Saudi Arabia’s private sector is emerging as the engine of the Kingdom’s diversification drive, according to Minister of Investment Khalid Al Falih, who said its contribution to gross domestic product (GDP) has doubled in ten years — rising from SR1.1tn ($293bn) in 2016 to about SR2.3tn ($613bn).
He called for this figure to exceed SR2.4tn ($639bn) within five years.
Al Falih underscored the vital and complementary role of the private sector within Saudi Arabia’s national investment ecosystem, noting its growing contribution to the Kingdom’s economic growth.
Saudi private sector
The minister made the remarks on Sunday during a meeting with Federation of Saudi Chambers (FSC) Chairperson Hassan Alhwaizy, along with heads and representatives of Saudi chambers of commerce, joint Saudi-foreign business councils, and national committees at the FSC headquarters.
Also attending were Assistant Minister of Investment Ibrahim Al-Mubarak, CEO of the Saudi Investment Promotion Authority (SIPA) Khaled Alkhattaf, and several deputies, general directors and senior officials at the ministry.
Domestic investment rises
Al Falih emphasised the private sector’s crucial role in driving economic growth, noting that the sector recorded a 76 per cent increase in domestic investment in 2024, with local investment now accounting for around 30 per cent of Saudi GDP.
He added that the total stock of foreign direct investment (FDI) has surpassed SR1tn ($266bn) — a 100 per cent increase compared with 2016.
“These positive indicators reflect that the Kingdom’s economic-transformation journey requires continued collaboration and integration between the public and private sectors,” Al-Falih said.
Vision 2030 goals
The meeting aimed to strengthen and expand strategic partnerships between the Ministry of Investment and the FSC, open new horizons for collaboration with the private sector, and address investment challenges in line with the objectives of Saudi Vision 2030 and the National Investment Strategy derived from it.
Al Falih said such coordination is vital to ensuring sustained growth, greater private-sector participation, and a more diversified national economy.
Investment snapshot
| Indicator | Figure | Change |
| Private-sector GDP contribution | SR2.3tn ($613bn) | Doubled since 2016 |
| Target (5 years) | SR2.4tn ($639bn) | Projected increase |
| Domestic investment growth | 76 per cent (2024) | Up from 2023 |
| Local investment share of GDP | ≈ 30 per cent | Current level |
| FDI inflows (2024) | SR120bn ($31.9bn) | 4× since 2016 |
| Total FDI stock | SR1tn ($266bn) | 100 per cent rise |
