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the business of introducing privatized companies into the market: how fair is fair?

Disclaimer: The following is a personal business opinion and could possibly be viewed as biased or irrelevant;

The GCC states are now trying to look at several options to diversify their economy and loosen up their debt to the international loaning institutions by opening up the country to tourism and privatizing their closed subsidiaries.

And as much as it is a good method to go about; it is also a method that cuts both ways.

For as the tourism industry is one of the most needy industries that requires the attention of all money rendering sectors of the country. As an entity it also feeds on other factors as well, it may well influence on the need to loosen up a country politically; environmentally; socially; and business-wise.

This brings me to the argument of introducing previously government owned businesses into the market in order to loosen the country's debt. This method would not only allow the inroduction of the idea of competiton into the private sector but will also allow a unfair advantage to these companies since they have had the backing of the government for such a long time and the only sense would be to pull out all fundings when another source of finance is found to run thr company. Not to mention the tremendous amount of friction that is caused in management issues during the transition period.

The sense of introducing privatized companies means that there has to be a carefully based plan outlined for at least the transition period until the company is fully privatized unlike unhealthy competition that happens in the examples of OmanTel along Oman Mobile versus Nawras.


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