Saudi Arabia closes six privatization deals worth $3.5 bln

Saudi Arabia has completed six public-private partnership (PPP) deals in the past two months, worth $3.5 billion, and plans at least 23 more by 2022,  Turki Al-Hokail, CEO of the National Centre for Privatization and Public-Private Partnership (NCP) told Reuters on Tuesday.

"It's better for the process to take a little bit longer to ensure it is done properly. We are gearing up for a lot of transactions either in the process or in the pipeline and we want to make sure the process is done correctly," he added.

"The privatization program has so far awarded six projects in two months and is committed to its timetable and initiatives as per the delivery plan, Al-Hokail noted.

The six projects completed include four water projects, one in healthcare and one in transport.

According to Al-Hokail, 50-70 percent of the companies involved in each of the six deals so far were foreign and foreign banks had loaned 70-80 percent of the financing for each deal.

Meanwhile, plans to sell flour mills are moving ahead.

“The request for proposals should be launched in several months, with companies from the United States, India, the Netherlands, Spain and other European countries among the more than 10 consortia that have pre-qualified,” he added.