Saudi Arabia is targeting investments totaling SR9 trillion (approximately $2.39 trillion) from the private sector, bolstered by an initial contribution of SR3 trillion from the Public Investment Fund (PIF), according to Minister of Economy and Planning Faisal Al-Ibrahim.

Al-Ibrahim’s remarks were made during a fireside chat at the PIF Private Sector 2025 event held in Riyadh.

The Kingdom has articulated a National Investment Strategy designed to complement its Vision 2030 economic diversification initiative.

Al-Ibrahim emphasized PIF’s role as a catalyst for encouraging private sector participation in various projects.

He stated, "If you look at infrastructure mode, we expect the total required investment over the next seven to ten years to be around $1 trillion, so PIF can’t do this on its own.

It will kick start, it will ignite, and it will set the example that will create a dynamic private sector."

During the discussion, Al-Ibrahim highlighted the private sector's pivotal role in Saudi Arabia's economic transformation, cautioning against excessive reliance on government incentives.

He remarked that the private sector is seeking longer-term strategic clarity to effectively pivot and meet emerging opportunities.

Al-Ibrahim noted, "Incentives today, driven by the government, are laser-focused on objectives."

The minister offered examples of the private sector's success in the healthcare industry, including local professionals achieving international recognition and innovative advancements such as a robotic heart transplant.

Additionally, he mentioned Habib Healthcare exporting its hospital information system to the UK's National Health Service.

Al-Ibrahim reiterated that the economic transformation should predominantly rely on the private sector’s capabilities while the government provides strategic support.

He stated, "The private sector is more effective, more efficient, (it) can innovate and wants to play a bigger role in this economic objective."

As part of this transition, Al-Ibrahim pointed out that prior to Vision 2030, the private sector's contribution to the Kingdom's gross domestic product (GDP) was below 40 percent; this figure has since increased to 46 percent, with 65 percent including contributions from PIF.

He referenced recent positive economic indicators, such as the Riyadh Bank Purchasing Managers’ Index, which recently exceeded 60 basis points, representing significant growth not seen in the last decade.

Al-Ibrahim reported a non-oil growth rate of 4.2 to 4.3 percent, exceeding previous government expectations of 3.7 to 3.9 percent at the time of the budget announcement.

Future projections estimate growth rates of 4.8 percent in 2025 and 6.2 percent in 2026, with hopes for a continued emphasis on private sector-led growth.

In conclusion, Al-Ibrahim expressed optimism regarding the Kingdom's non-oil export development, acknowledging the need for patience while paving the way for private sector leadership in driving forward the Kingdom’s economic objectives.