Interview: Hussein Fares, CEO, Abdulla Fouad Group
How do you see Saudi Arabia’s current infrastructure development contributing to Vision 2030?
HUSSEIN FARES: The pace of infrastructure development in the Kingdom has been remarkable. We have made significant strides across multiple sectors – from transport and logistics, to housing and utilities – all of which are critical to long-term economic diversification and job creation. Urbanisation, particularly in major cities, is driving demand for new housing, public transport systems and smart city solutions. At the same time, industrialisation is highlighting the need for energy-efficient and sustainable infrastructure.
Public-private partnerships will be central to attracting foreign investment and bringing in the expertise required for large-scale developments. In this context, the construction sector can continue to act as a pillar of the economy, both in terms of direct job creation, and as a catalyst for industrial and economic activities.
What steps can local businesses take to enhance their competitiveness in light of the focus on localising industrial supply chains?
FARES: Localisation is key to long-term economic resilience, and initiatives like the National Industrial Development and Logistics Programme are core components in achieving this. For domestic businesses, enhancing competitiveness starts with investing in technology and skills development. The more we automate and adopt advanced manufacturing techniques, the more capable we become of meeting global standards.
International partnerships are crucial to this process. They help to bring in technical know-how and best practices, which in turn can accelerate our localisation efforts. We have seen that strategic alliances with foreign firms often lead to knowledge transfer, which strengthens local capabilities over time. This blend of local expertise and international collaboration can ensure that Saudi industries remain competitive globally, while also backing the wider goals of Vision 2030.
In what ways can the Kingdom maintain its leadership in the oil and gas sector, while also acting to transition to a more sustainable energy mix?
FARES: While Saudi Arabia is set to continue to play a major role in the global oil and gas sector, shifting towards a more sustainable energy mix is also essential. Oil and gas remain central to the global energy supply, but the Kingdom is well placed to support the green transition by funding clean technologies. Keeping its position in the oil and gas sector will require innovation, particularly in reducing emissions.
The Kingdom is also investing in renewables, particularly solar and hydrogen. The challenge lies in ensuring that traditional energy exports remain robust, while also scaling up investment in emerging technologies. This will help meet global demand for cleaner energy and ensure that Saudi Arabia remains a significant player in the global energy landscape.
Which measures could boost investment in segments like digital infrastructure and health care?
FARES: Digital infrastructure and health care are critical sectors underpinning broader economic diversification. Policy measures that create a more enabling environment for private sector participation in these areas are essential to stimulate investment. For example, greater incentives for cloud computing, data centres and 5G infrastructure rollouts can accelerate growth, as these technologies are foundational to sectors like e-commerce and smart cities.
The Covid-19 pandemic has underscored the need for more resilient health care systems and the digitisation of health care services. Policies that encourage the development of telemedicine, health-tech startups and partnerships with global health leaders can attract investment and improve service delivery. It is also important to continue prioritising regulatory reforms that minimise red tape and make it easier for entities to fund projects in these foundational sectors.
Read More from OBG
