Municipal companies will sell their shares publicly to operate on a commercial basis, local sources said.
The Ministry of Rural and Municipal Affairs is preparing an executive plan for municipal businesses to establish these companies. The proposal will regulate relations between the private and public sector in municipal services like cleaning and development and aims to evade troubled relations between private and public sectors and municipal companies.
Minister of Municipal and Rural Affairs Prince Mansour bin Miteb decided to establish an internal unit under the name “municipal companies.” This will look into the business, goals and nature of companies owned by municipalities and establish suitable mechanisms for private sector partnerships.
Waheeb Kamfar, a director of an investment development office, said municipal companies would find a suitable environments for private sector participation in implementing the ministry’s plans to develop cities. He said the ministry is facing many challenges in implementing and financing projects that are concerned with the environment, planning and development in city centers.
Municipal companies to go public
