Saudi Arabia's wealth fund Public Investment Fund (PIF) has launched a suite of three new initiatives - Local Content Growth Programme (Musahama); Suppliers Development Programme and Private Sector Hub - aimed at supporting and enabling the private sector.
Announcing this today (March 14) at its inaugural Private Sector Forum in Riyadh, PIF said the event as well as these initiatives are in alignment with PIF’s aim to increase its contribution to local content to 60% by 2025, support the private sector in increasing its contribution to GDP by up to 65% by 2030, create job opportunities, localize technology and drive the transfer of technology and knowledge to Saudi Arabia.
The two-day event, which kicked off at the Four Seasons Hotel, is the first of its kind, and an additional PIF initiative to both enable and engage the private sector.
The Saudi welath fund has gathered PIF executives, ministers, senior government officials, and representatives from 50 PIF portfolio companies, as well as over 4,000 private sector participants representing a broad range of sectors.
On Musahama, PIF said this programme is aimed at increasing the share of local content spend in PIF’s domestic portfolio to 60% by the end of 2025. As part of this programme, each PIF company will embed local content considerations in their design decisions and procurement policies.
The Suppliers Development Programme will support the development and upskilling of local suppliers and vendors to meet the growing requirements of PIF’s portfolio companies.
As part of this programme, PIF will this year hold vendor boot camps for the contracting sector to help Tier 2 and Tier 3 contractors prepare their companies to qualify as vendors.
On the Private Sector Hub, the Saudi wealth fund said it was a dedicated channel to share supplier and investment opportunities with the private sector. The hub is now live and contains more than 100 opportunities, and will be continuously enhanced and updated.
Jerry Todd, Head of the National Development Division at PIF, said: "The empowerment of the private sector is one of PIF’s foremost priorities considering the private sector’s crucial role in the growth and development of the Saudi economy."
"The launch of our Musahama and Supplier Development Programme is a major step forward in our efforts to drive the growth of local content in the kingdom," explained Todd.
"Both of these programmes will ensure that PIF and its portfolio companies embed local content considerations in our activities and operations which will contribute directly towards developing local industries and building long-term supplier and vendor partnerships, thereby strengthening local capabilities, enhancing the competitiveness of local players, improving supply chain resilience, and stimulating innovation in the Saudi economy," he stated.
"Through the launch of the Private Sector Hub, we are also reiterating our commitment towards enabling the private sector by creating more visibility on opportunities to participate as suppliers, investors and operators in PIF’s and our portfolio companies’ projects going forward," he added.-TradeArabia News Service