Since the industrial age, government and private sector partnerships have been instrumental in driving innovation, introducing vital services and finding answers to some of humanity’s most pressing problems.

More recently, the public-private partnership model has been used for major commercial projects since the 1970s and has boosted the region’s economic development. Saudi Arabia has made huge headway in its transformation thanks to a thriving partnership between government and private sector firms. A great example is the Shareek program launched last March to encourage government and private sector collaboration through foreign direct investments, with a target of $1.33 trillion by 2030. The plan aims to lift the private sector’s contribution to the Kingdom’s gross domestic project by 65 percent and position Saudi Arabia among the top 15 largest economies in the world.

This type of partnership is one of the cornerstone strategies of Saudi Arabia’s Vision 2030 plan for social and economic reform, and has been instrumental in driving innovation, services and increased participation of the private sector across the nation.

As Saudi Arabia accelerates its journey toward a digital economy, partnerships in emerging technologies will be key to mapping research and innovation policies that respond to changing market conditions.

Partnerships in hybrid cloud computing and artificial intelligence will become vital, as these technologies play an important role in developing future innovations in the Kingdom. Since the COVID-19 pandemic, these technologies have been a key driver in accelerating digital transformation. The country has invested steadily in digital infrastructure, which has meant that despite lockdown restrictions, the Kingdom’s advanced digital ecosystem has allowed it to function smoothly, across business, education as well as the delivery of public services.

 Emerging technologies have significantly helped the Saudi government increase service quality, cybersecurity robustness and the integration of its digital services. Today, not only do partnerships in technology improve the overall effectiveness and performance of the public sector, but they also offer the Kingdom’s private sector many opportunities to work on large-scale projects that go far beyond their usual capacities.

One example of this model is the collaboration that marked a key milestone for payments innovation in the region, where Saudi Payments, under the supervision of the Saudi Central Bank, known as SAMA, launched Saudi Arabia’s instant payments system called SARIE with IBM and Mastercard. The introduction of the system is in line with Saudi Arabia’s Financial Sector Development Program under Saudi Vision 2030, which targets moving up to 80 percent of the country’s transactions to cashless payments by 2030.

With Saudi Arabia’s Vision 2030 aiming to foster a digital economy, public-private partnerships will boost the knowledge and skills of its citizens.

At IBM we have forged partnerships with local agencies such as Tuwaiq Academy for entrepreneurs in Riyadh, an educational institution established by the Saudi Federation for Cybersecurity, which is focused on developing Saudi talent through emerging technology programs. The group has also committed to a global plan to provide 30 million people with new skills needed for the jobs of tomorrow by 2030 with more than 170 new academic and industry partnerships.

We strongly believe collaboration between the public and private sector is needed to create the environment that will move the Kingdom from a society dependent on oil and gas to a knowledge and service sector economy. Knowing the significance of these strategic partnerships, we have devoted our efforts to working with the nation’s public sector to develop national strategies, while also helping to build and operate many of the nation’s technology enablers — such as its national financial platforms.

Shortly, as the Fourth Industrial Revolution becomes a key driver of digital economies, both public and private sectors need to assess how technology can accelerate Saudi’s transformation. As firms navigate mounting challenges in the current environment, the public-private partnership model presents a viable approach that is effective, scalable and sustainable. It is a key part of ensuring the Kingdom is future-ready and marks a watershed moment in driving radical changes toward the nation’s agenda for growth.

• Fahad Alanazi is general manager of IBM Saudi Arabia