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English news

19-Oct-2017

Saudi Postal to set up new distribution centres, in anticipation of longer-term privatisation plans

Saudi Arabia’s government-owned postal service is looking to establish new distribution centres as part of a privatisation process, which could take several years, according to the head of the institution. Officials announced that Saudi Postal is transferring its central distribution centres to KSA's three international airports in Riyadh, Jeddah and Dammam to improve efficiency, which are expected to be operational within 24 to 36 months. According to Saudi Postal President, Mohammed al-Abdul Jabbal, processing centres are among the primary projects of the transformation process in anticipation of privatisation. Other steps might take until 2025 to be completed,  he added, implying that different parts of the institution could be sold off at different times. With privatisation of the business, the government's annual financial support for Saudi Postal is expected to fall to zero by 2020 from SAR2bn currently, while boosting performance is expected to lift its revenue to SAR2.75bn in 2020 from SAR1.02bn in 2015. 

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