The Impact of Privatization on Cash Flows in the Saudi Government Sector: A Case Study of the Ministry of Environment and Water

Abstract

This study aimed to demonstrate the impact of the privatization policy on the cash flows in the Saudi government sector, where the descriptive analytical approach was used in order to achieve the objective of the study. The study tested two hypotheses, the first indicating that privatization has a positive impact on the cash flows in the Saudi government sector, while the second hypothesis indicates that privatization has a negative impact on the cash flows in the Saudi government sector. The study community consisted of all Saudi government institutions that have been privatized in the past period, and the privatization processes that took place in the Ministry of Environment and Water were taken as a sample for this community. The study concluded that the application of the privatization policy has a positive impact on government flows, as this policy contributed to reducing government spending and increasing government revenue, and the study recommended that the Saudi government should focus on privatization methods that are not assigned to sales operations but the government retains ownership and management of projects in the private sector style. The study stressed that there is a need to highlight the positive aspects of this policy to society in order to gain societal support for this policy.