American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 15, | August, 2023 P a g e | 137 www.americanjournal.org A THEORETICAL VISION OF THE STRATEGY OF DEVELOPING THE PRIVATE SECTOR IN HUMAN DEVELOPMENT IN ARAB SOCIETIES Prof. Ishaq Yousef Al-Ayyash University of Samarra, College of Administration and Economics Isac.y1982@gmail.com 009647805690082 A B S T R A C T K E Y W O R D S This research aims to develop a theoretical vision for the strategy of developing the private sector in human development in Arab societies, and the researcher adopted the descriptive approach in analyzing the research problem. The research has three axes, the first axis dealt with the development of the private sector between (difficulties and obstacles), the second axis included the role of the private sector in developing human resources, while the strategy for developing the private sector in our societies came in the third axis. The research reached a set of conclusions and recommendations, and among the conclusions is the need to provide an appropriate and stimulating climate that helps to carry out investment activity, through a number of procedures that reflect the best economic, legal and political conditions for private sector activity. In increasing their commercial activity due to the national and expatriate workforce, and developing solutions to address these problems in order to achieve development and prosperity, which will reflect positively on development. Development strategies, Private sector, Human development. Introduction The private sector is the first partner of governments in achieving the development process and its goals, as it plays social roles that governments may not be able to perform, meaning that the relationship between the state and this sector must take a cooperative and complementary form in improving the social and economic conditions of local communities. Within the framework of the interest in the private sector in our societies, there are many bodies and research centers that have called for the need to activate the role of this sector in the development of aspects of human resources and institutional resources alike. However, the cessation of thought on the phenomenon of private organizations and the questioning of them in order to shed more light on them is only an implicit indication that the role and status of private American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 138 www.americanjournal.org organizations have not yet reached the level desired by the development and modernization movement in our societies. In light of the multiplicity of obstacles facing the growth of the private sector on the one hand and the failures that characterize the activity of this sector on the other hand, the ability of the private sector to develop requires the development of an integrated and coordinated framework that takes into account all aspects that would affect that process, and this is what we are trying to answer through this study, whose main problem revolves around the following: What are the mechanisms and procedures of the private sector development strategy in human development? To answer this problem, the study included three axes as follows: · Developing the private sector between (difficulties and obstacles). · The role of the private sector in human resource development. · The strategy of developing the private sector in our societies. First: Developing the private sector: between (difficulties and obstacles). The issue of developing the private sector in any country is a very important and necessary issue, not only through its positive effects on human development, but also based on the very sensitive issues related to it, whether through obstacles and obstacles that limit the development of the private sector, or through the failures that characterize the activity of this sector. These issues must be taken into account in order to develop an appropriate strategy for the development of the private sector and activate its role in achieving both human and economic development. Private sector organizations play an important role in the development and development of societies as they are considered complementary to the government sector in terms of providing services and providing support to different segments of society (1). (Costanini et al., 2011, 34). The term private sector refers to a wide range of government-independent organizations (NGOs), characterized mainly by humanitarian, legal and profit objectives, generally seeking to alleviate suffering, determine the interests of the poor and other vulnerable groups, protect the environment, provide basic social services, or undertake community development (Abdelaziz, 2007, 12).(Abu Sukhaila, 2015, 76) sees it as that part of the economy owned by the business sector, from the owners of capital whose main goal is to maximize its profit, and be under the supervision and control of the public sector that works to maximize its work to achieve the maximum possible benefit for society. For more than a decade, interest in the private sector has been gradually increasing, whether at the level of studying the structures and organization of local communities after the model centered on the role of the state accounted for the largest share of sociological studies, or at the level of the growing role that international organizations and bodies began to assume for these organizations in order to involve what has become known as the third sector orPrivate organizations in public sector programs As part of the strategy to reduce government bureaucracies and upgrade the role of the private sector, which was considered an indicator of increased participation and transparency in the development process, the interest in private organizations falls within a cultural discourse that has been growing continuously, in which the concepts of civil society, pluralism, the advantages of social dialogue and the importance of community practice combine to form new features, these features confirm the increasing tendency of American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 139 www.americanjournal.org contemporary discourse to adopt democratic principles and to raise the importance of participation in issues of public interest and not limited to Eat it on the toast. Before determining the role of the private sector in human development, and developing a strategy for the development of this sector, here it is necessary to shed light on the weaknesses and problems facing the organizations of this sector and work to address them in order to perform the desired function and contribute effectively to creating a state of community harmony, there are a number of important weaknesses that affect their existence and the expansion of their work, and these points are concentrated as follows: 1) The pattern of the relationship between private organizations, which is largely going according to the individual desires of those in charge of them, which is a weakness in the institutional structure faced by organizations, as the structure far from the organizational form and decision-making may allow the person in charge of domination and exclusivity, which makes the whole institution subject to his personal desires and ambitions. 2) It lies in the lack of independence of these organizations in fact, as most of the founders of the organizations or their members were affiliated with certain political parties, and even if they were independent from their parties, they still carry the same ideological ideas adopted by this or that party, and fall into the same mistakes that parties face in terms of the ability to expand the effective mass base, and work in a state of internal democracy, This sometimes leads to a state of political inindependence that reduces public turnout and produces a weakness in the effective structure of this or that organization. 3) The third weakness, and may be the most important in the effectiveness of these organizations, lies in the absence of coordination, cooperation and organization to unify efforts among them, as they are in one way or another subject to the principles of ineffective competition in the fields of work and constitute a real obstacle in the process of bringing cadres, skills, technical and administrative experts to carry out the activities of private organizations, all of this hinders their development, in addition to not presenting themselves as tributaries in the development process, as they lack the absence of strategic planning for development processes, and the lack of trust among them. and between them and the Government, leading to a lack of partnership that would revitalize the role of organizations. These weaknesses disperse efforts to achieve the desired goals and weaken the expected effective role of private organizations as lobbyers for influencing public policies.. There are a number of factors that are considered as constraints that limit the development of the private sector in human development and can be divided into two types. (Massoud and Karim, 2011, 7): 1) Financial Restrictions: The interest paid by private sector organizations in order to obtain the necessary capital for their activity, which is known as (capital costs), is one of the most important elements that affect the process of financing them and then in their growth and development, based on their main role in determining the possibility of expanding investments or not. Another financial constraint faced by private sector organizations is financing through borrowing from the banking sector, which is known as (lending policy), which increases the weight of the possibility of private sector organizations obtaining the necessary funding to pursue and develop their development activities. In this regard, many private sector organizations that, by virtue of their investment projects, wish to finance long-term loans due to their inability to enter the capital market due to their lack of the required conditions or high costs, find it difficult to obtain what they require because the lending policy of many American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 140 www.americanjournal.org banks is mainly based on short-term financing due to their need for liquidity on the one hand and to avoid the risks of non-payment on the other hand, which contributes to more of financing restrictions on the private sector, which leads to a weak pace of growth and development. In addition to this, there is another financial constraint that guides private sector organizations in our societies, which is the weak development of capital markets, as the lack of sufficient development of capital markets narrows the financing opportunities available to private sector organizations in a way that leads to poor performance in human development. 2) Non-financial restrictions: There are similar to financial restrictions a number of other non-financial restrictions that negatively affect the development of the sector, government procedures and legislation that govern the activity of the private sector in its various aspects, which is known as (business climate) have a very significant impact on the status of the private sector and its performance in human development. According to the World Bank, the state of the business climate is viewed from a combination of indicators that determine the ease of performing economic and social activities in each country, and they are divided between "statutory ranking indicators" and "time and cost indicators" (World Bank, 2011, 11). Therefore, the deterioration of the business climate through the indicators referred to has a significant impact on the development of the private sector in human development, as this leads to the alienation of investors, whether local or foreign, which limits the effectiveness of private sector organizations in human development. In addition, there is another non-financial obstacle that has a negative impact on the development of the private sector in our societies and reduce its positive impact on the development of human resources, which are income-generating activities that are not recorded in the accounts of gross domestic product, which is known as (parallel market), (Dalal, 2008, 2), and the negative impact of the parallel market on the development of the private sector is evident in being an illegal competitor in economic development and human development, as it does not bear any costs, which helps to discharge its products. Its services are at lower prices, unlike private sector organizations that operate in an official and legal manner, resulting in incurring several costs, the most important of which is paying taxes, which contributes to the high prices of their products and services in a way that makes them in a state of non-competitiveness, in addition to the violation of property rights by the parallel market, which limits the desire of investors to enter the market and take risks because they know in advance that there is no fair climate for competition in a way that limits the expansion of the official private sector presence in human development. Another obstacle is the lack of openness to the world by the state with regard to the economy and development under the pretext of protecting the local economy, and this negatively affects the development of the local private sector due to its deprivation, i.e. the absence of experience and advanced technology that characterizes the foreign private sector. In addition, the absence of the foreign private sector means the absence of competition is mainly related to the extent of the development of the competition system in economic life, as it is the main motivation for organizations to develop through the processes of creativity and innovation in various aspects, which reflects positively on their performance in human development, and on this basis, it is necessary to reduce monopoly operations and work to liberalize trade in a way that enables the expansion of the American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 141 www.americanjournal.org market and then open the way for competition and what is reflected in the high efficiency in Economic and development performance of the private sector. Second: The role of the private sector in human development. Human development is concerned with providing the material and moral requirements of the human being, but this will only be achieved through economic growth, which is concerned with "the increase in the country's GDP during a certain period of time", so human development is the goal and economic growth is the means to achieve it (Wajih, 2021, 34). The human development, expresses those activities that raise the capabilities and skills of the human role for humanitarian purposes, that is, in order to increase its capabilities to face the difficulties of life, it looks at the human race as a human being and thus focuses efforts to develop it for itself, , where efforts are evaluated within the framework of human development with humanitarian indicators indicating the extent of improving human life and well-being, such as the level of education, standard of living, unemployment rate... Etc. (Wahiba, 2011, 23). THE ECONOMIC AND POLITICAL TRANSFORMATIONS THAT FOLLOWED THE END OF THE COLD WAR AND THE DISINTEGRATION OF THE SOCIALIST SYSTEM, AND THE ACCOMPANYING DEVELOPMENTS RELATED TO GLOBALIZATION AND ITS ECONOMIC, POLITICAL AND SCIENTIFIC MANIFESTATIONS, HAD TO CRITICALLY RECONSIDER THE CONCEPT OF DEVELOPMENT, SO THE CONCEPT OF CONTINUOUS SUSTAINABLE DEVELOPMENT (HUMAN DEVELOPMENT SUSTANABLE), WHICH HAS BEEN FOCUSED ON HUMAN DEVELOPMENT REPORTS SINCE THE EARLY NINETIES OF THIS CENTURY, TO FORM A COMPLEX CONCEPT THAT TAKES INTO ACCOUNT PREVIOUS DEVELOPMENT EXPERIENCES IN BOTH THEORETICAL PARTS. and applied. However, this does not mean that the concept of sustainable human development is final and complete and involves solutions to complex development problems, the forms of (poor growth), which many societies are witnessing today, are numerous, including: (ruthless growth, growth without a future, mute growth, growth without roots, and finally growth without jobs), perhaps the crisis witnessed by Southeast Asian countries since mid-1997 and lost 30 50 • of the values of their currencies, which extended to include Russia and Venezuela, perhaps draw serious question marks On the opportunities and future of development in the era of globalization (GLOBALISATION), until the emergence of a more comprehensive concept of socio-economic development that takes into account the reflection of development policies on the structures of society and its economic activities, leading to the concept of sustainable development adopted by the United Nations Development Program (UNDP) in its annual reports on the reality of development in the world. THE HUMAN DEVELOPMENT REPORT FOR THE YEAR 1996 EXAMINES THE NATURE AND DEGREE OF THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND HUMAN DEVELOPMENT, AND IN AN UNPRECEDENTED GESTURE, THE CONCEPT OF HUMAN DEVELOPMENT IS ACCURATELY DEFINED AS EXPANDING PEOPLE'S OPTIONS BY PROVIDING THEM WITH OPPORTUNITIES IN THE FIELDS OF WORK, INCOME, HEALTH, EDUCATION AND POLITICAL RIGHTS THAT INTENSIFY IN THE CONCEPT OF American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 142 www.americanjournal.org PARTICIPATION, BY PROPOSING THE INDEX (HUMAN DEVELOPMENT INDEX)), a guide to measuring human development, i.e. linking economic growth to a fundamental goal, which is to improve people's quality of life, ensure a safer distribution of income and protect the environment. (Abu Halaweh, 2014, 5). The report emphasizes the dialectical link between economic growth and human development, so that growth is a means and development is an end, in this context the report emphasizes the importance of participation between governments and private sector organizations in issues of managing this process. The changes taking place in the private sector in many Arab countries are an indicator of a number of social, economic, and, to a lesser extent, political transformations and changes that have begun to take place in these countries, and these changes appear in part as an impact of global trends that have highlighted the rising weight of the third sector and the importance of private organizations in dealing with the problems of population, the environment, disadvantaged and less fortunate groups, in addition to human rights, women and other issues. But what are the factors and reasons that contributed to changing the position of the private sector in our societies, and what is the size of the new role of this sector? After careful analysis of the social and economic factors underlying this transformation, there are two groups of factors: 1) The development policies adopted by countries in our societies, including their failures and successes, and the gaps and shortcomings they have revealed. 2) Changes in social structures and population structure associated with new demands and needs resulting from these developments. The fiscal and monetary policies adopted by the majority of countries in our societies to confront inflation and budget deficits through market liberalization and the trend towards privatization and structural economic reforms have resulted in a decrease in government spending on public services in the health, education and social welfare sectors, which has led to the emergence of the importance of the role of the private sector in covering and satisfying part of the demands of the population, which is natural and necessary in that it complements the role of the state on the one hand, in addition to the growing role of the private sector on the other. In parallel with the economic and social policies that resulted in the decline of the role of governments in spending on public services and social welfare, the population in these countries has tended to increase continuously, which is considered one of the highest rates in the world, this means that there are new population needs and demands that governments cannot satisfy, in addition to the exceptional circumstances that some of our societies have witnessed due to wars and environmental and natural disasters. In which an important role has emerged for private sector organizations in meeting the needs American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 143 www.americanjournal.org of the population, as they responded with high flexibility to the problems and changes witnessed by these communities. A comparison between countries in our societies that have pursued a policy of planned and centralized economy and countries that have adopted economic policies based on a market economy and economic pluralism shows that the first group of countries with a command economy, although they were able to provide economic infrastructure (industrial and agricultural projects, roads and services), but they did not succeed in investing them with the standards of economic efficiency, have reached a crisis of blockage of horizon and a slowdown in actual growth due to bureaucracy, red tape, corruption, restriction of initiative and curb investments. This calls for economic reforms, restructuring, privatization and the revitalization of private initiatives. (Sukkar, 2000, 2). As for the second group, most of its countries have suffered from the problem of exacerbating the misdistribution of wealth and income as a result of privatization measures, financial reforms and pressure from the IMF and the World Bank, which has exacerbated the phenomenon of unemployment and the high rate of poverty, which requires a review of the negative social effects of these development policies and work to find a difficult balance between economic liberalization policies and the development needs of society and the requirements of social justice, noting the differences between these countries within the previous two groups. Hence, it is clear that the interest in private sector organizations as a component of civil society in developing countries is inseparable from thinking about the two central issues facing these societies: (the issue of development and the democratic question). Third: The strategy for the development of the private sector in our societies. The process of developing a specific strategy aimed at developing the private sector in human development through a number of mechanisms and procedures must start first of all from taking into account the difficulties and obstacles facing the process of development of the private sector, which we referred to in the first axis of this study, which allows the development of a sound and effective perception of the mechanisms that must be provided to develop the position of the private sector and its performance in human development. On this basis, a number of mechanisms that constitute the optimal strategy for the development of the private sector can be highlighted in their interdependence, as follows. (Karim and Massoud, 2011, 15): 1) Providing financing to achieve investments in the private sector: What any strategy aimed at developing the private sector requires is to work on developing mechanisms that allow the provision of financing, which is the main driver of private sector activity, so that its availability, both in terms of size and type, provides more opportunities for investments. The process of providing the necessary financing for private sector activity is achieved through the following: American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 144 www.americanjournal.org A) Mobilizing savings: It is imperative for the banking sector to develop the process of mobilizing savings in a way that allows providing sufficient financing capacity for economic activities, as this requires first of all developing the structure of the banking sector by opening the way for competition between banks, whether local or foreign, in a way that reflects positively on their banking services, and pushes for better performance in the process of bringing savings, which would positively return to the financing process organizations in general and private sector organizations in particular. B) Helping small and new enterprises in the market: Small and new projects in human development suffer from the difficulty of obtaining financing, whether due to the high costs of loans or their inability to enter the capital market, and this requires flexibility in financing procedures for small projects by banks, which are the only source of them to obtain financing, as it is necessary to work to postpone payment periods or reduce interest to ensure that they obtain sufficient liquidity to develop their investment and production activities, especially since they do not start to achieve profits except Years after the beginning of activity. (Inter American development bank; private sector development strategy, 2004, 23). C) Capital Markets Development The capital markets play a major role in financing investment projects increases the importance of interest in developing them and activating their position in the process of financing the economy, as they contribute to providing financing, whether it is local financing or external financing, debt financing (bonds) or ownership financing (shares), in addition to playing a major role in the development of the performance of private organizations dealing in them as they emerge as a reflective mirror of human development, as each organization requesting funding in it must be distinguished by the performance of Good economic and financial and comfortable so that it can dispose of its securities offered for circulation, whether bonds or shares, and obtain the necessary financing, and this is in the interest of developing the performance of the private sector. Therefore, it is necessary to work on developing capital markets through the development of appropriate texts and legislation regulating their activities, limiting the presence of public sector organizations by privatizing them, facilitating the procedures for private sector organizations to enter the capital markets, in addition to setting incentives that would attract external capital that contributes to the development of trading operations in a way that increases their depth and efficiency, which will reflect positively on the mechanism of financing the private sector in the local economy. (10) Caribbean development bank; On a new private sector development strategy, working paper , 29.) 18. D) Public-Private Partnership: The partnership between the public sector and the private sector enters into the modern trends to develop the private sector and enhance its position in human development, as the number of countries that have chosen to move towards partnership between their public and private sectors in order to open another area for the expansion of activity for the private sector, which is the infrastructure sector and related services, which is usually unique to the state through its public organizations. Some experience indicates that economic infrastructure projects are the most attractive for public-private partnership compared to social infrastructure projects (health and education) for the following reasons: American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 145 www.americanjournal.org ü Economic infrastructure projects enjoy high profitability rates that increase the attractiveness of the private sector ü Attractiveness of usage fees more in economic infrastructure projects. ü Infrastructure projects enjoy larger markets compared to social infrastructure projects. In addition to the fact that the partnership between the public and private sectors provides new markets for the development of private sector activity and the resulting positive effects on economic growth rates and human development, it allows avoiding the postponement or cancellation of the construction of these infrastructures if the State, which is in charge of building it, is not able to provide its financial allocations, and the negative effects that this may have on the economy and society due to the extreme importance that infrastructure enjoys in the development of human development. The partnership between the public and private sectors would ease spending constraints and budget deficits on the one hand, and on the other hand, it could save infrastructure expenditures and direct them towards other uses in need of financing, which the state would pay and bear its financing, which would positively benefit the economy and society. (Hemming et al., 2007, 8). 2) Providing a conducive and stimulating business climate: One of the most important mechanisms that must be achieved as a main condition in building a strategy for the development of the private sector is related to the need to provide the best conditions under which the private sector is active in economic life, which constitutes the so-called business climate, as the Arab Investment Guarantee Corporation defines it as the overall legal, economic, social and political conditions in which the environment in which investment activity takes place, where the components of this environment change and overlap among themselves to a large extent, which makes it difficult to highlight Their effects are individual. (Benhine, 2008, 2). On this basis, it is necessary to work to provide an environment that helps and stimulates activity, based on the following elements: A) Consultation between the private and public sectors: As the state plays a major role in providing the appropriate climate and conducive to growth and development in performance through a set of policies that it approves in this context, whether development policies or economic policies, legislation and legal provisions that reflect the atmosphere surrounding the activity of the private sector in economic life, but this does not give it the ability to clearly and properly visualize how to build and provide the appropriate environment and stimulate performance except with the participation of the private sector, which is concerned with these procedures and mechanisms, as the procedure Consultations between government bodies concerned with providing an appropriate climate through the policies and procedures set on the one hand and the private sector concerned with activity and interaction in economic life in light of the procedures and mechanisms approved by government bodies that would reach the construction of an appropriate and American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 146 www.americanjournal.org stimulating activity environment for initiative, which will reflect positively on the status and role of the private sector in human development. b) Develop the appropriate legislative and legal framework: The legislative and legal framework contributes to creating initiative and stimulating human development through the confidence and tranquility it provides in the economy and society, as it affects productive or service organizations directly through its organizational and administrative aspects, or indirectly through its effects on various sectors that are closely related to the activity of the private sector such as the banking sector or the insurance sector, and therefore it is necessary to work on developing the appropriate legal and legislative framework for the performance of the private sector, which It is necessary to keep pace with economic developments locally and abroad in order to avoid any imbalances or negative repercussions. With regard to the organization and functioning of the private sector's activity, we find procedures for starting the activity and establishing the economic unit, procedures for obtaining licenses, laws related to non-payment, laws related to the conclusion of contracts, which must be simplified and facilitate their performance in order to avoid further obstacles in light of the growing phenomenon of the parallel market in global economies, as this would create a system of competition on the one hand and on the other hand facilitate entry into the market for small enterprises in a way that reflects positively on the activity of the private sector. As for the aspect related to the nature and size of the private sector's activity, it is related to legislation and provisions related to the process of entry and exit of capital and the benefits resulting from it, as well as the tax burdens borne by the private sector and laws related to export and import, as it is necessary to work to provide a legal and legislative environment that stimulates risk and expansion of activity based on the confidence and initiative provided by those legislative and legal texts, by increasing the volume of private investments, whether local or foreign, and it is necessary to provide Advantages and reducing the burdens and costs on capital to ensure greater attraction that would reflect positively on the performance and development of the private sector. C) Political stability: Political stability is a strong supporter of the presence of the private sector in human development and its development through its great role in attracting private investments, whether local or foreign, as it reflects higher confidence and greater assurance regarding the possibility of achieving gains in human development, as political instability increases the state of uncertainty and uncertainty regarding economic conditions, which limits the initiative and desire of the private sector to invest and expand. Regarding the relationship between political stability and private investment, a study by R.S.) Basi) that political stability affects investment decision-making by 63%, as indicated by the Arab Investment Guarantee Corporation in its report on the stimulating elements of private investment in a number of Arab countries, that the availability of stimulating elements for private investment in a country coincides with its enjoyment of political and economic stability as a key factor in the development of private investment, (Shoaib and Moulay, 2009, 142). American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 147 www.americanjournal.org D) Human Resources Development: Human resource development is considered as an investment process for human capital, as it is defined as the process of developing the skills, capabilities and knowledge of the workforce through training and development processes, which contributes to raising its contribution to the production process to the maximum extent possible. (Wahiba, 2011, 12). The development and development of human resources contributes to increasing efficiency in the performance of the private sector, as this allows the development of management systems and management methods and enables the development of renewal and innovation processes that would create a continuous dynamic in the investment and production processes, allowing the development of the position of the private sector and enhancing its contribution to human development, unlike if human resources are not characterized by development, this will reflect negatively on the development of the private sector, which in light of the extension of globalization and the intensification of competition, it will not have It is possible to develop and expand its activities due to the weak development of human resources at its level and their failure to keep pace with modern trends in organization and innovation. There is a vivid example in the development of human resources to support and develop the private sector in the Kingdom of Saudi Arabia, which is (the experience of the Saudi Human Resources Development Fund), the establishment of this fund for human resource development with its independent legal personality administratively and financially, came as a result of a clear vision of a strategic Saudi goal that poses an unprecedented challenge to reach, which is the localization of jobs in the private sector, so its establishment came as one of the effective mechanisms to contribute to the provision of qualified Saudi cadres with science and well-trained national youth of both sexes so that it is in The level of acceptance of this challenge and achieves reaching the strategic goal that will bring social, security, and economic benefits to the country, by enabling Saudi youth to possess the knowledge and skills necessary to fill jobs in the private sector, which will result in positive effects on the national economy and human development. The experience of the Human Resources Development Fund in the Kingdom of Saudi Arabia is a worthwhile experience, as the Fund was entrusted with essential tasks related to everything that concerns applicants in the private sector, and it also found a strong support from the state and provided it with all the aids of work, especially financing. (Al-Ahdath newspaper). By putting these experiences in mind to transform into a knowledge-based economic society in the twenty-first century using high technology and information and to complement the leading role played by the national economy through the development of human resources by qualifying and training them to meet the functional needs in the labor market of the national workforce, by developing a comprehensive strategy to expand the provision of services to the private sector to achieve the goals of developing this sector and increasing the effectiveness of the human development process. Conclusions and recommendations: Similar to its contribution to economic growth, the private sector plays a major role in reducing poverty based on the jobs it provides and high incomes, as its development contributes to the participation of the poor in economic growth and thus their benefit from jobs that provide them with incomes that enable them to improve their living standards and get them out of poverty, and this in itself is considered human development. American Journal of Business Management, Economics and Banking Volume 15 August, 2023 P a g e | 148 www.americanjournal.org On this basis, the development of the private sector is a very important issue, both from its economic and social side, but the obstacles and failures that limit the development of the private sector require the development of an optimal strategy that reflects the correct understanding and perception of the mechanism of developing the private sector, which must be based on the following axes, which collectively constitute the main framework on which any strategy must be based in the process of developing the private sector in human development, namely: 1) The need to provide an appropriate and stimulating environment that helps to carry out investment activity, through a number of measures that reflect the best economic, legal and political conditions for private sector activity. ü Review legislation and laws regulating the labor market and consider the issues and aspirations of the private sector in its various sectors in this regard. ü And the need to create a partnership between the public and private sectors and reduce the differences between them, which reflects a kind of integration in human development that serves both sectors, and establishes a dynamic growth for the private sector, which is thus able to obtain wider opportunities to expand its activity and thus enhance its position and performance for the benefit of human development. Propose policies, programs and means to develop recruitment and training systems and assist the private sector to achieve the requirements and policies of appointment and training to serve economic development plans as a means of developing this sector to provide more effective services through the implementation of these policies and linking them to the goals, policy and needs of the national economy within the framework of human development plans. 2) Providing sufficient financing to achieve investments, whether through loans to develop the banking sector, or through the development of Russian capital markets, which are a major catalyst for the development of the performance of the private sector. 3) Urging the private sector to grant job opportunities and actively participate in activating the role of people with special needs in order to benefit from their energies and integrate them into the labor market. 4) Discuss the problems that hinder private sector organizations in increasing their commercial activity due to the national and expatriate workforce and develop solutions to address these problems to achieve development and prosperity, which will reflect positively on human development. 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