Privatisation in the Gulf: the key to both recovery and diversification?

Privatisation in the Gulf: the key to both recovery and diversification?

With Saudi Arabia announcing plans to raise $55bn through its privatisation programme, other Gulf countries are similarly stepping up efforts to stimulate private investment in public assets and projects, with a view to strengthening state finances, spurring diversification and driving their respective Covid-19 recoveries.

In March this year Saudi Arabia's Council of Ministers approved the long-awaited Private Sector Participation Law, which aims to increase both the privatisation of public sector assets and private sector participation in infrastructure projects.

The law will enter into force in July. Targeting 16 sectors, it will advance one of the core goals of the Kingdom's Vision 2030 economic development plan, namely an increase in the private sector's contribution to GDP, from 40% to 65%.