On how the private sector contributes to diversification efforts and wider financial growth
What will define the private sector’s contribution to the Kingdom’s long-term economic transformation as Saudi Arabia enters the final phase of Vision 2030?
SULTAN BIN MUHAMMAD AL MUSALLAM: The first phases of Vision 2030 were largely about creating the right foundations for economic transformation through structural reforms, investment and the development of new industries. Looking ahead, the private sector will play an increasingly central role in driving sustainable growth, supported by the government’s continued role as an enabler and catalyst for economic development.
Success will ultimately be measured by the private sector’s ability to build globally competitive industries, increase non-oil exports and attract higher levels of foreign direct investment (FDI). While sectors such as tourism, culture and entertainment have made significant contributions to non-oil GDP, manufacturing still has considerable room for growth.
Priority industries identified under the National Industrial Strategy including automotive, aviation, machinery and advanced manufacturing must therefore focus on expanding productive capacity, attracting international manufacturers through direct investment and joint ventures, and developing products that can compete successfully in international markets.
Which factors will be most important in strengthening Saudi Arabia’s attractiveness as a destination for international investment and industrial partnerships?
AL MUSALLAM: Investment incentives remain important, but increasingly the investor experience itself will determine competitiveness. International companies need a clear, efficient pathway from deciding to enter the Saudi market to establishing operations. There is an opportunity to further streamline the investor journey and strengthen coordination across different touchpoints.
To address this, the Federation of Saudi Chambers is working on tools to streamline the investor journey and provide more targeted, sector-specific guidance, in coordination with the government entities responsible for investor services.
At the same time, business councils are being aligned around measurable objectives, including increasing Saudi exports, attracting FDI and strengthening bilateral trade.
Successful bilateral partnerships demonstrate how focused, well-governed councils can generate new investment, facilitate technology partnerships and accelerate joint ventures in strategic industries.
How can small and medium-sized enterprises (SMEs) contribute more effectively to the country’s next stage of growth?
AL MUSALLAM: SMEs account for the overwhelming majority of the business community and will remain central to diversification, innovation and job creation. However, micro-enterprises face different challenges from larger SMEs, and many existing regulations are not sufficiently adapted to businesses employing only a handful of people.
Recognizing this, the Federation of Saudi Chambers is working to build a clearer evidence base on the specific needs of micro-enterprises, so that policy recommendations to government are grounded in data rather than assumption.
Efforts are also under way to close the working-capital gap SMEs face when entering large project supply chains, increase transparency around priority lending sectors, and strengthen collaboration with institutions supporting entrepreneurship, enabling SMEs to participate more actively in emerging industries and national development projects.
In what ways can public-private collaboration sustain competitiveness in the context of Saudi Arabia’s economic reform?
AL MUSALLAM: Saudi Arabia has introduced close to 1,000 economic reforms over the past decade, creating a highly dynamic regulatory environment.
Moving forwards, maintaining competitiveness will depend less on the quantity of reforms than on continuously improving their quality and responsiveness to market realities. The Federation of Saudi Chambers’ role is to ensure that private sector feedback is structured, representative and supported by robust evidence rather than individual opinions.
Through the Federation’s National Economic Policy Lab, we assess the practical and economic impact of proposed regulations before they are implemented, working with industry committees to translate market expertise into data driven recommendations that support more effective policymaking and reduce unintended consequences for businesses.
Where do you identify opportunities to build a more competitive private sector ecosystem beyond 2030?
AL MUSALLAM: Long-term competitiveness will depend on creating a more connected, coordinated and responsive business environment. This includes strengthening dialogue between government and industry, improving the quality of policy recommendations through rigorous analysis and ensuring businesses have easier access to services across the Kingdom.
For chambers and the businesses that rely on them day to day, the Federation is working to standardize service quality nationwide, bring business councils onto a single governance framework, and simplify access to services through unified digital platforms.
Together, these initiatives aim to strengthen institutional collaboration while enabling the private sector to play a more effective role in supporting Saudi Arabia’s longterm economic ambitions.
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