Saudi Arabia expects to receive $ 55 billion from privatization program

The Saudi Arabian government is hoping to raise $ 55 billion over the next four years from its privatization program. This was reported to the Financial Times by the country’s finance minister, Mohammed al-Jaadan. According to him, the kingdom has already identified 160 projects in 16 sectors, which it intends to transfer to private hands in whole or in part through direct sale of assets or the creation of public-private partnerships.

According to the minister, the state intends to outsource the management and financing of projects and services in the field of healthcare. Also on the list are urban transport and airport services, school buildings, desalination facilities, television transmission towers, hotels and other projects.

“It is no longer a matter of choice. This is a requirement of the central government, – the minister noted. – These services and these facilities should no longer be managed by the state. According to him, such measures will transfer the privatization program to a new stage. According to the minister, the state plans to receive $ 38 billion through the direct sale of assets and $ 16.5 billion through the creation of public-private partnerships. This, the minister says, should help plans to reduce the budget deficit, which last year amounted to $ 79 billion, which corresponds to 12% of the kingdom’s GDP.

About the economic situation in Saudi Arabia – in the publication of “Kommersant” “Arabia is drowning in cheap oil.”

Andrey Kelekeyev