Article 12 of the Saudi Privatization Law
المادة 12 من نظام التخصيص
Privatization projects are generally offered through public competition, and may be offered through limited competition, direct contracting or other means suited to the project; the regulations set the rules for each means.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يتم طرح مشروع التخصيص من خلال منافسة عامة، ويمكن طرحه عن طريق منافسة محدودة، أو بالتعاقد المباشر، أو غير ذلك من وسائل الطرح المناسبة بحسب طبيعة المشروع.
2- يحدد مجلس إدارة المركز، من خلال اللائحة التنفيذية، الأحكام التي تنظم كل وسيلة من وسائل الطرح، والقواعد، والضوابط والإجراءات، والمدد اللازمة، والآثار المترتبة على مخالفة أي من تلك الأحكام.
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 12 explained in plain English
This article regulates how privatization projects are offered to investors:
First: the means.
- The rule: offering through an open public competition.
- The alternatives: offering may be through limited competition, direct contracting, or other suitable means of offering according to the nature of the project.
Second: the detailed regulation. The board of directors of the National Center for Privatization sets, through the Implementing Regulations:
- The provisions governing each means.
- The rules, controls and procedures.
- The periods required.
- The consequences of violating those provisions.
The text does not specify the cases in which limited competition or direct contracting may be used; the regulations set those out. The practical meaning is that an investor who wants to participate must follow offering announcements and learn the means adopted and its conditions in the regulations and the competition documents.
It is followed by Article 13, which allows an offering to be canceled before the contract is signed. A person who considers that the offering procedures violated the provisions should consult a lawyer who specializes in administrative matters.
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 12 of the Saudi Privatization Law
What is the usual way of offering a privatization project?
The rule is that it is offered through public competition.
Is direct contracting allowed in privatization projects?
Yes. Offering may be through direct contracting or limited competition or other means according to the nature of the project, under the regulations' provisions.
Who sets the offering procedures and periods?
The board of directors of the National Center for Privatization sets them through the Implementing Regulations.
More articles on Tendering and Awarding Privatization Projects
- Article 5
The article leaves it to the Implementing Regulations to specify the privatization methods available for public-private partnerships or asset ownership transfers, and the conditions and controls for each method.
تحدد اللائحة التنفيذية أساليب التخصيص الممكن اتباعها والمتعلقة بالشراكة بين القطاعين العام والخاص، أو بنقل ملكية الأصول، والشروط والضوابط اللازمة لكل أسلوب من ه
- Article 13
The executing entity may cancel the offering of a privatization project at any time before signing the contract, with the competent authority's approval, in the public interest. Competitors are not entitled to compensation unless the Center's board of directors decides otherwise.
للجهة التنفيذية في أي وقت قبل توقيع العقد إلغاء طرح مشروع التخصيص، بعد موافقة الجهة المختصة متى رأت في ذلك تحقيقًا للمصلحة العامة. وفي هذه الحالة؛ لا يستحق أي م
- Article 32
The Center's Board sets the rules for tenders and procurement in privatization contracts and for State leasing and vacating of real estate in coordination with the State Properties Authority, and the general laws apply where there is no special provision.
1- يضع مجلس إدارة المركز الأحكام المنظمة للمنافسات والمشتريات لجميع التعاقدات اللازمة لتنفيذ عمليات التخصيص. 2- يضع مجلس إدارة المركز -بالتنسيق مع الهيئة العامة
- Article 35
Arabic is the language of privatization tender documents and of concluding contracts and subsidiary contracts, and another language may be used after the competent authority's approval.
تكون اللغة العربية هي اللغة التي تصدر بها وثائق الطرح ويُبرم بها العقد -أو العقد التابع- ويجوز إصدار وثائق الطرح وإبرام العقد -أو العقد التابع- بلغة أخرى بعد مو
- Article 36
This article applies to foreign investors the same criteria and procedures as local ones in tendering and awarding privatization projects, and gives them the same treatment in everything arising from the Law or the contract.
دون الإخلال بأحكام الأنظمة، وبأي التزام للمملكة بموجب الاتفاقيات الدولية أو الإقليمية التي تكون المملكة طرفًا فيها، تُطبَّق على المستثمر الأجنبي المعايير والضوا
- Article 40
The Implementing Regulations set the rules for implementing the Privatization Law, including the project document, project priorities, selecting consultants, monitoring contracts, the effect of emergencies, and criteria for treating a project as privatization.
1- تحدد اللائحة التنفيذية الأحكام اللازمة لتنفيذ النظام بما في ذلك ما يأتي: أ- الأحكام المتعلقة بوثيقة مشروع التخصيص، وآلية التواصل بالقطاع الخاص. ب- الأسس اللا
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.