Our Programs For The Private Sector
Empowering the private sector to achieve our nation’s ambition
Overview
To boost PIF's support of the private sector and to drive the broader National Development agenda of Vision 2030, the Fund’s Board of Directors has launched MUSAHAMA Program to enhance the Local Content contribution of PIF with a Local Content target of 60% by 2025.
In addition, PIF has launched the Supplier Development Program to develop suppliers’ capabilities and capacities by implementing measures across demand, supply, matchmaking and enabling pillars.
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MUSAHAMA Program
In order to achieve its Local Content target of 60% by 2025, the Fund has developed the Local Content Growth Program with a vision to leverage its spending to catalyze the development of at-scale, competitive, and innovative industries in KSA.
PIF is committed to integrating Local Content considerations throughout investment lifecycle and procurement spending across the Portfolio. Integration of Local Content starts at the design stage where emphasis is placed on utilizing locally available products and services by incorporating locally rooted, innovative design choices into design selection and optimizing designs to leverage locally available producers. In addition, PIF invests in developing local industries that act as catalysts to the Kingdom’s transformation and value chains’ expansion, which increases Local Content on economic level. Within its procurement process, Local Content mechanisms are deployed across the portfolio to empower national products & services such as the National Preference, Mandatory List and incorporation of Local Content in commercial evaluations. MUSAHAMA program also aims to drive pride and innovation in local materials & designs by fostering an innovative ecosystem.
MUSAHAMA program enables the private sector growth by elevating its competitive position, facilitating its capacity expansion, and fostering innovation across the ecosystem.
Through the following four dimensions, the Program will further strengthen and develop domestic businesses and industries as they play a key role in building the Kingdom’s future:
Ensuring PIF provides opportunities for local suppliers when designing and implementing projects
Investing in developing local industries
Supporting the competitiveness of local industries
Engaging the ecosystem to drive pride and innovation in local materials and designs
For more information about the PIF MUSAHAMA - Local Content Growth Program.
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Supplier Development Program
The Fund’s Supplier Development Program aims to establish long-term strategic partnerships between PIF portfolio companies and their suppliers, with the ultimate goal of further building supplier capabilities.
Through the Supplier Development Program, a Portfolio Company would commit to implementing targeted measures in support of its suppliers. The Program covers several broad support areas, including over 40 targeted measures which can be broken down into tools and services, spanning demand transparency, supplier capability and capacity enhancement, as well as general enablers.
Ultimately, the Program is a key enabler that will directly support local suppliers and further the Kingdom’s broader Local Content agenda. The Supplier Development Program aims to achieve two main outcomes:
Economic development outcomes – through enabling the delivery of development goals and VRP targets by:
Creating investment opportunities for the private sector, promoting and expanding local supply chains
Growing supplier ecosystems beyond anchors, both large and medium suppliers
Contributing to increasing portfolio companies’ local content contribution
Growing the direct and indirect supplier ecosystems
Business competitiveness outcomes – through supporting portfolio companies in achieving their business objectives by:
Driving domestic competitiveness through enhancing local supplier capability, quality, and cost-competitiveness
Driving sophistication and diversification by upgrading suppliers’ operations and fostering more complex value chains
Suppliers are encouraged to apply to PIF portfolio companies’ Supplier Development Programs and commit to meet program requirements with the ultimate aim of improving their performance and competitiveness to successfully graduate from their Program. Several PIF portfolio companies have ongoing Supplier Development Programs, such as STC and Ma’aden.
