Article 85 of the Saudi Government Tenders and Procurement Law
المادة 85 من نظام المنافسات والمشتريات الحكومية · الباب الخامس: بيع المنقولات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة الحكومية تأمين بعض احتياجاتها بطريقة الاستئجار، أو استبدال ما لديها من منقولات بأخرى جديدة، وفقاً للضوابط التي تحددها اللائحة.
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 85 explained in plain English
This Article gives the government entity two alternatives to direct purchase for meeting its needs:
1- Renting: the entity may meet some of its needs by renting rather than owning. The phrase "some of its needs" indicates that renting is not a general substitute for all purchases, but a means for some of them.
2- Replacement: the entity may replace the movables it has with new ones, for example by offering the old movables as part of the deal for obtaining the new ones.
The provision in both cases is discretionary ("the government entity may") and subject to the rules set by the Implementing Regulations. The text does not say when renting is more suitable, how replaced movables are valued, or how to contract with the lessor or supplier; all of this is left to the Implementing Regulations.
This Article sits in the chapter on selling movables, after Article 84, which refers to the Implementing Regulations the auction procedures and the formation of sales committees, and before Article 86, which begins the provisions on hearing grievances by forming a committee competent over grievances of bidders and contractors and requests for price adjustment.
The Article matters to companies that offer rental or replacement services, such as vehicle and equipment rental companies, since it opens a way for them to deal with government entities. To learn the contracting requirements in these cases, refer to the Implementing Regulations or consult a lawyer specialized in government contracts.
Practical example
A government entity in Riyadh needs vehicles for a field team for a set period, so it chose to rent them from a rental company rather than buy them. It also decided to replace its old printers with new ones. It may do both under the rules set by the Implementing Regulations.
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 85 of the Saudi Government Tenders and Procurement Law
May government entities rent vehicles and equipment?
Yes, they may meet some of their needs by renting, under the rules set by the Implementing Regulations.
Can a government entity replace its old movables with new ones?
Yes, it may do so under the rules set by the Implementing Regulations.
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 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.
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.