Key objectives of governance in the public sector and achieving Vision 2030

Governance objectives in the public sector represent a fundamental element upon which any ambitious national strategy is based, most notably the Kingdom of Saudi Arabia’s Vision 2030.

Governance is no longer just about traditional oversight procedures, but has transformed into a comprehensive administrative policy aimed at restructuring government work from within, to be more transparent, efficient and responsive to the citizen’s aspirations.

As the Kingdom seeks to build a state of institutions and enhance the trust of society and the private sector, it has made governance objectives in the public sector a vital bridge through which government agencies can move towards a globally competitive operational model.

Accordingly, in this article we try to highlight the most important of these goals and how they form a real roadmap to enable the public sector to lead the national transformation process, and to translate the aspirations of the vision into a tangible reality that every citizen can enjoy.

Abdulaziz bin Yasser Al-Anzi Law Firm

The concept of governance

The concept of governance in the public sector is gaining increasing prominence in contemporary administrative discourse, given its significant role in improving the performance of institutions and ensuring their sustainability.

The Arabic Language Academy has approved the term "governance" as the Arabic equivalent of the term "good governance," which traces its etymological origins to the ancient Greek word "governance," which encapsulates a highly significant metaphor: the ability of a ship's captain to navigate his passengers and their belongings to safety, thanks to his superior skill and keen sense of management.

In technical terms, governance is defined as an integrated framework of systems, controls, and governing rules that frame the network of relationships between stakeholders and enshrine a set of fundamental principles such as justice, transparency, and equal opportunities.

The governance framework in the Kingdom evolved prior to Vision 2030.

The development of governance in this sense was not born out of Vision 2030, but was preceded by long foundational efforts, as many regulations were issued during the past decades that established the rules of institutional work, such as the Council of Ministers system issued in 1414 AH, which organized the decision-making mechanism at the highest levels, and the Regions system issued in 1412 AH, which strengthened administrative decentralization and raised the efficiency of services in various regions of the Kingdom.

On the level ofIntegrityIn the fight against corruption, the Oversight and Investigation Authority was established in 1391 AH, in line with the state’s direction towards ensuring administrative compliance. This was followed by the adoption of the National Strategy for Protecting Integrity and Combating Corruption in 2007, which represented a qualitative shift in the methodology of addressing corruption and protecting public funds. The Ninth Development Plan (2010-2014) also included clear directions towards enhancing the efficiency of government agencies as a fundamental pillar of sustainable development.

These legislative and institutional accumulations formed a solid foundation that paved the way for the establishment of the National Anti-Corruption Commission “Nazaha” in 2011, and laid the first principles of good governance upon which Vision 2030 was later based.

The importance of governance in the public sector

Through the applicationPrinciples of good governanceGovernment institutions can move from the traditional role to a stage of leadership in performance, which ensures the protection of public funds and the efficient and effective fulfillment of society's aspirations. The importance of governance in the public sector is evident in the following:

1. Establishing a culture of public disclosure of official policies, directions and decisions to ensure that everyone is informed.
2. Improving the level of institutional performance through the development and enhancement of operational and technical processes.
3. Activating oversight mechanisms that ensure all job levels are held accountable for the results of their work.
4. Ensuring that beneficiaries receive their services fairly and in accordance with standards that guarantee their legal rights.
5. Improving the quality of government decisions by relying on accurate data and sound control systems.
6. Drying up the sources of corruption and preventing the abuse of power or the waste of resources through strict oversight controls.
7. Building bridges of trust with the public, which motivates citizens to participate actively and cooperate positively.
8. Supporting the organization's ability to survive, grow, and successfully achieve its long-term vision and goals.

The most important types of governance in the public sector

After examining the concept of governance in the public sector and its importance, it becomes clear that its application does not follow a single model, but rather branches out into specialized paths, each targeting a vital aspect of government work.

These types together form an integrated system that covers institutional, financial, digital, environmental and social dimensions, thus ensuring a balanced achievement of the Sustainable Development Goals.

The following is a brief overview of the most prominent of these types and the role of each in supporting government performance and enhancing beneficiary confidence:

Corporate Governance

It focuses on building robust organizational structures that ensure compliance with legal and regulatory standards, with the aim of improving the efficiency of internal management and accurately achieving institutional goals.

social governance

It focuses on strengthening the partnership between the government and society, distributing services fairly, and involving citizens in making decisions that affect their lives.

Financial governance

It is concerned with rationalizing the management of public funds and allocating budgets fairly and effectively, with the aim of enhancing transparency in spending, reducing errors and increasing public confidence.

Environmental governance

It focuses on integrating environmental standards into government projects to ensure the sustainability of natural resources and improve the quality of life.

e-governance

It aims to employ digital technology to facilitate government services and track performance, with the goal of improving efficiency and speed of access.

Components of integrated governance

The governance system is based on a set of fundamental elements, including:

1. Establishing transparency by making information clearly available.
2. Activating accountability by holding those responsible for their outputs accountable.
3. Raising government efficiency to ensure the provision of high-quality services at the lowest cost and in the shortest time.
4. Establishing the concept of institutional integrity to combat corruption and promote ethical behavior.
5. The rule of law that ensures the fair application of regulations.
6. Activating multi-level government oversight.
7. Managing risks proactively and consciously.
8. Measuring and developing institutional performance in a sustainable manner.

Key differences between governance objectives in the public and private sectors

Public sector governance differs from private sector governance in several key aspects, reflecting the different nature of each and their ultimate goals. The main goal of governance in the private sector is to maximize profits for shareholders, while in the public sector it focuses on serving the public interest and achieving societal well-being. This difference is also reflected in the stakeholders; the private sector focuses on shareholders, customers, and employees, while the circle of stakeholders in the public sector expands to include citizens, the government, and the entire community.

In terms of financing, the private sector relies on capital and self-generated profits, while the public sector is based on the general budget and taxes, which results in a clear difference in accountability mechanisms; the former is accountable to the board of directors and shareholders, while the latter is accountable to parliament, regulatory bodies and citizens. Transparency also stands out as a much higher element in the public sector to ensure public confidence, while it is limited in the private sector only according to legal requirements.

Flexibility also differs significantly; the private sector is characterized by high capacity and speed in decision-making, while the public sector slows down due to the strictness of legal and regulatory procedures, as well as performance measurement, since the private sector relies on purely financial indicators such as profitability and return on investment, while the public sector has multiple indicators to include service quality, community satisfaction and social impact.

On the other hand, the private sector is bound by commercial laws and international standards, while the public sector is bound by governmental administrative, regulatory and supervisory laws, which confirms the particularity of each model and its unique requirements.

What are the strategic motives behind governments' interest in achieving governance goals in the public sector?

1. The National Transformation Programs and Vision 2030 require the establishment of robust governance frameworks that ensure the success of economic diversification paths and enhance the developmental partnership of the public sector.
2. Global financial pressures necessitate maximizing returns from public resources, reducing waste, and achieving fiscal discipline through effective governance mechanisms.
3. The societal demand for transparency, as citizens have become more aware of the need to disclose aspects of public funds management, which necessitates the adoption of governance mechanisms that meet this demand and enhance trust.
4. Good governance, supported by the oversight and anti-corruption authority, is the first line of defense to reduce corruption crimes and ensure integrity at all levels.
5. Improving transparency, competitiveness and ease of doing business indicators is directly linked to the quality of governance, thereby enhancing the country's attractiveness to foreign investments and improving its global reputation.
6. Digital government services need strict governance frameworks to ensure data security, protect privacy, and guarantee the reliability and effectiveness of services.
7. Ensuring the continuity of resources and services for future generations through strategic planning, risk management, and sustainable investment in national infrastructure and capabilities.

Updated systems and regulations to develop a legislative environment that supports governance

The Kingdom adopted a package of key legislative reforms, which together formed a legal framework conducive to the application of governance principles in the public sector. These efforts culminated in the Cabinet's approval of the "Guidance Manual for Public Entities Governance" in 1446 AH, to serve as a unified reference that reinforces the principles of transparency, accountability, and efficient decision-making in government agencies.

This system was strengthened by the issuance of the new Government Tenders and Procurement Law, which established a unified electronic portal that promotes integrity and equal opportunities and prevents conflicts of interest in government contracting procedures. The Oversight and Anti-Corruption Authority System also came to grant the “Nazaha” Authority broad powers that included investigation and criminal prosecution, to enhance accountability and protect public funds.

In the context of digital transformation, the Personal Data Protection Law was issued to provide a legal framework governing the processing of government data and protecting individual privacy, while the new Companies Law reinforced the principles of transparency, disclosure, and compliance with corporate governance standards.

Governance performance indicators and monitoring progress towards the 2030 goals

Monitoring progress towards the goals of the Kingdom’s Vision 2030 depends on a precise and integrated system for measuring governance objectives in the public sector. One of its most important pillars is the National Center for Measuring the Performance of Public Agencies “Adaa”, which was established specifically to be the official reference for measuring the efficiency and effectiveness of the public sector, through the application of standardized models and tools and the issuance of periodic reports on the level of achievement.

The fruits of this approach have been evident in the unprecedented results announced in the Vision 2030 Annual Report for 2025, which revealed that 93% of the 390 activated performance indicators met or exceeded their interim targets, in addition to the completion of 935 strategic initiatives.

This achievement reflects the high efficiency of the governance framework adopted by the Kingdom, where the measurement philosophy is based on adopting the principle of transparency to ensure accountability and periodic follow-up, while making it possible to know the "baseline" and "actual value" against the interim and final targets for each indicator.

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