Saudi privatization program targets billions of dollars by 2020
Saudi Arabia aims at generating a lot of money, in fact, $200bn by 2030, and the way it is doing this is by privatizing previously government-owned entities.
The Kingdom just transferred the rights to one of its more sensitive sectors to private contractors.
Saudi authorities on May 1 ordered the handover of 25 state-run schools to be run by private sector companies.
The official Saudi Press Agency reported that the “Independent Schools” initiative, is now to be implemented.
The education ministry announced in January 2018, a tender for a long-term concession to design, build, finance, and maintain facilities for 60 schools in Jeddah and Mecca, from kindergartens to secondary schools.
The initiative targets 14 public-private partnership (PPP) and investments worth approximately $6 billion to over $7bn.
Saudi Arabia aims to generate $9 billion to $11 billion in non-oil revenues from its entire privatization program by 2020 and create up to 12,000 jobs, according to a document published by the official Saudi Press Agency (SPA) on Tuesday.
It includes the corporatization of Saudi ports and the privatization of the production sector at the Saudi Saline Water Conversion Corp (SWCC) and the Ras Al Khair desalination and power plant, the document showed.
It targets $16 billion in non-government investments by 2020 with a goal of contributing up to $4 billion to gross domestic product and up to $9 billion worth of savings in the government’s capital and operating expenses from PPP investments.
the government also plans to privatize the national football league, and a number of flour mills.
It will also work on corporatizing ports, privatizing some services in the transportation sector, and transform King Faisal Specialist Hospital and Research Center into a non-profit organization.
The full program has over 100 potential initiatives in more than ten sectors.
What are these sectors?
Ten sectors targeted in Privatization
According to the Saudi Gazette, these are the 10 sectors in line for privatization:
4-“Labor and social affairs.”
5-“Energy industry, and mineral resources.”
7-“Transport and aviation.”
8-“Environment, water, and agriculture.”
9-“Haj and Umrah.”
10-“Communications and IT.”