Economic Impact Of Privatization (Saudi Arabia)

The aim of this study is to investigate privatization and its social and economic consequences. This is accomplished through a review and analysis of the theoretical and practical aspects of privatization, which in the context of this study; incorporate the divestiture of public sector assets to the private sector as well as private sector management of public sector owned assets. Another objective is to evaluate the positive and negative impact of privatization, pertaining to social and economic issue.The dissertation first explores the roles played by the public and private sectors in the economy. It discusses the basic constituents of the private and public sectors, defines their evaluation criteria, and their roles in the overall economy, then focuses on the overall aspects of privatization.Also it will explore the effects of privatization on various social and economic variables such as income distribution and capital markets. Indeed privatization cannot succeed without the continuous guidance, support and monitoring of the government. However, one can surmise that the causes of success of privatization programs lie not in the theoretical models but rather in effective well executed plan.