THE MOVEMENT TO PRIVATIZE PUBLIC ENTITIES IN SAUDI ARABIA: THE PERCEPTION OF FINANCIAL OFFICERS, FINANCIAL ANALYSIS, AND LAWYERS

Abstract

Over the years, several developed countries (e.g., the United States, Japan, Canada, and Western Europe) have launched countless privatization programs due to the benefits of involving the private sector in providing public services. These benefits include cost reduction, quality of service, sources of revenue, expertise, timeline, flexibility, and risk transfer, to name just a few. The development of privatization in Saudi Arabia has moved through four stages, including zero privatization (before 1923), privatization with no or little regulation (1923 to 1984), privatization with regulations (1984 to 2018), and the establishment of the National Center for Privatization (2018 to Current). The purpose of this study was to investigate the nature of transferring public ownership to private ownership in Saudi Arabia based on ten participants’ perceptions. A semi-structured interview was conducted with ten employees who worked in a governmental entity that handles privatization-related work, including financial officers, financial analysts, and lawyers. I discussed three major findings related to the process and procedures of privatization in Saudi Arabia, including (a) lack of prior knowledge that employees had about privatization and how it is important for them to improve their knowledge, (b) insufficient professional development for employees and how this insufficient preparation impacted their skills and knowledge, and (c) the employees’ positive hope of long-term outcomes of privatization and how this positive hope can impact society. At the end, I share the implication of this study, mention the limitations, and provide a set of recommendations.