(MENAFN- Saudi Press Agency) Riyadh, September 17, 2020, SPA -- The National Center for Privatization & PPP (NCP) and the Saudi Grains Organization (SAGO) announced today, Thursday, September 17, the completion of the privatizations of the First and Third flour milling companies. This involved a competitive tender process for the shares of two of the four milling companies to strategic investors. The formal signing of the final contract took place at the Ministry of Environment, Water and Agriculture (MEWA) headquarters in Riyadh, in the presence of the Minister of Environment, Water and Agriculture, the Chairman of the Board of Directors of Saudi Grains Organization (SAGO), the Chairman of the Privatization Supervisory Committee for the Environment, Water and Agriculture Sector, and a member of the Board of Directors of NCP.
The Minister of Environment, Water and Agriculture Eng. Abdulrahman A. Al-Fadley, affirmed that this privatization is a historic event which starts a new era in food security in the Kingdom. He noted that the sale of the flour milling companies will help to enhance competition and improve operational efficiency in the sector. It will also help to increase the diversity of high quality flour products in the local market and improve service standards to customers. Moreover, it will support the government's efforts to achieve food security and develop the local market. The privatization helps to realize the objectives of the Kingdom's Vision 2030, which seeks to raise the contribution of the private sector to the GDP, maximize the benefits derived from government assets, and attract local and international investments.
The Chairman of SAGO, Eng. Ahmad A. Al-Fares, pointed out that SAGO will become the regulator of the milling sector and main supplier of wheat, barley and other grains to the privatized milling companies. SAGO is adopting a flexible regulatory framework that seeks to align the requirements of the Kingdom's food security, product quality, consumer experience while achieving fair investment returns for the private sector. SAGO also seeks to develop, qualify and train employees in the sector, create incentive benefits and stimulate new job opportunities in flour milling companies for the national workforce.
The CEO of the National Center for Privatization & PPP, Eng. Rayyan M. Nagadi, stated that the completion of the sale process marks a turning point for the flour milling sector in the Kingdom, as it is the first asset sale in one of the largest flour and animal feed markets in the MENA region. The privatization is in line with the Kingdom's vision for economic development, and is fully supported by MEWA, MoF, NCP and related entities. Eng. Nagadi added that according to the contract, the shares of the First Milling Company will transfer to the Raha AlSafi Consortium and the shares of the Third Milling Company will transfer to AlRajhi–Ghurair–Masafi Consortium.
--SPA
15:44 LOCAL TIME 12:44 GMT
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