Riyadh – Mubasher: Saudi Arabia is exploring selling off assets in sectors that were not previously considered for privatisation, as the country is grappling with the economic impact of sustained low oil prices, Reuters reported citing the kingdom’s Minister of Finance, Mohammed Al Jadaan.

The world’s biggest oil exporter could raise more than SAR 50 billion in the next four to five years by privatising assets that have not been targeted before for privatisation, such as some healthcare and education facilities, the finance minister revealed.

The kingdom is facing a sharp recession as a result of the coronavirus crisis and depleted oil revenues, however, the minister said, “A lot of factors work in our favour ... local and domestic tourism, for example, is picking up very nicely this month.”

Whilst the International Monetary Fund (IMF) has forecast a 6.8% contraction this year, the minister expected a below estimates shrink.

Over recent years, Saudi Arabia has planned a series of privatisations, including the initial public offering (IPO) of state-owned oil giant Saudi Aramco, which took place in 2019.

Though there are no imminent plans to introduce an income tax, Jadaan said that nothing could be ruled out. Meanwhile, the Saudi Press Agency (SPA) quoted an unnamed Saudi official as saying that the issue has not been discussed by the cabinet or any government committee and is not a matter of discussion.

Earlier this month, Saudi Arabia tripled its value-added tax (VAT) to 15% in an effort to boost public revenues.