Article 30 of the Saudi Privatization Law

Many privatization projects give the private party an exclusive right, such as being the sole operator of a facility. This may look like a monopoly, and this article addresses it:

First: the rule. The private party's exercise of a right granted to it, or compliance with an obligation under the contract, is not a monopolistic practice, even if it affects or restricts competition.

The exception: if there is another suitable way to exercise the right or comply with the obligation that does not affect competition, the protection does not apply.

The conditions: the competent authority's approval is required for this, together with compliance with any controls it sets in its approval.

Second: policies. The Board of Directors of the National Center for Privatization may set policies to limit monopoly in privatization projects, after coordinating with the General Authority for Competition and other relevant entities.

In practice, the private party is protected from being accused of monopoly as long as it exercises what the contract grants in the way that least affects competition and with the competent authority's approval. If it goes beyond that or chooses a more restrictive method when a suitable alternative exists, it may be subject to the competition rules. Anyone facing an issue of this kind should consult a lawyer who specializes in commercial matters.