RIYADH, 12 November 2002 — The government yesterday announced plans to privatize 20 vital economic sectors including telecommunications, civil aviation, desalination, highway management, railways, sports clubs, municipality services, health services and hotels.
The decision was taken by the weekly Cabinet meeting chaired by Custodian of the Two Holy Mosques King Fahd. The meeting also decided to sell government shares in joint stock companies including Saudi Basic Industries Corporation and Saudi Telecom.
The sectors to be privatized also include water and sewage department, construction of highways, airport services, postal services, grain silos and flour mills, seaport services and industrial city services.
Construction and maintenance of educational buildings, printing of educational books, school transportation and student housing, renting and operation of school and university facilities will also be privatized.
The Kingdom urged Baghdad to implement the UN Security Council Resolution 1441 to avert a possible devastating war that would be detrimental to the Iraqi people and destabilize the whole region.
"We hope that the resolution and its implementation will put an end to the tense situation in the region and drive away the specter of war," Information Minister Dr. Fouad Al-Farsy said quoting the Cabinet.
The meeting hoped that the Security Council will take similar steps to implement the resolutions related to the establishment of a Palestinian state and restoration of Arab land occupied by Israel. The Cabinet reviewed preparations made by various ministries and government departments for the new national budget, which the king said would give priority to public service projects.
Privatization will also cover state shares in Saudi Electricity Company, Saudi Arabian Minerals Company (Maadin) and local petroleum refineries as well as capital investments in Arab and Islamic joint companies.
Of municipal services, Al-Farsy said, construction and management of abattoirs, gardens and recreation centers, cleaning and garbage disposal services will be privatized.
The privatization list includes operation and management of social service centers, Saudi employment services, agricultural services, establishment of health facilities and transportation of patients.
Al-Farsy said the Cabinet approved the privatization list on recommendation of the Supreme Economic Council, which is chaired by Crown Prince Abdullah, deputy premier and commander of the National Guard.
At a previous meeting, the Cabinet had stated that the Supreme Economic Council will take overall charge of planning and implementing the country’s privatization program. It said the SEC will specify the "activities to be privatized" and set out a strategic plan and timetable for the privatization program.
"The SEC will supervise privatization of any activity ... and take the necessary measures to complete the privatization process as per the rules and regulations," Al-Farsy said after the Cabinet meeting.
The Cabinet meeting also decided to implement a unified law for legal practice in the Gulf Cooperation Council which was approved by the last GCC summit in Muscat. Al-Farsy said the Cabinet agreed to bear the customs tariff of Palestinian products imported into the Kingdom for another year.
