Article 3 of the Saudi Nuisance Law

This article places a restriction on assigning the license. The license is not a right its holder may transfer to whomever he wishes; two cumulative conditions are required for assigning it:

• The assignee must meet the conditions of the license, that is, the same conditions required to grant the license in the first place.
• Approval of the authority competent to issue the license to the assignment.

If either condition is absent, the assignment is not permitted. The reason is that these activities by nature disturb comfort or are dangerous or harmful to health or the environment, so whoever carries them on must meet the conditions and be known to the competent authority.

This article is linked to Article 2, which refers to the Implementing Regulations the conditions for issuing, renewing and cancelling the license; they are the reference for the conditions the assignee must meet. It is also linked to Article 4, which requires the licensee to manage the premises himself or appoint a manager or person responsible for operation.

In practice, a person who buys an existing premises of this kind or agrees to transfer its license should remember that an agreement between the parties alone is not enough to transfer the license without the approval of the competent authority. In drafting such an agreement a lawyer specializing in commercial or administrative cases can be consulted.