Hani Alsayegh, Vice President of Strategic Marketing & Knowledge Management at NCP
The National Center for Privatization & PPP (NCP) targets the privatization of 17 sectors, Hani Alsayegh, Vice President of Strategic Marketing & Knowledge Management, told Al Saudiya TV.
The amended rules issued by the Cabinet last March approved the privatization plans of 13 sectors. Four additional ones were approved, bringing up the target sectors to 17, Alsayegh added.
Moreover, 85% of the privatization program will be implemented under public-private partnership (PPP), Alsayegh noted, adding that privatization usually takes place through PPP or asset sale.
The privatization drive targets the sectors of health, environment, water and agriculture, municipalities, housing, energy, industry and mineral resources, public transportation, interior, communications, education, Hajj and Umrah, human resources, transport, sports, communication and information, media, finance and the State Properties General Authority (SPGA).
The Saudi privatization plan dates back to the 1970s, starting with Saudi Basic Industries Corp. (SABIC), Saudi Electricity Co. (SEC), some banks, Saudi Telecom Co. (STC), Saudi Arabian Mining Co. (Maaden) and The Company for Cooperative Insurance (Tawuniya).
The privatization led to the rise of solid entities, improving services, operating efficiency and jobs, Alsayegh added.
The program aims to raise the private sector contribution to the Kingdom’s gross domestic product (GDP) from 40% to 65%, he concluded.
Meanwhile, the Private Sector Participation (PSP) law will apply to privatization processes as of mid-July, Alsayegh noted, pointing out that 16 plans were implemented since 2018.
Target opportunities for privatization are first studied for a period of six to 36 months. The private sector is required to study the plan and submit bids within six to 12 months, he explained.
The Kingdom is considering 160 opportunities, and 100 privatization targets, which will be assessed until 2025, Alsayegh noted.
Saudi Arabia offers these opportunities to local and foreign investors. However, it gives a larger opportunity for local content, and seeks to benefit from foreign investors in technical experience or higher finance, Alsayegh concluded.
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