JEDDAH, 20 April 2004 — Saudi Arabia has made strides toward the privatization of 20 major sectors including air transport, water, desalination, electricity and railways, says Finance Minister Dr. Ibrahim Al-Assaf.
“The Supreme Economic Council has shown keen interest in the issue of privatization,” the minister told the 120-member Shoura Council during a meeting in Riyadh on Sunday.
The sectors to be privatized also included airport services, government hotels, sports clubs, the postal service and sewage systems.
Al-Assaf denied reports the Kingdom had foreign debts. “Our debts are entirely domestic and we have set out an effective plan to cut down these debts,” he said.
“The government makes use of its surplus budget to pay off its debts,” the minister told the consultative body. “The state has worked out a strategic plan to float shares in some corporations in the stock market,” he said. They would be floated gradually to avoid any negative effect on the market, he added.
In terms of foreign remittances from expatriate workers, he said Saudi Arabia was second in the world only to the United States.
But the minister emphasized that the government would not put any obstacles in the way of such money transfers, although it was thinking of other strategies to keep these enormous funds active in the country.
“Recently we have opened the door for foreigners to invest in stocks within the limits of certain regulations,” he said. Foreigners are also allowed to invest in real estate.
Answering a question of a Shoura member, Al-Assaf highlighted the Kingdom’s efforts to stabilize world oil prices in cooperation with other producers.
He said the Kingdom had made use of the Oil Revenue Fund in some years that witnessed a decline in oil prices.
The minister also announced plans by the Saudi Arabian Monetary Agency to modernize regulations on monitoring banking activities.
He expressed hope the private sector growth rate of four percent last year would increase further in the coming years. Private companies would be given more opportunities to invest in government projects, he added.
The financial market would become operational very soon, the minister indicated. “A lot of activities have taken place in this area and we will announce members of the financial market authority shortly,” he added.
