JEDDAH: Privatizing large parts of the Saudi economy including health, education, municipal affairs, aviation and sports will ease the pressure on government finances and improve services, in line with the aims of Vision 2030, according to some economists and experts.

Emad Al-Muhaideb, board member of the Jeddah Chamber of Commerce and Industry, said that it would ease the pressure on the state budget in the wake of the decline in oil prices, boost service provision and eliminate time-consuming bureaucracy.

He said the government had in 2003 identified 23 sectors that would be privatized, which would improve services and performance and save the country a great deal of money, he was quoted as saying by a local publication on Tuesday.

Ghazi Abdullah Abbar, an economist, said most citizens want efficient services without having to spend a great deal of time and money. He said that the municipal and health sectors can be privatized, with government continuing to retain a monitoring and supervisory role.

The aviation sector’s privatization is expected to be completed in five years, he said.

Economist Suhail Haji said: “There is no doubt that Saudi Arabia has taken concrete steps toward greater economic diversification, including the privatization of some state-owned assets. The scope of privatization will expand when the airports, hospitals and educational facilities are included in the process.”

He said privatization has been welcomed by Saudi society because it will increase revenues in the short term, relieve some of the pressure on Saudi Arabia’s foreign exchange reserves and reduce borrowing costs. This has already proven effective with the public-private partnerships in the aviation sector, he said.