Here are key targets of Saudi Arabia’s privatization program

The Saudi Council of Economic and Development Affairs on Tuesday approved the Kingdom’s privatization program, which targets public-private partnership (PPP) investments worth SAR 24-28 billion.

Argaam has compiled a list of the main targets under the privatization program for 2020:

- SAR 35-40 billion non-oil revenue from privatization;

- 10,000 - 12,000 jobs to be created;

- SAR 60.99 billion in non-government investments;

- SAR 25-33 billion savings in capex and opex from PPP;

- SAR 13.83 billion worth of contribution to GDP;

- SAR 40.06 billion worth of impact on balance of payments;

- SAR 4.8 billion contribution to local content;

- SAR 8.34 billion impact on consumption;

- A total of 14 PPP contracts at a total value of SAR 28-24 billion;

- Operation of ports will be transferred to companies with cargo waiting time of 3-5 days;

- Ras Al Khair plant privatization.

However, according to a government document, the privatization initiative may face several challenges, including:

- Lack of related expertise and skills;

- A shortage in the number of specialized local firms;

- Lack of the legislative framework required to implement privatization.