Saudi Arabia Targets Trillions in Green Investments with Private Sector Boost
Minister of Investment Khalid Al-Falih announced that Saudi Arabia confidently expects the private sector to fund 40% of anticipated five hundred billion dollars in infrastructure investments over the coming years.
Speaking at the Development Finance Conference (MOMENTUM 2025) in Riyadh, the minister confirmed the Kingdom is diligently working toward achieving net-zero carbon emissions by 2060 through strategically deploying these massive infrastructure projects.
Furthermore, Al-Falih anticipated that this crucial stream of national investments will ultimately reach trillions of dollars as various energy initiatives expand significantly across the Kingdom.
Driving Green Finance and Net-Zero
Al-Falih clarified that this considerable investment liquidity will flow through multiple crucial channels, most notably encompassing privatization programs and Ministry of Energy initiatives. Crucially, leading national companies, particularly ACWA Power and Aramco, will drive expansion in areas like global blue hydrogen production and marketing, ensuring diverse investment avenues.
The Minister affirmed that the Kingdom has already exceeded the ambitious targets established by the Paris Climate Agreement, relying on balanced energy strategies to reduce carbon emissions drastically. Specifically, these ambitious national plans include generating 50% of the Kingdom’s electricity from high-efficiency gas turbines, renewable sources, and battery storage technologies.
Attracting Global Capital
Additionally, the legislative framework strongly supports green finance, as the Debt Management Office recently launched a dedicated green finance framework to attract international capital. The Capital Market Authority concurrently established clear regulations for green bonds, while the Tadawul platform now expands the carbon credit market, positioning it as the Middle East’s largest.
Consequently, Al-Falih emphasized that Saudi Arabia now accounts for the largest share of regional green finance and environmental, social, and governance initiatives, capturing two-thirds of the total efforts. Beyond finance, the minister revealed ambitious plans to position the Kingdom as a global hub for artificial intelligence through agreements with leading international companies and accelerated development of digital infrastructure.
Ultimately, Al-Falih explained the Kingdom offers appealing return levels combined with the strongest regional credit rating, which surpasses some G7 countries, making it highly attractive for international capital.
