Privatization in Saudi Arabia - Case Study Example

The paper “Privatization in Saudi Arabia” is an intriguing example of the business case study. Privatization refers to property or business ownership transfer from government to private sector whereby the government ceases entity ownership. Privatization aims in improving efficiency and effectiveness to the objective of the public company. Saudi Arabia has embarked on the privatization of public institutions and enterprises in focusing on the efficiency improvement in the national economy. The process of privatization aims to enlarge the ownership of public institutions to the citizens and private investors. Privatization encourages local and foreign investors in engaging in capital investment and ensuring asset productivity to achieve their objectives.

In the year 2003, the Saudi Arabia council of ministries proposed and provided the list of public government entities that were targeted in privatization for economic activities and government services. The authority invited the private sector in participating in many economic activities. The objective and other implementation processes that were provided by the Saudi Arabia government were possible as it ensured a suitable environment that attracted private sector investors (Economicshelp.org, 2011). The major consideration is ensuring all the public institutions are privatized to allow higher production and achievement of government objective of service delivery.

The coverage of the privatization practices engages the private sector in different aspects such as functions and responsibility of operations undertaken by the government. The government has the ultimate decision on whether the services would be undertaken by the public agencies or private vendors are supposed to use the market price in acquiring services (Tradingeconomics.com, 2016). The major consideration is whether the government involves the private sector in undertaking services under the essence of the privatization process or the private sector to purchase the entire assets and provides the services that the government was supposed to offer to the public (NCPSSM, 2016). It is a complex and diverse approach to the government operation and considering the privatization process. The Saudi Arabia government considered enhancing the public sector through investment in the private sector to enhance government productivity.