Article 10 of the Saudi Privatization Law
المادة 10 من نظام التخصيص
The Council of Ministers or its delegate, on the recommendation of the Ministry of Finance, may approve financial and credit support for a privatization project if the contract or subsidiary contracts do not provide for it.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز بقرار من مجلس الوزراء -أو من يُفوّضه- وبناءً على توصية من الوزارة، الموافقة على تقديم الدعم المالي والائتماني لمشروع التخصيص، إذا لم يكن منصوصًا عليه في العقد أو أي من العقود التابعة له، وذلك وفقًا لما تقضي به الأنظمة.
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 10 explained in plain English
A privatization project may need financial or credit support during implementation that the parties did not foresee when contracting. This article deals with that case:
- The case: financial and credit support not provided for in the contract or any subsidiary contract.
- Who approves: the Council of Ministers or its delegate.
- On the basis of: a recommendation from the Ministry of Finance.
- The restriction: in accordance with what the laws provide.
The meaning is that support the parties did not agree on in the contract may be approved by decision of the Council of Ministers or its delegate, on the recommendation of the Ministry of Finance.
The wording "may" means that support is not a right of the private party but a discretionary power of the government. An investor cannot rely on this article to claim support that was not included in their contract.
An investor who considers that their project needs support would do well to include it in the contract from the start, and to consult a lawyer who specializes in commercial or banking and finance matters.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 10 of the Saudi Privatization Law
Can government support be obtained that is not mentioned in the privatization contract?
It may be approved by decision of the Council of Ministers or its delegate, on the recommendation of the Ministry of Finance, and in accordance with the laws.
Is financial support a right of the private party?
No. The text makes approval of support not provided for in the contract permissible, not obligatory.
More articles on Financial Support for Privatization Projects
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.