STC and Saudi Aramco are among the identified companies
Saudi Arabia has hired consultants to advise on plans to create top global companies. Industries such as petrochemicals and telecommunications feature as part of its moves to diversify its economy.
Around five companies have been identified so far, including Saudi Arabian Oil Co., Saudi Basic Industries Corp. and Saudi Telecom Co. that fit the desired profile. Advisers have been asked to draw up policies that will boost their international competitiveness and profiles.
The Kingdom is also studying industries in which it can be a leading player and looking at incentives such as access to funding. Saudi Arabia is keen to follow the actions of South Korea where companies like Samsung Electronics Co Ltd. have become household names.
As part of its plans to make local companies more competitive, Saudi Arabia is looking at plans to reshuffle assets. Companies including Sabic, Aramco and Saudi Arabian Mining Co. are included and the plans reduce overlap between firms and help them focus on their core business. The country announced earlier this year that it plans to sell a stake in Saudi Aramco in an initial public offering.
Saudi Arabia is looking to increase the role of the private sector in the economy to 65 percent of output by 2030, up from its current 40 percent. The government plans to support local companies “with promising growth opportunities so they develop into new regional and global leaders,” it said as part of the Vision 2030 announcements.