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The Saudi Council of Economic and Development Affairs on Tuesday approved the Kingdom’s privatization program, which aims to generate SAR 35 billion-40 billion ($11 billion) in non-oil revenue by the year 2020.
The private sector will be encouraged to provide certain services and build assets in some sectors, namely educational buildings and new medical cities under the new program, according to a government document seen by Argaam.
The privatization plan focuses on: 1) Developing a general legal framework for policies related to privatization; 2) Setting up organizational institutions to implement such policies; 3) Developing a timeframe for implementing the program in line with Saudi Vision 2030.
In its first phase, the program targets the privatization of 10 key sectors: healthcare, housing, education, labor and social affairs, energy, industry and mineral resources, municipalities, transport and aviation, environment, water and agriculture, religious tourism, and communications and IT.
Operation of ports will be transferred to companies, while King Faisal Specialist Hospital and Research Center will be converted from a public entity to a non-profit organization, the document said.
More job opportunities will be provided for nationals, and the private sector’s contribution to the Kingdom's gross domestic product (GDP) will be increased from 40 percent to 65 percent by 2030.
Other indirect objectives in the privatization scheme include easing access to healthcare services, developing an advanced capital market, attracting foreign direct investment, establishing and improving the performance of logistics centers, and enhancing SMEs contribution to the economy.
The program is looking to diversify government revenue sources, develop a more effective government structure, enhance performance of government entities, and improve quality of services provided to citizens.
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