Al-Jadaan expects to raise $38 billion through asset sales and $16.5 billion through public-private partnerships…reports Asian Lite News
Saudi Finance Minister Mohammed Al-Jadaan said that the Kingdom is seeking to raise about $55 billion over the next four years through its privatisation program as it looks to reduce its budget deficit, it was reported.
Al-Jadaan expects to raise $38 billion through asset sales and $16.5 billion through public-private partnerships, he told the Financial Times, Al Arabiya reported.
The privatisation law will be enacted in Saudi Arabia in July of this year.
According to Arab News report, the Saudi government has identified 160 projects in 16 sectors, including asset sales and public-private partnerships through 2025.
Asset sales shall include government-owned hotels, television broadcasting towers, and cooling and water desalination plants.
The plan does not include the Public Investment Fund (PIF) entities or the sale of other assets of Saudi Aramco.
Last year, Saudi Arabia sold all its flour mills to a group of local and international investors for around $1.5 billion, with HSBC advising on the deals.
In mid-March the Council of Ministers endorsed the privatisation bylaw, which has been described by Minister Mohammed Al-Jadaan as pivotal in creating investment opportunities for the private sector and boost its contribution to the GDP to enhance the sustainability of the Kingdom of Saudi Arabia’s economy.
The new bylaw seeks to bolster the public-private partnership, transfer ownership of government assets, liberate state-owned assets for the private sector, allocate specific government services, and expand private sector participation in infrastructure and service projects.
The privatisation bylaw aims at creating a favourable business climate essential for improving the quality of services offered to citizens and residents as well as ensuring the necessary flexibility for the privatization projects and the public-private partnerships.
Saudi Arabia reported 1,067 new coronavirus cases during the past 24 hours, according to the bulletin of Saudi Ministry of Health.
The ministry added that the total number of confirmed cases now stand at 440,914 and the total recoveries at 424,690. Twelve new deaths were also reported, bringing the total death tally to 8,975.