Article 83 of the Saudi Government Tenders and Procurement Law
المادة 83 من نظام المنافسات والمشتريات الحكومية · الباب الخامس: بيع المنقولات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 بيعها وعرض بيعها عليهم. فإن لم يقدم سـعراً مناسـباً، جاز منحها للجمعيات والمؤسسات الأهلية أو أي كيان غير هادف للربح، على أن تُشعر الوزارة بذلك.
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 83 explained in plain English
This Article deals with the case of no buyers for movables a government entity offers for sale by auction, and sets a three-stage sequence for it:
- Re-advertising: if no one comes forward for the auction after it is advertised, it is advertised again.
- Inviting specialists: if no one comes forward the second time, the person with authority may invite specialists in the field of the items to be sold and offer them the sale.
- Granting to non-profits: if no suitable price is offered, the movables may be granted to associations, civil institutions or any non-profit entity, provided the Ministry (the Ministry of Finance) is notified.
Note that moving to the third stage depends on no suitable price being offered; a small number of offers alone is not enough. The grant is also discretionary, not an obligation on the entity.
The Article does not say who the person with authority is or how a suitable price is assessed, and Article 84 refers to the Implementing Regulations to set the auction procedures and the formation of the sales committees.
This Article follows Article 82, which governs auction guarantees (2% with a sealed bid and 5% for the bidder to whom it is awarded, and 5% in an open auction). Civil associations and non-profit entities benefit from this provision, since they may be granted movables that found no buyer at a suitable price.
Practical example
A government entity in Najran advertised old medical devices for sale by auction and no one came forward, so it re-advertised without result. It invited specialists in the field and offered them the devices, but they did not offer a suitable price, so it became permissible to grant the devices to a civil association, with notice to the Ministry of Finance.
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 83 of the Saudi Government Tenders and Procurement Law
What happens if no one comes forward for a government auction?
It is advertised again, and if no one comes forward, the person with authority may invite specialists and offer the sale to them.
Can government movables be granted to charities?
They may be granted to associations, civil institutions or any non-profit entity if no suitable price is offered, with notice to the Ministry.
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 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 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.