In conversation with Mohannad Basodan, CEO of the National Center for Privatization & PPP (NCP)

What is the National Center for Privatization & PPP (NCP), and what role does it play in driving privatisation and public-private partnerships (PPPs) in Saudi Arabia?

The National Center for Privatization & PPP (NCP) was established in 2017. It serves as the central authority and catalyst for designing and implementing privatisation and PPP projects across the kingdom.

At NCP, we contribute to the development of world-class infrastructure and public services while advancing Saudi Arabia’s sustainable development goals under Vision 2030. Our role includes facilitating projects that maximise economic and social impact, strengthening collaboration across 17 targeted sectors, and fostering partnerships governed by the highest standards of transparency.

As a centre of excellence, our team at NCP bring together public and private stakeholders with government decision-makers to unlock the full potential of private sector participation. This enables the government to focus on its regulatory and legislative roles, while enhancing fiscal sustainability, accelerating project delivery, boosting competitiveness, and improving service quality at competitive costs to deliver measurable economic, social and fiscal value.

Operating under the Private Sector Participation (PSP) Law, NCP supports sectors in developing their PSP plans, culminating in a prioritised list of actionable projects. NCP also takes a leading role in structuring these projects to deliver on government objectives while ensuring bankability and commercial attractiveness to the private sector. At every stage, the centre applies clear criteria, including technical and financial readiness, economic viability, feasibility and expected developmental impact. NCP ensures that projects are structured to provide value for money, effective risk-sharing and efficient execution – reinforcing its role as a key enabler of Saudi Arabia’s transformation journey.

How does the NCP contribute to achieving the goals of Vision 2030?

The kingdom is undergoing a comprehensive economic transformation driven by Saudi Vision 2030, which offers a roadmap to diversify the economy away from oil, enhance government spending efficiency and empower the private sector to become a key partner in the national economic development. 

Saudi Arabia also has a proven track record of privatisation. The journey began in 1984 with the privatisation of Sabic, the kingdom’s pioneering petrochemical company, followed by Saudi Telecom Company (STC), which has since become a major success story.

On the PPP front, early initiatives included water and cogeneration projects launched in 2003, followed by electricity projects, and Prince Mohammad Bin Abdulaziz International Airport in Medina in 2011.

At NCP, we are building on this foundation to advance the objectives of Vision 2030 by enabling sustainable, high-impact projects that contribute to building a thriving economy, a vibrant society and an ambitious nation. Since the launch of Vision 2030 in 2016, the privatisation ecosystem has been tasked with several strategic objectives, including providing access to government assets, improving service delivery, and creating a more agile and efficient government structure. These efforts led to higher-quality services, cost savings, greater economic diversification and growth, and enhanced competitiveness for the kingdom.

In terms of the regulatory and governance structure, how are privatisation and PPP projects governed in Saudi Arabia?

NCP has been instrumental in establishing world-class regulatory structures for the wider privatisation and PPP ecosystem. In 2021, three key legislative instruments came into effect: 

• The PSP Law sets out the general policies and the overarching framework governing PSP projects in the kingdom, covering both PPP projects and privatisation (divestment) projects related to infrastructure or public services.
   
• The Implementing Regulations provide the detailed regulatory framework for administrative, technical and procedural matters related to the preparation, tendering and awarding of PSP projects, in addition to the management of the PSP contracts. They also include a detailed governance framework and define the roles and responsibilities of entities participating in PSP projects.
   
• The PSP Governing Rules identify the entities with the authority to approve PSP projects, whether they are PPP projects or divestment projects.

Together, these frameworks provide a stable, transparent and investor-friendly environment that is both robust and adaptable to market needs. They are also internationally recognised. The World Bank’s PPP rankings, which assess how well countries’ regulatory frameworks and procurement practices support PPPs, show that Saudi Arabia’s overall scores improved in contract preparation and procurement, attaining the highest score among 140 countries. This governance structure has significantly enhanced the efficiency, and effectiveness of Saudi Arabia’s privatisation programme, ensuring smooth project execution while fostering a well-governed and enabling environment that supports private sector participation in national development.

In addition to all government projects that fall under the PSP law, there are other PPPs that fall under privatised sectors, such as Aramco’s PPPs and Public Investment Fund-backed projects and their PPPs.

How has NCP translated its mandate into impactful projects, and what projects has NCP successfully engaged in or closed?

NCP has expanded not only the scale of projects and investments but also the sectoral spread, mainstreaming PPPs beyond traditional infrastructure. In addition to core areas such as water and transportation, PPPs have been delivered in social infrastructure, including schools and hospitals, medical services, information technology and even sports. This diversification demonstrates the versatility of our privatisation and PPP portfolio.

Today, the NCP project pipeline includes more than 200 projects worth over $190bn. Since its establishment, NCP has delivered 68 contracts, implemented through 56 projects and four corporatisation projects. Currently, 68 additional contracts are in the tendering and awarding phase. Some of these key projects include:

• Desalination and water treatment plants – Development of 14 plants with a combined capacity of up to 5.7 million cubic metres a day.
• Airport upgrades – the new iconic terminal in Abha and a brand-new greenfield airport in Taif will ultimately bring capacity to approximately 20.5 million passengers, enhancing both domestic and international connectivity. These have already been tendered, and we are expecting to launch Hail and Qassim airports soon.
• School construction and operation – 120 schools for over 100,000 students, advancing human capital development. Phase two is in preparation for launch.
• Healthcare PPPs – Establishing a hospital in Medina with 244 beds, enhancing healthcare services.
• Aseer-Jazan highway project – 136km with six intersections and 57 bridges, improving connectivity and trade.
• JDAs in Al-Khobar Waterfront and the Boulevard in Dammam – with a combined area of over 1,000,000+ square metres developed for 20+ million visitors a year, boosting tourism and quality of life. 

What is the role of NCP in attracting investors to participate in its project portfolio?

Saudi Arabia, with its significant geopolitical influence, is one of the largest economies among the G20, with GDP surpassing $1tn in 2025. The kingdom is undergoing a major transformation towards non-oil sectors, powered by Saudi Vision 2030. In March 2025, Standard & Poor’s upgraded Saudi Arabia’s credit rating to “A+” with a “positive” outlook, reflecting strong non-oil sector growth and improved fiscal sustainability. 

Within this context, the NCP plays a central role in shaping a competitive and attractive PPP investment environment. By building an integrated ecosystem grounded in transparency, fairness and trust, the centre fosters investor confidence and supports the flow of capital needed for sustainable economic growth.

To expand international participation, NCP actively forges strategic partnerships and engages with global stakeholders through roadshows, local and international forums, and conferences. Recent visits to the US, the UK, Australia, Europe and Asia – including China, Japan and Korea – enabled NCP to meet with PPP units, large-scale developers, infrastructure advisers and financiers, thereby strengthening knowledge exchange and investor relations. 

Investment opportunities are offered to the private sector through the NCP Investor Portal, which ensures that projects are presented under transparent and competitive procedures. The centre maintains a continually updated database of over 2,500 unique local and international investors and evaluates proposals against clear and standardised criteria until the awarding stage. Investor experience evaluation is further reinforced through continuous monitoring and regular feedback, supported by surveys designed to gauge investor perception and help identify areas for improvement.

The PSP Law was developed in line with international best practices, making it familiar and accessible for international investors. Since its inception, NCP has received approximately 2,560 expressions of interest (EOIs), 43% of which have come from international investors representing companies from around the world. These accounted for more than 40% of all interested companies, highlighting both the capability of the Saudi Arabia contracting market and its eagerness to partner with international developers and investors. Such collaboration allows local construction and supply chain expertise to be complemented by the technical, financial and PPP acumen of international partners.

To ensure the highest standards of transparency and compliance, NCP publishes all opportunities on its Investor Portal, applies standardised bid evaluation procedures and shares project information publicly, including timelines as well as technical and financial requirements. The centre also works in close coordination with government entities to guarantee adherence to approved standards at every stage of the tendering and award process.

What are NCP’s plans and aspirations for the future?

Our vision is to go further. We are focused on enhancing our privatisation and PPP framework and building trust with both government entities and investors to ensure the successful execution of deals.

NCP aims to enhance policy, regulatory and financing frameworks to make its pipeline more attractive and accessible to a broad pool of investors and capital. Our goal is to attract more top-tier – particularly international – investors and support them in deepening their presence in upcoming projects, which include sports infrastructure projects. One of these is the Prince Faisal Bin Fahad Sports City project to build a stadium to accommodate more than 46,000 spectators – aligned with Saudi Arabia’s preparations to host the Fifa World Cup 2034, supporting the sector’s rapid growth.

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