Saudi government decides to privatize two companies
The privatization of the National Company for Cooperative Insurance (NCCI) and Saudi Arabian Mining Company (Maaden) is predicted to bring at least SR550 million to national coffers.
The Supreme Economic Council (SEC), chaired by Crown Prince Abdullah, decided to sell state shares in NCCI and approved steps to privatize Maaden in its recent meeting held earlier this week. The SEC did not, however, give a specific date for the privatization of the two state-owned firms, Arab News reported.
SEC Secretary-General Dr. Abdul Rahman Al-Tuwaijeri said the council’s meeting decided to sell state shares worth SR250 million owned by Public Investment Fund in NCCI which has a capital of SR500 million.
The General Organization for Social Insurance and Pension Fund are expected to maintain their stake (25 percent each) in the Kingdom’s only official insurance company which has five million shares, each with a nominal value of SR100.
Maaden, which is fully owned by the government, is expected to sell 40 to 50 percent of its stake in the precious metals sector in which the company has invested SR600 million, Al-Watan Arabic daily said. (menareport.com)
© 2004 Mena Report (www.menareport.com)