25 Saudi schools to be privatised
Initiative is part of education ministry’s reform plans under Vision 2030
Saudi Arabian authorities on Tuesday ordered the handover of 25 state-run schools to be run by private sector companies as part of economic reforms designed to ease pressure on the state’s finances.
Riyadh announced last week that it aimed to generate 35 billion to 40 billion riyals (Dh34.26 billion to Dh39.15 billion) of non-oil state revenues from privatisations by 2020, and an official overseeing that process told Reuters that school buildings would feature in some of the first deals.
The cabinet of ministers entrusted a supervisory committee for the education sector with the job of implementing the ‘Future Schools’ initiative, the official Saudi Press Agency reported, without providing details.
The initiative is part of the education ministry’s reform plans under Vision 2030, a wide-ranging programme championed by Crown Prince Mohammad Bin Salman to overhaul the economy of the world’s top oil exporter.
The ministry announced in January a tender for a longterm concession to design, build, finance and maintain facilities for 60 schools in Jeddah and Makkah, from kindergartens to secondary schools.
In the past, the government built such infrastructure solely out of its own funds, but a drop in global oil prices in 2014 severely strained state finances, prompting authorities to seek the participation of private investors.
Housing, health, education, transport and energy are among the sectors targeted by the privatisation drive launched in Saudi Arabia, the chairman of the National Centre for Privatisation has said.
Housing, health, education, transport and energy are among the sectors targeted by the privatisation drive launched in Saudi Arabia.
Ambitious plans
Other sectors include municipalities, labour and social development, industry and mineral resources, environment, water and agriculture, telecommunications and information technology, and Haj and Umrah, Mohammad Al Tuweijri said in a statement carried last week.
“The programme aims to promote competitiveness, raise the standards of services and economic development, improve the business environment, remove obstacles that could limit the private sector’s role in the development of the kingdom and focus on developing and activating the legislative system related to privatisation,” Al Tuweijri said in the statement carried by the Saudi daily Okaz on its site.