The decision to privatize
The decision to privatize SWCC was approved by royal decree No. 2/29, dated 29/6/1429 H. corresponding to 03/07/2008 and issued by the Custodian of the Two holy Mosques, King Abdallah Ibn Abdulaziz, Head of the Supreme Economic Council.
The decision to change the status of SWCC to a holding company, entirely owned by the government and owning a number of production business units from the current and suggested industrial plants of SWCC.
Investors and developers of the private sector can a maximum of 50% of these production business units.
At a later stage SWCC will issue stocks of the holding company for public subscription as per the requirements of the Capital Market Authority. It will also float its share of business production units for public subscription based on a timeline agreed with the investors and developers.
Definition of Privatization
Privatization means changing ownership or management of companies, projects or public services from the government sector to the private sector using market instruments and competition by applying several methods ranging between management and operational contracts, leasing, financing, total or partial sale of assets to the private sector.
The company shall be a pioneer in the desalination industry, applying business principles and updating its activities to meet local and international challenges and changes.
We strive to provide water and electricity using the latest technology, at a reduced cost, with the help of a qualified national work force, so as to achieve economic growth and social development.
Strategic Goals of Privatization in the Kingdom
The Council of Ministers decision No. 60, dated 01/04/1418 H. defined 8 strategic goals for privatization in the Kingdom of Saudi Arabia, along with the foundation principles to be taken into consideration for the achievement of these
In addition, the Council of Ministers decision No. 257, dated 11/11/1421 H. stipulated that the Supreme Economic Council be responsible for the supervision of the privatization project and the monitoring of its implementation and coordination with government entities as well as defining the steps needed to undertake privatization.
The Supreme Economic Council shall also issue a detailed list of activities targeting privatization, based on the Council of Ministers decision, and a strategic work plan with a timeline to achieve that.
The goals are as follows:
1.Increase the effectiveness of the national economy and its competitiveness
2. Encouraging investment and effective participation of the private sector in the national economy.
3. Expanding participation of the public sector in productive assets.
4. Encouraging national and international capital markets to invest in the Kingdom.
5.Increasing job opportunities and employment for the national work force
6.Providing timely low cost services to the public and to the investors
7.Controlling public spending to minimized burden on the state budget
8.Increasing state revenues through participating income from the private sector