The Impact of Privatisation of state-owned enterprises in the United Kingdom and Saudi Arabia

Abstract

This paper reviews the motivation for the privatisation of public sector companies in both the UK and Saudi Arabia and their approach to the privatisation programme. This essay searched for the incentives and changes that contributed to changing the privatised company and its concept. In addition, there is consideration of the strategies for privatising companies and the work to achieve their goals in terms of improving efficiency to achieve growth and boost competition in the long- term, reduce government monopolies and save them from crises by altering their structure or addressing their lack of managerial experience. The British government privatised most public sector companies to address the lack of efficiency, reduce government spending and develop their structure. Meanwhile, the Saudi government’s approach to privatisation was motivated by the realisation of Vision 2030, one of the pillars of which was the privatisation programme and the achievement of national transformation in terms of achieving positive results from the efficient performance and structural development of companies subject to privatisation and legislative development by issuing a law to privatise companies. Therefore, privatisation succeeded in achieving most of its objectives. The paper concludes with the lessons learned by the two governments from the privatisation experience in terms of the importance of developing competition, the quality of company management, and the role of legislation in the effective regulation of companies.