RIYADH, 9 May 2005 — The Minister of Economy and Planning Dr. Khaled Al-Gosaibi opened a seminar on “The Jordanian Experience in Privatization and Potential Investment Opportunities in the Privatization Transactions of Jordan” at the Riyadh Chamber of Commerce and Industry here yesterday.

The session was presided over by the Chairman of the Saudi Council of Chambers of Commerce and Industry, (SCCI) Abdul Rahman Al-Jeraisy.

The minister told the delegates that in the 90’s, developed countries earned $316 billion from privatization. The Middle East countries, however, has privatized only three percent of its companies. “Privatization does not mean that the government will give up its duties, simply focus only on “steering its economy to the top”.

He said that the primary goal of privatization was to ensure a competent economic market able to face the challenges globalization imposes on nations. One of globalization’s main goals is to achieve economic freedom worldwide.

Twenty companies in the Kingdom are under the process of privatization. The World Bank and the EU have observed that Jordan’s Privatization Program is a successful model that should be followed in the region.

The Chairman of WAMAD Information and Technology Services, Rashed Al Mugait said, “Privatization projects have become the only alternative for economic development.” Saudi Arabia and Jordan must exchange information because, “Both nations have reached similar phases in the strategies and methodology in the field of privatization,” Al-Mugait said.

“Jordan’s ambitious privatization program was launched in the second half of 1996,” Al-Mugait continued. “Jordan sees Privatization Program as perceived in Jordan as the integral part and the cornerstone for sustainable economic development.”

“There are extensive efforts to encourage the private sector to undergo new responsibilities in the development of the country. Governments in the area agree that they must decline their role in operating specific utilities,” Al-Mugait stated.

He explained that this role should be given to the private sector where they have unlimited resources with adequate operational systems which would benefit the citizens.

Al-Mugait also mentioned that this week in the Eastern Province the seminar on Mega Projects will highlight the private sector’s bids in the fields of desalination, energy, roads and railroads.

Meanwhile, Al-Gosaibi listed the targets the Council of Ministers aimed to achieve through privatization:

1. Increasing the proficiency of national economy and its competitive ability to face challenges.

2. Pushing the private sector toward investing and contributing in the national economy and increasing its share in the gross national revenue.

3. Encouraging national and foreign capitals to invest in the Kingdom.

4. Expanding the citizen’s participation in investments.

5. Providing more job opportunities.

6. Presenting services for citizens and investors at a reasonable cost.

7. Decreasing the dependency on the nation’s budget and giving the task for the private sector to finance and operate some services.