Green light for crown prince-led Saudi privatization program

Updated 25 April 2018
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Green light for crown prince-led Saudi privatization program

  • The Privatization Program is one of 12 key elements of the Saudi Arabia’s Vision 2030
  • The program is aimed at increasing job opportunities for Saudi nationals

RIYADH: Saudi Arabia’s Council of Economic and Development Affairs on Tuesday approved the Privatization Program that is one of 12 key elements of the Kingdom’s Vision 2030. 

The program is aimed at increasing job opportunities for Saudi nationals, attracting the latest technologies and innovations, and supporting economic development.

It encourages both local and foreign investment in order to enhance the role of the private sector, with government entities adopting a regulatory and supervisory role. The aim is to increase the private sector’s contribution to GDP from 40 percent to 65 percent by 2030. 

The program will aim to reach its objectives through encouraging the private sector to invest in establishing new schools, universities and health centers, while the government pursues its organizational and supervisory role in health and education.

The privatization program aims to benefit from previous success stories, with the private sector’s collaboration in the development of infrastructure, and its involvement on a large scale in sectors such as energy, water, transport, telecommunications, petrochemicals and finance.

The program sets out a series of objectives in three areas: Developing a general legal framework for policies related to privatization; establishing organizational foundations and dedicated institutions to execute the policies; and setting a timescale for their delivery. 

The Council of Economic and Development Affairs is headed by Crown Prince Mohammed bin Salman.


Saudi Red Sea project to offer visa on arrival for tourists

Updated 27 May 2018
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Saudi Red Sea project to offer visa on arrival for tourists

  • Saudi Arabia’s Red Sea Project has been registered as a standalone company
  • The venture will be will be headed by John Pagano, former director of London’s Canary Wharf business zone

LONDON: Saudi Arabia’s Red Sea project will offer visas on arrival for overseas visitors following the creation of a company to deliver the ambitious project.
The project marked a milestone on Sunday with its incorporation as a standalone closed joint-stock company, The Red Sea Development Company (TRSDC), wholly owned by the country’s Public Investment Fund (PIF).
The company, which in October announced Virgin Group founder Richard Branson as one of its board members, on Sunday said it had recruited John Pagano, the former managing director of development for the UK’s Canary Wharf Group as its chief executive.
The newly-incorporated company will now move forward with the creation of its Special Economic Zone, with its own regulatory framework, it said in a statement.
The framework will be separate from the base economy, with a special emphasis on environmental sustainability, and will offering visa on entry, relaxed social norms, and improved business regulations.
“The destination will provide a unique sense of place for visitors and offer nature lovers, adventurers, cultural explorers and guests looking to escape and rejuvenate, a wide range of exclusive experiences, combining luxury, tranquillity, adventure and beautiful landscapes,” said Pagano.
The first phase of The Red Sea Project — which will occupy an area greater than the size of Belgium between the cities of Al-Wajh and Umluj — will include hotels and residential units, along with a new costal town, an airport and a marina, and is due for completion by late 2022, the company said.
Authorities hope the project will create as many as 35,000 jobs and contribute SR15 billion ($3.99 billion) to the local economy.
The project, unveiled last July by Crown Prince Mohammed bin Salman, is one of the key developments in Saudi Arabia’s strategy to develop its tourism sector, alongside Qiddiya, an entertainment resort near Riyadh that will be two-and-a-half times the size of Disney World.
The country’s Vision 2030 economic development plan is targeting the creation of 1.2 million new jobs in the Saudi tourism sector by 2030.