Saudi Arabia’s government approved the listing of government assets planned for privatization on its stock market, according to reports.
“Assets, sectors and services planned for privatization shall be listed in Saudi stock market through direct or indirect initial public offering,” a statement on state news agency SPA said. “The indirect IPO for such assets will be done through setting up companies that own the government stakes in these projects,” the statement added, according to Reuters.
Crown Prince Mohammed bin Salman.
The announcement marks a delivery on one of the key programs of the Kingdom’s Vision 2030 social and economic reform plan. The Privatization Vision Realization Program (PVRP), part of the Vision 2030, “enhances the role of the private sector in the provision of services and the availability of government assets,” the government said.
That program has two main goals: to unlock state-owned assets for the private sector, and to privatize selected government services.
The PVRP has goals set for 2020, including to add SAR 13-14 billion ($3.4-$3.7 billion) to GDP, create 10,000-12,000 new private sector jobs, to achieve total government revenues from asset sales (under the guidance of the Supervisory Supervisory Committees) of SAR 35-40 billion ($9.3-$10.6).
[Click here to download and view a copy of Vision 2030’s Privatization Book]
“This will improve in general the quality of services provided and contributes to the reduction of costs. Furthermore, it will strengthens the government’s focus on its legislative and regulatory role, in line with the vision 2030. In addition, the program seeks to attract foreign direct investment and improve the balance of payments,” the Kingdom said.
The approval was given in a virtual meeting on Tuesday, as Saudi Arabia continues with measures to prevent the spread of the coronavirus within its borders.
