Basic Principles of Privatization
The Privatization processes shall observe the following strategy and basic principles :

Creation of suitable conditions for developing a competitive environment in a market economy to benefit from the advantages of competition in order to increase the efficiency of management of assets and production and reduce market prices.

 

Developing a comprehensive legislative and organizational framework supporting the privatization process including the required reforms of the sectors through the amendment of existing laws and promulgation of new laws.

 

Establishing independent authorities for regulation and control of the privatized sectors through the issuance of licenses, and control of quality and monopolistic behaviors to safeguard the interests of the government, consumers and investors.

 

In some instances, Privatization should be made gradually in stages starting with the restructuring of the government entity and transforming it into closed joint stock company mainly owned by the government but governed by the Companies Law as a first step in the transfer their ownership to the private sector.

 

Efforts during this preparatory stage will emphasize on the development of work culture and the use of commercial and financial methods exercised by the private sector in order to ease the privatization process in the following stages:

 

Valuation of assets of the entity being privatized are to be carried out according to the accounting and economic practices prevailing in the Sultanate. The objective of this is to determine the value of the entity in directing the privatization process.

 

Choosing the most appropriate mode of privatization of each project relative to the operating conditions and requirements of the concerned sector. This will help in achieving the objectives laid down within the basic structure of the national strategy.

 

Demonstration of transparency and openness in taking decisions and implementing the procedures relating to privatization processes.

 

Preservation of the rights of all parties , especially the interests of the workforce transferred by the privatization process to the privatized enterprises including the settlement of their employment status.

 

Citizens should be informed on the objectives of the privatization program and the procedures taken in its implementation making the privatization program more transparent.

 

The proceeds from the sale of government assets are to be utilized in strengthening the financial position of the government and be applied in the manner that serves the mechanisms of privatization.

 

Assistance of specialized consultants should be sought for undertaking detailed studies and having access to targeted investors in the privatization process.