Article 23 of the Saudi Privatization Law
المادة 23 من نظام التخصيص
The private party must treat beneficiaries with full equality and may not refuse to provide services or tie them to other services, unless the contract provides otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يلتزم الطرف الخاص بالتعامل مع المستفيدين من الأعمال والخدمات التي يُقدّمها بمساواة تامّة، وفق شروط العقد -أو العقد التابع- وأحكامه، ما لم يُنشئ العقد -أو العقد التابع- حقوقًا خاصة بفئات مُعيّنة منهم، أو ينص العقد على غير ذلك.
2- لا يجوز للطرف الخاص الامتناع عن تقديم الأعمال والخدمات للمستفيدين، أو تقييد تقديمها بالاستفادة من خدمات أخرى، أو غير ذلك من الممارسات التقييديّة، ما لم ينص العقد -أو العقد التابع- على غير ذلك.
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 23 explained in plain English
This article protects beneficiaries, meaning the public who receive the service from the private company after privatization:
First: full equality. The private party must deal with the beneficiaries of its works and services with full equality under the terms of the contract or subsidiary contract. The exceptions are:
- If the contract created special rights for certain categories of beneficiaries, such as discounts for a specific category; or
- If the contract provides otherwise.
Second: no restrictive practices. The private party may not:
- Refuse to provide the works and services to beneficiaries.
- Restrict providing them on condition of using other services, such as requiring the purchase of an additional service.
- Engage in any other restrictive practices.
All of this applies unless the contract or subsidiary contract provides otherwise.
In practice, a public service does not lose its public character by moving to the private sector; the company may not choose its customers or discriminate between them except as far as the contract allows. A beneficiary who is denied the service or discriminated against may consult a lawyer who specializes in civil or administrative matters. Article 24 on collecting fees follows.
Practical example
A private company runs a public transport service in a city under a partnership arrangement. It may not refuse to carry a passenger without a reason the contract allows, nor require the passenger to buy a subscription to another service in order to provide the basic service.
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 23 of the Saudi Privatization Law
Can the private company refuse to provide a privatized public service?
It may not refuse to provide the works and services to beneficiaries unless the contract provides otherwise.
Can the private party discriminate between beneficiaries?
It must treat them with full equality, unless the contract created special rights for certain categories or provides otherwise.
More articles on Private Party's Obligations to Beneficiaries
- Article 24
With the competent authority's approval, the private party may be given the right to collect fees and public revenues under the contract, without imposing any additional charge on beneficiaries unless the contract provides.
يجوز -بموافقة الجهة المختصة- منح الطرف الخاص الحق فيما يأتي: 1- تحصيل المقابل المالي من المستفيدين لحسابه مباشرةً لقاء الأعمال والخدمات التي يُقدّمها؛ وفقًا لعق
- Article 26
This article requires the private party to provide the information, documents and reports that let the contracting authority supervise performance of the contract, and to enable its authorized representatives to carry out monitoring tasks, within the contract's controls.
يتعيّن على الطرف الخاص توفير كافة المعلومات والوثائق والتقارير التي تتيح للجهة التنفيذية ممارسة رقابتها على تنفيذ العقد -أو العقد التابع- وتمكين ممثلي الجهة الت
- Article 30
A private party exercising its contractual rights is not engaged in monopolistic practice unless a suitable alternative that does not affect competition exists, subject to the competent authority's approval.
1- لا تُعدّ ممارسة الطرف الخاص لحق ممنوح له، أو التقيد بأي التزام بموجب العقد؛ ممارسةً احتكارية، وإن ترتب عليها تأثير على المنافسة أو تقييدها، ما لم تكن هناك وس
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.

