Article 2 of the Saudi Privatization Law
المادة 2 من نظام التخصيص
The article leaves it to the regulatory rules issued by the Council of Ministers to identify the competent authority for approvals, the executing entity that studies, offers and awards projects and concludes contracts, and the related entities.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تحدد القواعد المنظمة -بحسب مشروع التخصيص- الجهة (الجهات) التي لها صلاحية إصدار الموافقات اللازمة لمشاريع التخصيص بما في ذلك الموافقة على طرح المشاريع، وترسيتها، وإبرام العقود، أو ممارسة أي صلاحيات أو مهمات أخرى وفقًا للنظام، وضوابط ممارستها لصلاحياتها، ومهماتها، ويطلق عليها في النظام الجهة المختصة.
2- تحدد القواعد المنظمة -بحسب مشروع التخصيص- الجهة (الجهات) التي يكون لها مهمات دراسة وتحضير مشاريع التخصيص، وصلاحيات طرح المشاريع وترسيتها، وإبرام العقود، أو ممارسة أي صلاحيات أو مهمات أخرى وفقًا للنظام، وضوابط ممارستها لصلاحياتها، ومهماتها، ويطلق عليها في النظام الجهة التنفيذية.
3- تحدد القواعد المنظمة الجهات ذات العلاقة في شأن تنفيذ مشروع التخصيص، وذلك بحسب مشروع التخصيص، وصلاحياتها، واختصاصاتها.
4- يُصدر مجلس الوزراء القواعد المنظمة المشار إليها في الفقرات (1) و(2) و(3) من هذه المادة.
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 2 explained in plain English
This article determines who holds the decision in privatization projects, but it does not name particular bodies. It refers this to regulatory rules issued by the Council of Ministers, which differ according to each project:
- The competent authority: the body or bodies with the power to issue the necessary approvals, such as approving the offering of the project, awarding it and concluding the contract, or any other powers under the Law, with the controls for exercising them.
- The executing entity: the body or bodies that study and prepare privatization projects, with powers of offering, awarding and concluding contracts or others under the Law, with the controls for exercising them.
- The related entities: the regulatory rules also identify the other bodies concerned with implementing the project and their powers and competences.
The importance of this article is that the terms "competent authority" and "executing entity" recur in most of the Law's articles, and many decisions, such as canceling an offering or extending or terminating a contract, need the competent authority's approval. To identify the body concerned in a particular project, one must refer to the regulatory rules issued by the Council of Ministers for that project, not to the Law itself.
It is followed by Article 3, which sets out the government's aims in privatization projects.
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 2 of the Saudi Privatization Law
Who determines the competent authority in a privatization project?
The regulatory rules determine it for each project, and the Council of Ministers issues these rules.
What is the difference between the competent authority and the executing entity?
The competent authority issues the necessary approvals such as approval of the offering and award, while the executing entity studies and prepares the project and handles the offering, award and conclusion of contracts.
More articles on Authorities Responsible for Privatization Projects
- Article 6
The executing entity must carry out a comprehensive analysis and study when requesting approval from the Ministry or the competent authority, and the competent authority issues its approval only after the Ministry of Finance approves.
1- يتعيّن على الجهة التنفيذية عند طلب موافقة الوزارة أو الجهة المختصة على أي من المهمات الموكولة إليها بموجب أحكام النظام؛ إجراء تحليل ودراسة شاملة لموضوع الطلب
- Article 7
A government infrastructure or public service project whose estimated value exceeds a limit set by the Council of Ministers, or whose contract lasts five years or more, is referred to the Center for a preliminary study within 60 working days.
1- في حال صدور موافقة من الجهة المعنية نظامًا على مشروع بنية تحتيّة أو خدمة عامة لجهة حكومية، وكانت القيمة المقدرة للمشروع تتجاوز الحد الذي يُعيّنه مجلس الوزراء
- Article 11
Where a license or permit needed for a privatization project cannot be issued or is delayed by the competent government entity, the Council of Economic and Development Affairs issues its direction to it on the basis of a report prepared by the executing entity.
دون الإخلال بأحكام العقد المتعلقة بتوزيع المخاطر بين أطراف العقد، عند تعذر إصدار رخصة، أو ترخيص، أو تصريح لازم لأي مشروع تخصيص، أو تأخر إصداره من قبل الجهة الحك
- Article 44
The Board of Directors of the National Center for Privatization issues the Implementing Regulations, tender templates and documents, contract templates, and templates of mandatory and guidance contract clauses for privatization projects.
يصدر مجلس إدارة المركز ما يأتي: 1- اللائحة التنفيذية. 2- نماذج المنافسة، ونماذج وثائق المنافسة، ونماذج العقود المتعلقة بمشاريع التخصيص. 3- نماذج البنود التعاقدي
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.