The Legal Framework for Public-Private Partnerships (PPPs) as an economic, social, and environmental Sustainability Transition in Saudi Arabia

Abstract

This research examines the legal framework for public–private partnerships (PPPs) in the Kingdom of Saudi Arabia as a sustainable transition mechanism across three levels: social, economic, and environmental, by analysing all national regulations applicable to PPPs. The private sector could play a significant role in societal prosperity through its direct and indirect effects, making PPPs a crucial component in building sustainable infrastructures in countries. This has led the United Nations to recognise the need for all parties, including governments and the private sector, to cooperate in an international partnership to achieve the Sustainable Development Goals (SDGs). However, PPPs cannot effectively contribute to the SDGs unless governments implement internal legal reforms and enhance the legal environment. Therefore, the purpose of this research is to examine the current legal framework for PPPs under Saudi law and assess the extent to which it supports the Kingdom’s Vision 2030 and the SDGs. Numerous PPPs have recently been adopted in the country for the first time, with many more in the tendering process at various stages. In this regard, due to the recent adoption of PPPs, there was a strong need to conduct interviews to investigate their application across different sectors in the country. Semi-structured interviews were conducted with government procurement officials, policymakers, and other experts in the field to determine the extent to which PPPs can serve as effective instruments for achieving sustainability in Saudi Arabia. PPPs clearly offer various advantages, including leveraging private sector expertise and funding, enhancing quality, fostering innovation and local content, and enabling risk sharing. However, challenges remain, such as unstable environmental and social regulations, a lack of environmental and social requirements in contracts, negative impacts on public employees, and a wide number of applicants in the short term. In conclusion, the legal framework governing PPPs is critical to ensuring Saudi Arabia’s efforts to achieve its Vision 2030 objectives, some of which align with international standards, while others require serious consideration and reform.