Date: March 14, 2023

The Public Investment Fund of Saudi Arabia launched new efforts to encourage the growth of the private sector. The plan will improve investment opportunities for the private sector, support employee upskilling and development, and support the local business community. According to Jerry Todd, head of PIF’s National Development Division, “the private sector’s empowerment is one of PIF’s foremost goals considering the private sector’s major contribution to the growth and development of the Saudi economy.”

These are the three initiatives:

1. The Local Content Growth Program, or “Musahama,” intends to raise the percentage of domestic spending on local content to 60% by the end of 2025. Each PIF firm will include local content concerns into their design choices and procurement practices as part of this strategy.

2. Suppliers Development Program: This will assist local vendors and suppliers in strengthening their capabilities to fulfill the expanding needs of PIF’s portfolio firms. This year, PIF will host vendor boot camps for the contracting industry as part of this plan to aid Tier 2 and Tier 3 contractors in getting their businesses ready to become vendors.

3. The Private Sector Hub will provide as a special route for informing the private sector about supplier and investment possibilities. The hub is now operational, offers more than 100 possibilities, and will be improved and updated over time.

“We have made significant progress in our efforts to promote the expansion of local content in the Kingdom with the introduction of our Musahama Local Content Program and Supplier Development Program. Both of these initiatives will make sure that PIF and its portfolio companies incorporate local content considerations into their activities and operations, directly promoting the growth of local industries and fostering long-term supplier and vendor partnerships, which will strengthen local capabilities, boost local players’ competitiveness, increase supply chain resilience, and foster innovation in the Saudi economy said Todd

The forum and the three new initiatives are consistent with PIF’s goals to support the private sector’s up to 65 percent GDP growth by 2030, create job opportunities, localize technology, and promote the transfer of technology and knowledge to Saudi Arabia by increasing its contribution to local content to 60 percent by 2025.

Source: Gulf News