Article 24 of the Saudi Privatization Law
المادة 24 من نظام التخصيص
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز -بموافقة الجهة المختصة- منح الطرف الخاص الحق فيما يأتي:
1- تحصيل المقابل المالي من المستفيدين لحسابه مباشرةً لقاء الأعمال والخدمات التي يُقدّمها؛ وفقًا لعقد الشراكة بين القطاعين العام والخاص، ويُحدّد العقد الضوابط المتعلقة بذلك.
2- تحصيل الإيرادات العامة -بما في ذلك الرسوم والضرائب- المرتبطة بعقد الشراكة بين القطاعين العام والخاص لحساب الخزينة العامة للدولة، ويُحدّد العقد الضوابط المتعلقة بذلك، وآليات توريد المبالغ المحصلة إلى الخزينة العامة.
3- تحصيل الإيرادات العامة، أو جزء منها لحسابه مباشرةً، وفقًا لما يحدده العقد.
وفي جميع الأحوال لا يجوز للطرف الخاص فرض أي مقابل مالي إضافي على المستفيدين من الأعمال والخدمات التي يقدمها بموجب عقد الشراكة بين القطاعين العام والخاص، ما لم ينص العقد 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 24 explained in plain English
This article sets out how the private party receives its money from beneficiaries, and allows three rights to be granted to it with the competent authority's approval:
- Fees for its own account: collecting fees from beneficiaries directly for its own account in return for the works and services it provides under the partnership contract, with the contract setting the controls.
- Public revenues for the Treasury's account: collecting public revenues, including fees and taxes, connected with the partnership contract for the account of the General Treasury, with the contract setting the controls and the mechanisms for remitting the sums to the Treasury.
- Public revenues for its own account: collecting public revenues, or part of them, directly for its own account as the contract specifies.
The restriction protecting beneficiaries: in all cases the private party may not impose any additional charge on beneficiaries, unless the contract provides otherwise.
In practice, what the beneficiary pays must be based on the contract; the company may not invent fees of its own accord. The text does not state the amount of the charges or fees, which the contract sets.
It is preceded by Article 23 on equality among beneficiaries and the ban on restrictive practices. A beneficiary who is asked to pay a charge that appears not to be based on the contract can inquire with the contracting authority.
Practical example
A company runs public parking in Jeddah under a partnership contract that sets the hourly price. The company may not add a new "service" fee for users unless the contract provides for it.
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 24 of the Saudi Privatization Law
Can the private company collect government fees?
Yes. With the competent authority's approval it may be given the right to collect public revenues, including fees and taxes, for the Treasury's account under the contract's controls.
Can the private party impose additional fees on beneficiaries?
In all cases it may not impose any additional charge, unless the contract provides otherwise.
More articles on Private Party's Obligations to Beneficiaries
- Article 23
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.
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 الع
- 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.