Cabinet Okays converting sports clubs into private companies

RIYADH – The Council of Ministers on Monday approved privatization of sports clubs and transforming them into companies. Custodian of the Two Holy Mosques King Salman chaired the weekly session of the Cabinet at Al-Yamamah Palace in Riyadh. In a statement to the Saudi Press Agency following the session, Minister of Culture and Information Adel Al-Turaifi said that the Council took the decision after reviewing a recommendation made recently by the Council of Economic and Development Affairs. According to the decision, privatization is applicable only to those sports clubs that are taking part in professional league football championships. These clubs will be transformed into companies with the sale of their stakes. The General Authority of Sports will grant license to these companies in line with the concerned terms and conditions. The authority, in coordination with the ministry of commerce and investment, and the ministry of economy and planning, will frame the necessary rules and regulations for the operation of these companies. The Cabinet directed formation of a supervising committee to follow up and execution of various phases of the privatization process. The committee will be headed by chairman of the General Authority of Sports while deputy minister of economy and planning, undersecretary for rules and regulations at the ministry of commerce and investment, as well as representatives of the ministry of finance, Saudi Arabian Football Federation and Saudi Professional League will be members of the committee. Al-Turaifi said the Cabinet approved an agreement signed with the government of Chad to hire domestic workers from that country. The Council also decided to establish diplomatic relations with the Central African Republic at the non-resident ambassador level. At the outset of the session, King Salman commended the Kingdom’s excellent financial position, thanks to the security and stability it is enjoying, with the blessing of Almighty Allah. After having been briefed on the 52nd annual report of Saudi Arabian Monetary Agency (SAMA) for the fiscal year of 2015, the King expressed appreciation of SAMA for the efforts it was exerting in serving the country’s national economy. The Cabinet expressed its hope about the bright future that the Kingdom would embrace through its new development march as per the objectives prescribed by the Kingdom’s Vision 2030 and the National Transformation Program, which will leave a tangible economic impact through diversification of the resources of the national economy. The Council slammed the barbaric airstrikes targeting the Syrian people, especially at hospitals and schools in the Aleppo region, saying that these vicious practices are being committed in flagrant violation of international humanitarian laws and principles.