Article 80 of the Saudi Government Tenders and Procurement Law
المادة 80 من نظام المنافسات والمشتريات الحكومية · الباب الخامس: بيع المنقولات
The Article allows a government entity to transfer its surplus movables to other government entities, and if they do not want them, to sell them by public auction when their value is SAR 200,000 or more.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة الحكومية التنازل عما تستغني عنه من منقولات إلى الجهات الحكومية والجهات التابعة لها، على أن تشعر الوزارة بذلك. وتُحيط الجهة الحكومية المالكة للمنقولات -من خلال البوابة- الجهات الحكومية بأصناف المنقولات وكمياتها، وتحدد لها مدة للإفصاح عن رغبتها فيها. فإن لم ترد خلال تلك المدة جاز لها بيعها عن طريق المزايدة العامـة إذا بلغت قيمتها التقديريـة (مائتي ألف) ريال فأكثر، بعد الإعلان عنها في البوابة وموقعها الإلكتروني؛ طبقاً لقواعد الإعلان عن المنافسات العامة.
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 80 explained in plain English
This Article begins the provisions on selling movables, meaning movable assets a government entity no longer needs, such as furniture, vehicles and equipment.
Step one: transfer to government entities. An entity may transfer movables it no longer needs to government entities and bodies affiliated with them, and must notify the Ministry (the Ministry of Finance) of this.
Step two: notice through the Portal. The owning entity informs government entities, through the Portal, the unified electronic portal for government procurement, of the types and quantities of the movables, and sets a period for them to declare their interest.
Step three: sale by public auction. If the entities do not respond within that period, the movables may be sold by public auction if their estimated value is SAR 200,000 or more, on these conditions:
- they are advertised on the Portal and on "its website", as the text puts it.
- the rules for advertising public tenders are followed.
Movables with an estimated value below SAR 200,000 are governed by Article 81, which allows them to be sold by public auction or by the method the entity considers to serve the interest of the public treasury, provided the widest possible number of bidders is given the opportunity.
Individuals and companies wishing to buy government movables benefit from this Article, since they know that large auctions are announced on the Portal.
Practical example
A government entity in Riyadh no longer needed an old fleet of vehicles with an estimated value of SAR 600,000. It informed government entities through the Portal and set a period to declare interest. No entity responded, so it advertised the sale by public auction on the Portal and its website.
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 80 of the Saudi Government Tenders and Procurement Law
How does a government entity dispose of movables it does not need?
It may transfer them to government entities and bodies affiliated with them, notifying the Ministry, and if they do not want them, they may be sold.
When are government movables sold by public auction?
If government entities do not respond within the set period, they may be sold by public auction if their estimated value is SAR 200,000 or more, after being advertised on the Portal and its website.
Where are government entity auctions announced?
On the unified electronic portal for government procurement and "its website", as the text puts it, following the rules for advertising public tenders.
More articles on Selling Government Movables
- Article 81
Government movables with an estimated value below SAR 200,000 are sold by public auction or by a method serving the treasury's interest, with the widest possible number of bidders given the chance.
تُباع المنقولات التي تقل قيمتها التقديرية عن (مائتي ألف) ريال؛ إما بالمزايدة العامة، أو بالطريقة التي تراها الجهة الحكومية محققة لمصلحة الخزينة العامة للدولة، ب
- Article 82
The Article sets the guarantees for auctions of government movables: 2% with a sealed bid, raised to 5% for the winner, and 5% in an open auction, where a bank check or cash is accepted.
1- إذا كانت المزايدة بعروض مختومة، يقدم المزايد مع عرضه ضماناً ابتدائياً قدره (2%) من قيمة العرض. 2- على من ترسو عليه المزايدة زيادة ضمانه إلى (5%) من قيمة عرضه
- Article 83
The Article explains what happens if no one comes forward for an auction of movables: re-advertising, then inviting specialists, then possibly granting them to associations or non-profit entities, with notice to the Ministry.
إذا لم يتقدم أحد للمزايدة بعد الإعلان عنها، فيعلن عنها مرة أخرى. فإن لم يتقدم أحد للمرة الثانية، فلصاحب الصلاحية الحق في دعوة مختصين في مجال الأصناف المراد بيعه
- Article 84
The Article refers to the Implementing Regulations the setting of auction procedures for government movables and how the sales committees are formed.
تحدد اللائحة إجراءات المزايدة وتكوين لجان البيع فيها.
- Article 85
The Article allows a government entity to meet some of its needs by renting, or to replace its movables with new ones, under rules set by the Implementing Regulations.
للجهة الحكومية تأمين بعض احتياجاتها بطريقة الاستئجار، أو استبدال ما لديها من منقولات بأخرى جديدة، وفقاً للضوابط التي تحددها اللائحة.
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.