Saudi Crown Prince Mohammed bin Salman has launched the "Partner" program aimed at enhancing partnerships with the private sector to boost the contributions of national companies to the sustainable growth of the national economy. The program targets investments reaching 12 trillion riyals by 2030, and it will also support private sector companies in accessing local investments totaling 5 trillion riyals by 2030.
In a television address broadcast on Tuesday evening, the Crown Prince stated that the pillars of the "Partner" program are specifically designed to meet the demands of major national companies and align with their economic objectives for Vision 2030, while supporting the creation of hundreds of thousands of new jobs.
Prince Mohammed bin Salman explained that the total local investments, government spending, and consumption in the Kingdom are expected to reach 27 trillion riyals by 2030. This includes the Saudi Public Investment Fund injecting up to 3 trillion dollars over the next ten years, together with 10 trillion riyals in government spending until 2030, and 4 trillion riyals as part of the national investment strategy, details of which will be announced later.
### Goals and Conditions
The "Partner" program, headquartered in Riyadh and managed by the program's general secretariat, aims to enhance the development and resilience of the Saudi economy through increasing GDP, creating job opportunities, and diversifying the economy. It also seeks to stimulate private sector investments, accumulating a total of 5 trillion riyals by 2030 and adding up to 2 trillion riyals to GDP by 2025. The program will facilitate the acceleration of investment plans for major companies, as noted in a statement from the Saudi Press Agency.
According to the program, each company will receive specific support and benefit from the relevant government assistance that will hasten its investment plans and programs. The comprehensive support will cover various areas, including regulatory, financial, operational matters, asset investment, and cooperation tailored to the specific needs of each major company to achieve its long-term investment aspirations.
To qualify for the program, major companies must demonstrate their ability to invest a minimum of 20 billion riyals over the next decade and have the capacity to invest 400 million riyals in each additional project to acquire the necessary qualifications for support.
The Public Investment Fund will play a leading role in the newly established general secretariat to manage the program, with its governor, Yasser Al-Rumayyan, serving as the chair of the executive committee for major company investments.
The "Partner" program is a cornerstone of Saudi economic development plans. Its performance will be measured based on the successful execution of projects of national importance. The program is expected to empower major companies to increase their investment targets by more than 50% over their current plans.
While there are no specified investment goals for the program due to the unique nature of each major company and its requirements, it has been established to ensure the benefits of ambitious investment strategies are realized much more swiftly than before.
Regarding the final budget for the program and the government entities involved in providing support, the statement indicated that it would depend on the type of incentives required. Initially, several entities are likely to participate in providing incentives, including the Ministry of Finance, the Ministry of Transport, the Ministry of Energy, the Ministry of Commerce, the Ministry of Human Resources and Social Development, the Saudi Customs, the Saudi Industrial Development Fund, the Local Content and Government Procurement Authority, the Capital Market Authority, the Saudi Central Bank, the General Authority of Zakat and Income, the Royal Commission for Jubail and Yanbu, the Ministry of Communications and Information Technology, the Communications and Information Technology Commission, the Ministry of Industry and Mineral Resources, the Ministry of Environment, Water, and Agriculture, the Saudi Authority for Industrial Cities and Technology Zones ("MODON"), the Ministry of Interior, and the Special Economic Cities Authority.
### Direct Financial Support
According to the program's details, any direct financial support for major companies within the "Partner" program will be provided as needed and based on negotiations between the involved parties later on, with loans and grants being available. However, the impact of these incentives on reducing the cost of investment projects executed by major companies may vary depending on the nature of each project.
The support for major companies will be evaluated on a case-by-case basis, taking into account several factors such as job creation, infrastructure development, and the company's investment history. Major companies are also required to implement plans to invest 400 million riyals in each project to qualify for support.
The program offers support through access to assets, operational, organizational, and collaborative support, which are crucial areas of assistance that enable projects to launch earlier compared to current plans. Additionally, the program provides a flexible mechanism that addresses the investment needs of major private sector companies across different economic sectors.
A supervising committee will provide strategic guidance on investments, review project proposals, oversee the required support, and ensure major private companies can collaborate with relevant governmental and ministerial bodies.
### Exclusively for Major Companies
The program is currently available only to large private sector companies whose projects will significantly impact the national economy as a whole. However, speeding up major investment projects will have a broad and positive impact on the private sector and allow companies of all sizes, including small and medium enterprises, to benefit from the new projects being implemented.
While the program is open only to major Saudi companies, its impact will assist global companies in securing opportunities for collaboration with the Saudi private sector and benefiting from new investment opportunities in the future.
The program contributes to business activities by launching major projects that enhance GDP growth and provide ongoing benefits for the economy as a whole. Moreover, by facilitating rapid approvals and offering additional incentives, the program aims to create an investment-friendly environment and improve the ease of doing business in the Kingdom.
The program is overseen by a council comprising various stakeholders from the investment ecosystem, with plans to communicate with 50 major companies listed in the stock market and other private sector firms.
Regarding the provision of different incentives or options, whether for publicly listed or private companies, the benefits and opportunities available depend on the requirement for these companies to demonstrate the capability to invest amounts exceeding 20 billion riyals by 2030 and invest 400 million riyals in each major project to be eligible for program support.
