Saudi Arabia suspends $2B sale of desalination plant

The disruption, blamed on the coronavirus pandemic, is seen as a setback to the kingdom’s privatisation plans.

Saudi Arabia has halted the sale of one of the world’s biggest water plants, which had attracted interest from investors including France’s Engie SA, in a setback for the kingdom’s privatization plans. The Ras Al Khair desalination and power facility on Saudi Arabia’s east coast had cost more than $7bn to build. The government, which had been hoping to accelerate asset sales this year, blamed disruptions caused by the coronavirus pandemic. Saudi Arabia was looking to raise about $2bn by selling a 60% stake, two people familiar with the matter told Bloomberg, asking not to be identified as the information is private.