Article 3 of the Saudi Privatization Law
المادة 3 من نظام التخصيص
The article sets the government's aims in privatization projects, including rationalizing spending, increasing revenues, raising service quality, encouraging the private sector, widening citizens' participation and creating jobs.
Official text (Arabic)
This article has not been amended since the law was issued.
تسعى الحكومة من خلال مشاريع التخصيص إلى تحقيق الأهداف الآتية:
1- المساعدة في تحقيق الأهداف الاستراتيجية للجهات الحكومية، وترشيد الإنفاق العام، وزيادة إيرادات الدولة، ورفع كفاءة الاقتصاد الوطني، وزيادة قدرته التنافسية لمواجهة التحديات والمنافسة الإقليمية والدولية ذات الصلة بمشاريع التخصيص.
2- رفع مستوى شمولية وجودة الخدمات وتوفيرها في الوقت والتكلفة المناسبين، ورفع كفاءة الأصول ذات الصلة بمشاريع التخصيص، وتحسين مستوى إدارتها، والعمل على تجهيز أو إعادة هيكلة القطاعات والأجهزة والأصول والخدمات العامة المراد تخصيصها.
3- تحفيز القطاع الخاص المحلي والأجنبي على الاستثمار والمشاركة الفاعلة في الاقتصاد الوطني من خلال مشاريع تحقق الجدوى التنموية للحكومة والجدوى الاقتصادية للقطاعين العام والخاص، وزيادة حصة القطاع الخاص في الناتج المحلي بما يحقق نموًّا في الاقتصاد الوطني.
4- العمل على توسيع نطاق مشاركة المواطنين في ملكية الأصول الحكومية، وزيادة فرص العمل والتشغيل الأمثل للقوى الوطنية العاملة.
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 3 explained in plain English
This article shows why the government turns to privatization, and groups its aims into four sets:
- Financial and economic aims: helping achieve the strategic aims of government entities, rationalizing public spending, increasing state revenues, and raising the efficiency of the national economy and its competitiveness regionally and internationally.
- Service aims: raising the comprehensiveness and quality of services and providing them at the right time and cost, raising the efficiency of assets and improving their management, and preparing or restructuring the sectors, bodies, assets and public services to be privatized.
- Investment aims: encouraging the local and foreign private sector to invest through projects that achieve development feasibility for the government and economic feasibility for both sectors, and increasing the private sector's share of the domestic product.
- Social aims: widening citizens' participation in owning government assets, and increasing job opportunities and the optimal employment of the national workforce.
These aims do not create direct rights for individuals, but they help in understanding the spirit of the Law and interpreting its provisions where they are unclear. When the authorities decide to offer or amend a project, they do so in light of these aims. It is preceded by Article 2 on identifying the competent authorities, and followed by Article 4, which sets the Law's scope of application.
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 3 of the Saudi Privatization Law
What are the aims of privatization in Saudi Arabia?
They include rationalizing public spending and increasing revenues, raising service quality, encouraging the local and foreign private sector, widening citizens' participation in owning assets, and increasing job opportunities.
Does privatization aim to employ citizens?
Yes. One of its aims is to increase job opportunities and the optimal employment of the national workforce.
More articles on Scope and Aims of the Privatization Law
- Article 1
The article defines the terms of the Privatization Law, including privatization, public-private partnership, asset ownership transfer, private party, subsidiary contract and unsolicited offer.
يقصد بالألفاظ والعبارات الآتية -أينما وردت في هذا النظام- المعاني الموضّحة أمام كل منها ما لم يقتض السياق غير ذلك: النظام: نظام التخصيص. المجلس: مجلس الشؤون الا
- Article 4
The Privatization Law applies to contracts of ministries, government bodies and government companies more than 50% owned that are set up to carry out a privatization project. It does not apply to earlier contracts unless amended, extended or renewed after it takes effect.
تسري أحكام النظام على جميع العقود التي تجريها الوزارات والأجهزة الحكومية الأخرى، والشركات التي تؤسسها الحكومة، أو تتملك فيها وتصل نسبة ملكيتها فيها -بشكل مباشر
- Article 9
On the recommendation of the Center's board of directors, the Council of Economic and Development Affairs may decide to treat or not treat any infrastructure or public service project as a privatization project.
للمجلس بناءً على توصية من مجلس إدارة المركز النظر في أي مشروع مرتبط بالبنية التحتية، أو الخدمات العامة؛ ليقرر اعتباره (أو عدم اعتباره) مشروعاً من مشاريع الشراكة
- 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
- Article 45
The Privatization Law repeals any provisions that conflict with it and takes effect 120 days after its publication in the Official Gazette.
يلغي النظام كل ما يتعارض معه من أحكام، ويُعمل به بعد مضي (مائة وعشرين) يومًا من تاريخ نشره في الجريدة الرسمية.
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.