Article 81 of the Saudi Government Tenders and Procurement Law
المادة 81 من نظام المنافسات والمشتريات الحكومية · الباب الخامس: بيع المنقولات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تُباع المنقولات التي تقل قيمتها التقديرية عن (مائتي ألف) ريال؛ إما بالمزايدة العامة، أو بالطريقة التي تراها الجهة الحكومية محققة لمصلحة الخزينة العامة للدولة، بشرط أن تتيح الجهة المجال لأكبر عدد من المزايدين.
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 81 explained in plain English
This Article completes what Article 80 provides. That Article governs the sale by public auction of movables with an estimated value of SAR 200,000 or more; this Article deals with movables whose estimated value is below SAR 200,000.
Two methods of sale:
- Public auction; or
- the method the government entity considers to serve the interest of the State's public treasury.
The Article gives the entity flexibility in choosing how to sell these lower-value movables, but that flexibility is not unlimited.
The restriction: the entity must give the widest possible number of bidders the opportunity. According to the text, the entity may not sell the movables in a way that limits the opportunity to one person or a small number without justification, because the aim is the best return for the public treasury.
The Article does not specify particular forms of the alternative method, or detailed procedures for it.
It is followed by Article 82, which governs guarantees in auctions: 2% with the bid in a sealed-bid auction, rising to 5% for the bidder to whom it is awarded, and 5% for the bidder to whom an open auction is awarded.
Practical example
A government entity in Tabuk has used office equipment with an estimated value of SAR 40,000. It may sell it by public auction or by another method serving the interest of the public treasury, provided it gives the widest possible number of interested buyers the opportunity.
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 81 of the Saudi Government Tenders and Procurement Law
How are government movables worth less than SAR 200,000 sold?
Either by public auction or by the method the entity considers to serve the interest of the State's public treasury.
May a government entity sell movables directly to a single person?
The Article requires in all cases that the entity give the widest possible number of bidders the opportunity.
More articles on Selling Government Movables
- Article 80
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.
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
- 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.