Riyadh, June 2020

On Tuesday June 6th the Council of Misters issued a resolution giving Milling Company 1 (“MC1”), Milling Company 2 (“MC2”), Milling Company 3 (“MC3”) and Milling Company 4 (“MC4”) permits to produce flour and transferring ownership of the 4 Flour Milling companies (the “MCs”) to the National Center of Privatization and PPP (“NCP”). This is in line with NCP’s role as the entity supporting and leading privatization in the Kingdom. On 31 March 2020 the Council of Misters issued a resolution allowing NCP to own assets & companies. 

This transfer of ownership shall not have an impact on the ongoing privatization of the MCs. The privatization of the four milling companies is still going according to plan and is expected to be finalized by 2021.

It is worth noting that the four flour milling companies represent an attractive opportunity for the private sector to invest in one of the largest flour markets in the Middle East and North Africa with high and appealing growth rates, to further boost private sector productivity and improve product quality.

The flour milling sector represents one of the targeted sectors for privatization under the Kingdom of Saudi Arabia’s Vision 2030 realization plan as a part of the initiatives under the third pillar of the privatization program document and enjoys the support of the concerned regulatory and executive authorities led by the Ministry of Environment, Water and Agriculture and the National Center for Privatization and PPP.

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