Introducing Strategic Commercialization as a Solution
14
Global Practices in Asset Commercialization
Different business models are applied globally, ranging from fully public delivery to partnerships and private-sector-led operations, each with its own level of control, complexity, and risk sharing. Choosing the right model depends on industry type, asset characteristics, entity capabilities, and desired balance between public benefit and financial return.
In-House
Concessions
Long-term partnerships where the private sector finances, develops, and operates the asset while sharing risks and returns. Public-Private Partnerships
Leasing
JV
Public entity develops and manages commercial activities directly using internal teams or government-owned subsidiaries.
A private entity is contracted to operate, manage, or develop the commercial asset under a service agreement or concession (often long-term).
Specific rights (e.g., naming, retail, data use) are licensed or leased to private partners in exchange for fixed or variable payments.
The public sector co-invests in a commercial asset with private partners through a special-purpose vehicle (SPV).
Description
Limited Private Sector Involvement
High Private Sector Involvement
Often used when commercial capacity exists or for sensitive/ strategic assets.
Common in transport, utilities, retail spaces, and public venues.
Large-scale infrastructure, and urban development.
Naming rights (e.g., metro stations), F&B concessions, telecom towers.
Real estate development, mixed- use assets.
Use Case
in 2024, which represents increase since the launch of vision 2030 1 515 billion 113%
Progress indicates that Saudi Arabia is making substantial strides toward its non-oil revenue goals, aligning with the Vision 2030 objectives. Non-Oil Revenue Focus
private sector contribution to the GDP 2 pro-business reforms identified, of which have been successfully implemented 3 in total projects value mega and giga projects across the kingdom 4 (e.g., NEOM, Qiddiya) +4.88 trillion +255 2016 40% 77% 517
2030 60%
The public asset commercialization model is gaining momentum globally as governments seek new ways to unlock value from its assets. In Saudi Arabia, the opportunity is especially timely. Vision 2030 emphasizes asset optimization, private sector participation, and diversified revenue streams, key areas where current indicators point to strong potential and strategic viability of such concept. Strategic Signals from Saudi
One the largest portfolios of projects globally across multiple sectors, designed to attract private investment, stimulate ancillary revenue, and position the Kingdom as a global destination. World-Class Mega and Giga Projects Kingdom efforts and initiatives have been focused on significantly expanding private sector involvement across strategic sectors, supported by investment facilitation measures. Private Sector Engagement Efforts
1) Non-Oil Exports Reach SAR515B in 2024, Saudi Press Agency. https://spa.gov.sa 2) Saudi Vision 2030 Document, Vision 2030. https://vision2030.gov.sa 3) About the Kingdom, Invest Saudi. https://investsaudi.sa 4) KSA Projects Overview, Big 5 Construct Saudi. https://big5constructsaudi.com
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