How can public-private partnerships develop the third sector in Saudi Arabia?

The economy of the Kingdom of Saudi Arabia is considered the largest in the Arab region, given that the Kingdom has the largest oil reserves in the world. However, with the launch of Vision 2030 and in pursuit of the most important goals of the vision, the Kingdom decided to focus on economic diversification as well as promoting public-private partnerships to support the non-profit sector.

In lieu of its development plan, the Saudi government aims to empower the non-profit sector, also known as the third sector, hand in hand with the cooperation of the private sector. Fully aware of the important developmental role the private sector has and its potential impact in the third sector, the Kingdom’s government has actively formed partnerships with private organizations, entrepreneurs, and business owners in different sectors, including education, health, housing, and job employment.
 

Here are some examples of successful public-private partnerships that have impacted the third sector:

• In job employment: Tamkeen Program. The Kingdom has implemented a program with various entities to better connect Saudis looking for work with potential job positions in private companies that have potential job opportunities and are looking for Saudi employees. This program is directed toward social security beneficiaries and helps them find jobs suitable for them, which in turn reduces their dependence on social security.
• In the housing sector: Shrakat Program. This vital partnership with the private sector is carried out by the Ministry of Housing. The program provides housing solutions and residential products at competitive and subsidized prices which inevitably enhances the well-being of Saudi families. 
• In the health sector: Partnership with the National Company for the Unified Purchase of Medicines, Devices, and Medical Supplies (NUPCO) through the ‘Wasfaty’ online service. The service aims to provide and facilitate access to medicine for people by linking hospitals and primary care centers with private pharmacies to ensure medicine is available for free at every place and at any time.
• In the education sector: Partnership with private companies for charitable work. The Ministry of Education, through the non-profit Takaful Foundation, signed a number of agreements with the private sector to financially support students in various schools across Saudi Arabia. The Foundation distributed in-kind and financial aid through the support of the Kingdom’s government and the Foundation’s partners from the private sector.

Public-private partnerships positively impact communities and have several benefits, including:

• Achieving one of the most important objectives of the Kingdom’s Vision 2030, which supports increasing the social impact of the non-profit sector by developing and raising the sector’s GDP contribution to 5% in the upcoming years, and raising the percentage of household savings out of total income to 10%.
• Enhancing social responsibility in the private sector.
• Increasing job opportunities by coordinating with private companies to train and employ beneficiaries from the third sector.
• Supporting the cooperation between the public and private sectors will ensure a rise in the quality of services provided to citizens.
• In addition to many benefits for the country and all its citizens.

There are many future collaborative opportunities between the private and public sectors that will benefit the third sector. These include the cooperation between universities and the private sector in scientific research. Some recently launched initiatives were led by the Research and Development Office at the Ministry of Education, the Office of Technology Exchange and Collaborative Research, and the knowledge transfer program. 

And in another sector, The Ministry of Transport signed a memorandum of understanding with Huawei to promote the adoption of modern mobility technologies and methods in the transport and logistics sector. This partnership will contribute to achieving the vision's goals in terms of improving the sector's performance in transporting goods and passengers, and improving the quality of life in the Kingdom.

3 recommendations for the successful partnerships between the three sectors:

• The need for regulations and legislation that govern these partnerships and regulate the relationship between the three sectors.
• Having clear, realistic, and achievable goals and outcomes.
• Monitoring the quality of the service or product provided to the citizen.

The Kingdom’s government aims to support all sectors and is eager to partner with the private sector in a way that benefits, empowers, and expands the developmental impact of the third sector. These partnerships benefit citizens, raise the quality of life, increase job opportunities, and diversify the economy. Providing all means of support to achieve Vision 2030 in a sustainable way, the Saudi government has shown that public-private partnerships are able to benefit the Saudi community in various ways.