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Al-Mashat stresses private sector key to economic resilience at Saudi FII

Businessmen Team economy 28 October 2025 02:25 PM
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Al-Mashat stresses private sector key to economic resilience at Saudi FII

Minister of Planning, Economic Development, and International Cooperation, Dr. Rania Al-Mashat, participated in the plenary session of the Future Investment Initiative (FII) conference in the Saudi capital, Riyadh.

The session, titled "Change Makers Council: Leaders Influencing Public-Private Partnerships," included Saudi Investment Minister Khalid Al-Falih, Hong Kong Financial Secretary Paul Chan, Dangote Group Founder Aliko Dangote, Dow Chairman and CEO Jim Fitterling, and other government and private sector representatives.

Al-Mashat asserted that alignment between the government and the private sector is the cornerstone for achieving economic resilience. She argued that governments cannot tackle alone increasing global challenges such as supply chain disruptions, climate change, and energy crises, and require active private sector participation within an environment of trust, clarity, and transparency.

The Minister noted that a recent FII index highlighted two main issues: the cost of living and job opportunities. She stated the solution lies in public-private sector harmonization, which provides the flexibility needed to face economic shocks and ensure sustainable growth.

She clarified that the government's role should focus on regulation and empowerment by setting clear rules, policies, and ensuring predictability. The minister affirmed that Egypt has made tangible progress in strengthening Public-Private Partnerships (PPPs) in sectors including infrastructure, healthcare, and energy. While acknowledging successes, she noted that continued dialogue is necessary to address challenges and expand participation.

She stressed that effective alignment rests on several core pillars, including clarity in investment regulations, clear definition of state priorities, and flexibility in regulatory policies to allow for innovation.

Al-Mashat cited the Egypt-Saudi Arabia electrical interconnection project as a successful example of regional cooperation and a model for integration between the two countries' institutions on major strategic projects.

Regarding the Egyptian economy, Al-Mashat said that growth, job creation, and resilience are key axes of the "National Narrative for Economic Development," a program that guides structural reforms and investment policies toward sustainable development. The country's medium-term development plan until 2030 is the executive program for this narrative.

She argued that without prior infrastructure investments—in logistics, ports, and electricity grids—Egypt could not have hosted leading global renewable energy companies such as ACWA Power.

Al-Mashat presented the Egyptian experience as a model for balancing public investment control with enhancing the private sector's role. She noted that Egypt adopted a dual approach: setting a ceiling for public investment while increasing private sector participation to about 57 percent of total investments, directing capital toward productive sectors.

She concluded that future fields like green hydrogen, smart grids, and Artificial Intelligence (AI)-supported infrastructure demand massive capital and high technical capabilities. This makes PPPs the most appropriate framework for pooling resources, ensuring financial viability, and achieving sustainability. Al-Mashat emphasized the importance of strong institutions and long-term plans to ensure policy continuity, which builds private sector confidence and reduces uncertainty.