$3.2 Billion in National Assets Sold: How Saudi Crown Prince’s Policies are Reshaping the Kingdom’s Economy

Saudi Crown Prince Mohammed bin Salman has initiated a dramatic shift in the Kingdom’s economic strategy by selling state assets to foreign investors. In a first-of-its-kind move, the Public Investment Fund (PIF), under the direct control of the Crown Prince, has begun auctioning national assets to offset mounting budget deficits. With the initial sale valued at $3.2 billion (12 billion riyals), the policy raises questions about its long-term consequences for Saudi Arabia’s economy and its citizens.
A Historic Shift in Saudi Economic Policy
The decision to sell off public assets marks a significant departure from Saudi Arabia’s historical reliance on its vast oil wealth. Since becoming Crown Prince, Mohammed bin Salman has overseen an era of unprecedented economic challenges, including:
Persistent budget deficits.
Rising public debt, projected to reach 1.3 trillion riyals ($346 billion) by 2025.
Declining public services as funds are diverted toward Vision 2030 initiatives and international image-building.
According to insider reports, the PIF has been tasked with identifying government-owned companies and properties to prepare them for sale. Assets under consideration for privatization include hospitals, health centers, schools, universities, and airports. These sales aim to attract foreign investments and generate immediate revenue to address the Kingdom’s financial shortfalls.
The Healthcare Sector: A Casualty of Privatization
The healthcare sector is among the first targets of this privatization wave. Reports indicate that:
Over 1,000 hospital beds, 200 pharmacies, and 20 medical centers will be privatized over the next three to five years.
In early 2024, a significant public hospital was sold for $763 million, setting a precedent for further sales.
The Crown Prince plans to sell 50% of the healthcare sector, citing an inability to sustain current levels of funding.
These measures have sparked concerns about accessibility and affordability of healthcare for Saudi citizens, particularly as private ownership often leads to increased costs and reduced public service.
Airports and Infrastructure Under the Hammer
Saudi Arabia’s General Authority of Civil Aviation has also announced plans to privatize its airports. This move aims to:
Allow private investors to manage operations.
Increase airfare and cargo service fees, passing costs onto consumers.
Lay off Saudi workers in favor of cheaper, foreign labor with specialized expertise.
While the government argues that privatization will modernize infrastructure, critics warn of severe consequences, including higher costs for citizens, increased unemployment, and diminished national control over key assets.
Economic Inequality and the Loss of Sovereignty
Analysts warn that the privatization of essential services and infrastructure risks deepening economic inequality. Rising inflation and poverty rates have already strained the Saudi middle class, and the sale of national assets could exacerbate these trends. The potential for foreign entities to control strategic infrastructure raises further questions about Saudi Arabia’s long-term sovereignty and governance.
Why Is This Happening?
Critics attribute these drastic measures to Mohammed bin Salman’s Vision 2030, which has been plagued by excessive spending on ambitious yet unproven projects such as NEOM, The Line, and lavish entertainment ventures. Despite consuming billions of dollars, these projects have yet to yield tangible benefits for ordinary Saudis.
Instead of prioritizing productive investments, the Crown Prince has channeled resources into international sporting events, luxury developments, and public relations campaigns aimed at improving his global image. This spending spree has drained the national budget and left the Kingdom reliant on loans and asset sales to stay afloat.
Global Scrutiny
The Crown Prince’s policies have drawn criticism from international organizations. Observers argue that Saudi Arabia’s increasing privatization risks entrenching foreign influence in national affairs while failing to address the core economic issues facing the Kingdom.
The Road Ahead
As Mohammed bin Salman continues to implement these policies, the Kingdom faces a critical juncture. While privatization may provide short-term financial relief, it risks undermining the social contract between the government and its citizens, which has historically been based on state-funded services and economic stability.
If these sales proceed without transparency and accountability, they could deepen public discontent and further destabilize an already fragile economy.