Riyadh – Mubasher: Saudi Arabia intends to raise about $55 billion over the coming four years while accelerating its privatisation programme with the government to boost revenue and narrow budget deficit that hit $79 billion last year, the Financial Times reported.

The Kingdom’s Minister of Finance, Mohammed Al Jadaan, said Riyadh had identified a pipeline of 160 projects across 16 sectors such as asset sales and public-private partnerships until 2025. Asset sales will likely include television broadcasting towers, government-owned hotels, and district cooling and desalination facilities.

Al Jadaan added that Saudi Arabia intends to outsource the management and financing of health infrastructure and services to the private sector, in addition to city transportation networks, school buildings, airport services, as well as water desalination and sewage treatment plants.

He commented: “It’s not a choice any more, but a requirement by the central government that these services or these utilities will no longer be run by the government,” adding, “It’s taking it [privatisation] to the next stage.”

Saudi Arabia’s budget deficit in 2020 accounted for 12% of the gross domestic product (GDP). The minister said the country plans to reduce its fiscal deficit to 4.9% of GDP in 2021.

Al Jadaan hopes to secure $38 billion through asset sales and $16.5 billion through public-private partnerships.