Automobiles and Vehicles (NAVA) in 2024, in cooperation with the Ministry of Industry and Mineral Resources, as well as the car companies Lucid and Ceer. The scheme empowers Saudi young people by equipping them with the technical skills that allow them to join the vehicle manufacturing and mobility workforce. The Academy succeeded in including 200 students in its training programs, ensuring that they will have job opportunities with Lucid and Ceer.
These positive results are testament to the effectiveness of PIF’s strategy to achieve the goals of Saudi Vision 2030. PIF plays a major role in building a thriving economy and supporting the aim to increase the private sector’s contribution to GDP to 65% by 2030. PIF continues to empower the private sector as a pivotal element of achieving economic diversification and sustainable development. The private sector is an essential partner in the success of PIF’s projects and investments, and of PIF’s drive to fulfil the aims of Saudi Vision 2030.