Improving asset management in the public sector in the Kingdom of Saudi Arabia

Since the early explosive growth of Saudi Arabia in 1973, a rapid, comprehensive and ambitious urbanisation movement has taken place, changing the country’s face from the medieval to its modern shape. In many cases, this growth has been translated into physical assets, which leads to immense pressure on physical assets condition. To date, no study has given clear a view of asset management practices across the Saudi public sector. In addition, no improvement plan has been developed regarding asset management practices across the whole of the public sector of Saudi Arabia.
Therefore, the aim of the study is to assess current asset management practices across the Saudi public sector and, then, provides recommended actions based on the assessment outcomes. This aim is achieved by three main objectives: first, to explore leading asset management standards and guidelines and their recent development trends; second, to explore current characteristics of asset management practices in Saudi public sector with the purpose of developing an understanding of the gap between developed countries and Saudi public sector; and third, to explore factors influencing systematic asset management practices and provide recommendations.
Inductive and deductive methodological approaches are adopted and employed. Findings from the research reveal that asset management practices in the Saudi public sector present five major issues: the need for an independent entity for asset management practices, the fact that physical assets are not managed strategically, weak asset management practices, weak organisational policy and professional standards, and reliance on experience. To tackle these issues, a systematisation of asset management practices in SPS is recommended. Systematisation thinking was originally derived from the international standards and guidelines that belong to several developed countries. The outcome of the study is believed to be context free because the basic principles of systematisation thinking rely on existing theories in process, strategic planning/reasoning, portfolio and programme management.