While there are still challenges to overcome, much progress has been made over the past 18 months, demonstrating the continued interest in PPPs from both the public and private sectors. The undeveloped legislative structure has not deterred astute investors from entering the PPP market early to realise the potential demand for basic and social infrastructure in the kingdom.
Correctly structured, PPPs can be successfully developed within the current legal framework, as evidenced by the number of PPP projects in various stages of implementation. The current pipeline of PPP projects means the legal framework is likely to be assembled, with precedent and direct laws shaping the legislative environment in tandem. Further efforts are however required to ensure PPPs have the best chance of reaching their full potential.
Saudi Arabia has recently been undergoing significant change and this is likely to extend to the commitment to create a regulatory framework conducive to the success of PPP projects outside the realm of traditional procurement projects. Progress has already been made in opening up sectors and reforming laws and regulations that will have a direct positive impact on PPP projects. The strong interest from both the public and private sectors means that further progress is likely and the number of PPP projects with international, regional and local partners in Saudi Arabia is destined to increase over the next few years.