The concept of privatization refers to the process of transferring services or property from the public or government sector to the private sector, so that in this process all assets owned or owned by the state are sold to public sector bodies through the abolition of laws and all restrictions imposed by competition between private companies, this procedure usually What has a noticeable impact on government revenues, which may be beneficial to them, ie positive, and the concept of privatization itself can differ. Much of it relates to the concept of nationalization, as nationalization is one of the policies adopted by the government to retain revenue, and this policy is widely used by the government under the control and control of foreign interests in its economy in an attempt to achieve a way to protect revenue from vital industries.
Reasons for privatization
There are many cases and reasons behind privatization, and it may be due to the government’s desire to accomplish its mission in some places and may resort to this tool when it has a negative impact on stock prices; Where many companies need to go. The private sector may occur when there is an attractive offer to buy the shares of these institutions, or in the case of a merger of the institutions, in case of complete restructuring of some of their business operations to increase their influence on the shares.
types of privatization
The concept of privatization is of many types. Examples include complete privatization, privatization of operations, privatization through concessions, free or open competition, privatization of contracts, as well as privatization of public services provided by the state; Including airport operations, vehicle maintenance, information and data processing, water services, etc.