Privatization In Saudi Arabia
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Date
2017
Department
Economics
Program
Master of Arts
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This item is made available by Morgan State University for personal, educational, and research purposes in accordance with Title 17 of the U.S. Copyright Law. Other uses may require permission from the copyright owner.
Abstract
This study has chosen privatization as a discussion topic, in order to expound more on its understanding and how as a strategic approach it can be utilized for the benefit of resources management. Moreover, selection of this topic is dictated by the need to clarify issues that have long been misinterpreted as pertains to the concept of privatization. It also seeks to advise the Saudi Arabia government on the effectiveness of privatization as a resources management approach. It commences with a definition and discussion on privatization as a strategy, reviewing its history and the reasons prompting its need in economies across the globe. The paper then discusses the impact and implications thereof on Saudi Arabia, as a developing market (economy) comparing and contrasting levels of private sector engagements among governments in the region and selected global economies. It briefly highlights impact of privatization in Gulf Cooperation Council member states, such as concerns in matters of unemployment risks and the rising prices of commodities and services because of the elimination of subsidies orchestrated by privatization programs. It discusses the lessons derived from this strategy and analyses several state corporations that have been privatized in Saudi Arabia. It also explores the challenges associated with privatization processes and the adoption thereof, such as critics of the liberalization, the rigidity of pay policies, removal of subsidies, regulatory framework, update of public entities' accounts, and financial resources. It then concludes with a forecast of privatization as regards to the Kingdom of Saudi Arabia, and offers critical recommendations with respect to improvements that can be realized.