DUBAI: The Saudi Arabian privatization program, a crucial part of the Vision 2030 strategy, is gathering pace with the launch of a tender to the private sector to build 60 new schools for children in the Jeddah and Makkah areas.
In a further sign of progress toward the sell-off of government controlled parts of the economy, it was also announced that the flour milling companies owned by the Saudi Grain Organization (SAGO) could be ready for sale in the first half of this year.
The schools announcement was made by Tatweer Buildings Company (TBC), a government owned company involved in all aspects of educational infrastructure. No value is put upon the contract in the tender documents.
HSBC, the global bank involved in many aspects of the Saudi privatization plan, is financial adviser to TBC. A bank spokesman said the tender was open to Saudi and international bidders.
Education was one of the areas earmarked for involvement by the private sector in a sell-off of state-owned assets that could be valued at as much as $200 billion over the next decade, according to official statements from the Ministry of Economy and Planning last year.
Privatization is regarded as a key component of the Vision 2030 strategy to reduce the Kingdom’s dependence on oil revenue and the public sector.
Tatweer is seeking “a developer or developers forming a consortium to design, build, finance, maintain and transfer public school buildings on various sites in Jeddah and Makkah leased to TBC by the Ministry of Education. The sites will also include, where appropriate, a multipurpose hall and can accommodate children with disabilities, catering facilities and specialist teaching areas in line with the Kingdom’s pedagogic objectives and strategy.
“The ministry will be responsible for providing the education services and information, communication and technology equipment and services. It is also anticipated that the developer or developers forming a consortium would look to develop a third party revenue generation model for any facilities such as the sports facilities when not in use by the ministry,” it added.
Wave 1 of the project will include kindergarten, elementary, intermediate and secondary schools, for boys and girls, TBC said.
An open investor conference will be held in Riyadh next month to gauge interest in the tender from developers, investors, financial institutions and professionals. TBC is also being advised by the UK-based law firm Allen & Overy as international legal counsel.
HSBC also announced that it had made progress on preparing SAGO for sale, in terms of the company’s business model, regulatory set-up and financial accounts for the 2017 financial year.
Details of the sales process will be announced during the second quarter of this year, HSBC said. The bank added: “The milling companies represent a unique investment opportunity in the flour milling sector in Saudi Arabia, the largest economy in the Middle East. The milling companies also present opportunities for expansion into value added product within the Saudi market.”
Saudi Arabian privatization plans accelerate with international tender to build 60 schools
Saudi Arabian privatization plans accelerate with international tender to build 60 schools
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
