Saudi Arabia to Collect $55 Billion from Privatization Over 4 Years

Saudi Finance Minister Mohammed al-Jadaan
Saudi Finance Minister Mohammed al-Jadaan
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Saudi Arabia to Collect $55 Billion from Privatization Over 4 Years

Saudi Finance Minister Mohammed al-Jadaan
Saudi Finance Minister Mohammed al-Jadaan

Saudi Finance Minister Mohammad Al-Jadaan revealed that the Kingdom was seeking to collect USD55 billion from the privatization project over the next four years, adding that it was planning to boost the program in order to increase revenues and reduce the budget deficit.

The minister’s statements come in the wake of a recent decision by the Saudi Council of Ministers to approve the privatization system, which aims to rationalize public spending, increase state revenues, and raise the efficiency and competitiveness of the national economy in order to face regional and international challenges.

In remarks to the Financial Times, Jadaan noted that Riyadh has identified a portfolio of 160 projects in 16 sectors, including asset sales and public-private partnerships through to 2025.

He explained that the aim of this step was to increase revenues and reduce the budget deficit, which amounted to USD79 billion last year, which is equivalent to 12 percent of GDP, in addition to improving state services.

The minister said he hoped to secure USD38 billion through asset sales and USD16.5 billion through public-private partnerships.

He added that the Kingdom was seeking to reduce its fiscal deficit to 4.9 percent of GDP in 2021 in order to recover from last year’s twin shocks of the coronavirus pandemic and the slump in oil prices.

As for Aramco’s sales, Jadaan told the Financial Times: “There are two types of sales for Aramco. They can monetize their own assets like pipelines and recycle that money into new investments — that is their business,” he said.

“When it comes to Aramco’s shares, we will monetize them, recycle them and create more activity in the economy by unlocking new sectors through the PIF,” he added.



Saudi Arabia Tightens Regulations on Precious Metals and Gemstone Traders to Combat Money Laundering

Maaden gold mine in Al-Ammar, Saudi Arabia (Asharq Al-Awsat)
Maaden gold mine in Al-Ammar, Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Tightens Regulations on Precious Metals and Gemstone Traders to Combat Money Laundering

Maaden gold mine in Al-Ammar, Saudi Arabia (Asharq Al-Awsat)
Maaden gold mine in Al-Ammar, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has imposed stricter regulations on traders of precious metals and gemstones as part of its anti-money laundering efforts. The government has instructed investors to comply with Article 7 of the Anti-Money Laundering Law, which mandates financial institutions and designated non-financial businesses to implement due diligence measures.

These measures coincide with Saudi Arabia’s push to expand its mining sector, a key component of Vision 2030. The Kingdom has increased its mineral wealth estimate to SAR9.4 trillion ($2.5 trillion) and introduced exploration incentives worth SAR682.5 million ($182 million) by the end of 2023.

The new Mining Investment Law aims to attract investment and boost mineral production. Since its enactment, the number of mining licenses has risen by 138%, according to the Ministry of Industry and Mineral Resources.

The Saudi Ministry of Commerce has directed private sector entities to apply customer due diligence measures, especially for high-risk transactions. Businesses must verify customer identity using official documents and obtain and confirm details such as full name, address, date and place of birth, and nationality for individual customers. Transactions must not be conducted without proper identity verification, and businesses are encouraged to contact the General Administration for Anti-Money Laundering for guidance.

Saudi Arabia aims to increase the mining sector’s GDP contribution to SAR176 billion ($47 billion) by 2030 while enhancing domestic mineral supply, improving the trade balance, and attracting investment. Other priorities include expanding non-oil revenue, creating jobs, developing local talent, and strengthening regulatory frameworks. These efforts align with the Kingdom’s broader goal of establishing a competitive and sustainable mining industry while ensuring compliance with international financial regulations.