04Mar2003 Petroleum Minister speaks on new Saudi stock company

Riyadh, 4th March 2003

The Minister of Petroleum and Mineral Resources, Ali bin Ibrahim Al-Naimi, announced that the Manufacturing and Energy Services Company, which the Cabinet approved as a Saudi stock company, will work in the field of industries and services to support the oil industry, petrochemicals, water desalination, electricity generation and other sectors.

In a press statement, he said that some materials, services and equipment used in these industries are imported from abroad, noting that the company will manufacture equipment and materials and provide local services that enhance the domestic economy and strengthen expertise to build and operate establishments and industry in the Kingdom.

Al-Naimi noted that the General Investment Fund would have a share of 40% of the company’s capital, representing the government’s contribution in kind. National companies and establishments will share the remaining 60%. Part of the capital will be offered for general subscription, in accordance with directives of the Cabinet.

The Minister of Petroleum said that the new company reflects the government’s policy of privatising some public companies, and that it will result in the provision of employment opportunities and training for citizens through affiliated companies.

Source: SPA

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