The Public Investment Fund (PIF) of Saudi Arabia has announced the launch of Tasama, a new company designed to develop and enable the kingdom’s business services sector. This strategic initiative aims to enhance the efficiency and competitiveness of local businesses, attracting further investment and fostering economic diversification in alignment with Vision 2030.
By the Numbers
- PIF aims to grow the business services sector’s contribution to Saudi Arabia’s non-oil GDP by SAR 40 billion (USD 10.6 billion).
- The initiative is projected to create over 100,000 direct and indirect jobs by 2030.
A Strategic Move
The establishment of Tasama by the Public Investment Fund represents a pivotal step in Saudi Arabia’s economic transformation agenda. This new entity is mandated to localize specialized services, enhance the sector’s overall competitiveness, and drive innovation across various business service domains. By focusing on critical areas such as consulting, professional services, facilities management, and real estate services, Tasama will play a crucial role in building a robust and resilient non-oil economy. This move underscores PIF’s commitment to unlocking new growth opportunities and diversifying national income sources.
How the Platform Works
Tasama will function as a catalyst for growth within the Saudi business services landscape. Its mandate includes strategic investments in promising local and international companies, developing local capabilities through training and talent development programs, and fostering a collaborative ecosystem. The company will identify critical gaps in the market and work to attract advanced technologies and expertise, thereby improving service delivery standards and efficiency across the kingdom. By enabling businesses to access high-quality, localized services, Tasama will support their operational excellence and expansion.
Key Partners
While specific partners are yet to be fully detailed, Tasama’s success will inherently rely on strong collaboration across various stakeholders. This includes partnering with government entities to streamline regulatory frameworks, working alongside private sector companies to identify investment opportunities, and engaging with educational institutions to cultivate a skilled workforce. The initiative is expected to attract significant foreign direct investment (FDI) as international firms look to capitalize on Saudi Arabia’s rapidly growing business services market and contribute to its development.
About the Saudi Public Investment Fund
The Public Investment Fund (PIF) is Saudi Arabia’s sovereign wealth fund and a key driver of the kingdom’s economic transformation. With a mandate to diversify the economy and achieve Vision 2030 objectives, PIF invests strategically in various sectors, both domestically and internationally. Tasama, as a newly launched PIF company, is specifically designed to spearhead the growth and maturation of the business services sector, aligning with PIF’s broader strategy of creating new industries and job opportunities within Saudi Arabia.
Significance for the MENA Ecosystem
Tasama’s launch holds significant implications not just for Saudi Arabia but for the broader MENA tech and investment ecosystem. By strengthening the foundational business services sector, it creates a more conducive environment for startups, SMEs, and large enterprises across the region to thrive. Enhanced local capabilities in consulting, technology integration, and operational support will reduce reliance on external providers, fostering a more self-sufficient and competitive regional economy. This initiative could serve as a blueprint for other MENA nations looking to bolster their service economies and attract global talent and investment.
Looking Ahead
The establishment of Tasama marks the beginning of a transformative journey for Saudi Arabia’s business services sector. With ambitious targets for GDP contribution and job creation, the company is poised to become a cornerstone of the kingdom’s non-oil economy. Future efforts will likely focus on aggressive investment, talent attraction, and the rollout of new service offerings to meet the evolving demands of a dynamic business landscape. Tasama’s strategic vision is expected to solidify Saudi Arabia’s position as a regional hub for business excellence and innovation.
Source: Zawya
