Minister of Agriculture and Acting Minister of Telecommunications and Information Technology Dr Fahd Bin Abdulrahman bin Sulaiman Balghunaim said that the Cabinet’s approval to authorize an Etisalat consortium to issue licenses for mobile telephone services accords with the Kingdom’s policy for privatisation of telecommunications and information technology sectors.
In a statement to the Saudi Press Agency (SPA), Dr Balghunaim said that the consortium is a Saudi company, which will be established in accordance with the Cabinet’s approval.
Saudi citizens will own 55% of the company’s shares. The following companies and establishments will own 45% of shares: The General Organization for Social Insurance (15%); Al-Jumeih Holding Company (6%); Abdul Aziz Al-Sugheir Company for Commercial Investment (6%); Rana Investment Company (6%); Abdullah bin Saeed bin Zakar Company (6%); Riyadh Cables Group (6%). Twenty per cent of shares will be floated for subscription by citizens. The United Arab Emirates Telecommunications Corporation will own 35% of the shares.
Dr Balghunaim noted that the new company will provide mobile telephone services with technology of the second generation of GSM and that of the third generation. In addition to advancing telecommunications services at competitive prices, the company will create indirect and direct job opportunities for thousands of Saudis.
Source: SPA
