Article 7 of the Saudi Communications and Information Technology Law
المادة 7 من نظام الاتصالات وتقنية المعلومات · الفصل الثاني: التراخيص
A service provider must obtain the Authority's approval before a material change in ownership or assignment of its license, and the Authority's non-objection to a material change in senior management, with 90 days for the Authority to decide.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بما تقضي به الأنظمة الأخرى، على مقدم الخدمة الحصول على الآتي:
أ- موافقة الهيئة قبل اتخاذ أي من الإجراءين الآتيين:
(1) تغيير جوهري في ملكية المرخص له أو المسجل.
(2) التنازل عن الترخيص أو التسجيل أو التصريح للغير.
ب- عدم ممانعة الهيئة عند إجراء تغيير جوهري في الإدارة العليا للمرخص له أو المسجل.
2- تحدد اللائحة الضوابط والإجراءات اللازمة للحصول على الموافقة وعلى عدم الممانعة المشار إليهما في الفقرة (1) من هذه المادة. وفي جميع الأحوال، على الهيئة إصدار قرارها خلال مدة لا تتجاوز (تسعين) يوماً من تاريخ اكتمال الطلب. وفي حال مضي المدة المشار إليها في هذه الفقرة دون صدور قرار من الهيئة فيعد ذلك في حكم الموافقة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 7 explained in plain English
This article protects the Authority from having the owner or manager of the service change without its knowledge, and specifies three actions that need permission:
- The Authority's approval before any material change in the ownership of the licensee or registrant.
- The Authority's approval before assigning the license, registration or permit to another.
- The Authority's non-objection when making a material change in the senior management of the licensee or registrant.
These obligations do not prejudice what other laws provide; that is, the action may also require approvals from other bodies under their laws.
Period for decision: the regulations set the controls and procedures for obtaining the approval or non-objection, but the article requires the Authority in all cases to issue its decision within a period not exceeding 90 days from the date the application is complete. If the period passes without a decision, that is considered approval.
What matters here is that the period starts from the completion of the application, not merely from its submission. The article does not specify what counts as a "material" change; that is left to the regulations. Anyone planning a sale or acquisition of a service provider would do well to consult a lawyer who specializes in communications and information technology laws.
Practical example
An investor agreed to buy a large stake in a licensed communications company that amounts to a material change in its ownership. The company submitted a complete application to the Authority, and 90 days passed without the Authority issuing a decision, which is considered approval.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 7 of the Saudi Communications and Information Technology Law
Can a telecom company be sold without the Authority's approval?
No. A material change in the ownership of the licensee or registrant needs the Authority's approval before it is made.
How long does the Communications Authority take to respond to an approval request?
The Authority must issue its decision within a period not exceeding 90 days from the date the application is complete.
What if the Authority does not respond within 90 days?
The passing of the period without a decision is considered approval.
Does changing the CEO need permission?
A material change in the senior management of the licensee or registrant needs the Authority's non-objection, and the regulations set the controls for this.
More articles on Licensing Telecommunications Services
- Article 4
A fee is collected for issuing and renewing licenses, providing communications or IT services commercially and using frequencies, set by the Ministry on the Authority's proposal.
1- يُستحصل مقابل مالي -يورد إلى الخزينة العامة للدولة- لإصدار التراخيص وتجديدها، ولتقديم خدمات الاتصالات أو تقنية المعلومات تجاريًّا، ولاستخدام الترددات. 2- يُس
- Article 5
The article lists activities that may be carried out only with a license from the Authority, and allows the Council to require a license or registration for other services, devices and private networks.
1- يشترط الحصول على ترخيص من الهيئة قبل القيام بأيّ مما يأتي: أ- تقديم خدمات اتصالات للعموم أو استخدام شبكة اتصالات لهذا الغرض. ب- تقديم خدمة بنية تحتية لشبكات
- Article 6
The article states when the Authority or Council may refuse renewal of, cancel, suspend or amend a license, registration or permit, and requires the Authority to ensure continuity of service.
1- للهيئة رفض طلب تجديد الترخيص أو التسجيل أو التصريح، أو إلغاء الترخيص أو التسجيل أو التصريح، أو تعليق أو تعديل أي منها؛ في أيّ من الحالات الآتية: أ- عدم معالج
- Article 8
The Council classifies licenses, registrations and permits into categories with provisions and conditions for each, and a service provider must comply with the terms of its license, registration or permit.
1- يُصنّف المجلس الترخيص والتسجيل والتصريح إلى فئات، ويضع الأحكام والشروط الخاصة بكل فئة. 2- على مقدم الخدمة الالتزام بأحكام وشروط الترخيص الممنوح له أو التسجيل
- Article 9
The Authority must establish a special register recording the data of licensees, registrants and permit holders and the category of each, with the data determined by the regulations.
تنشئ الهيئة سجلًّا خاصًّا تقيد فيه بيانات ومعلومات المرخص له أو المسجل أو المصرح له، وفئة الترخيص الممنوح له أو التسجيل أو التصريح المدرج فيه، وتحدد اللائحة تلك
- Article 12
No user or service provider may use any frequency until the Authority has allocated it to him, he has obtained the necessary license and he has paid the fee.
لا يجوز لأي مستخدم أو مقدم خدمة استخدام أي تردُّد إلا بعد تخصيصه له من الهيئة وحصوله على الترخيص اللازم وتسديد المقابل المالي.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.