Article 32 of the Saudi Privatization Law
المادة 32 من نظام التخصيص
The Center's Board sets the rules for tenders and procurement in privatization contracts and for State leasing and vacating of real estate in coordination with the State Properties Authority, and the general laws apply where there is no special provision.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يضع مجلس إدارة المركز الأحكام المنظمة للمنافسات والمشتريات لجميع التعاقدات اللازمة لتنفيذ عمليات التخصيص.
2- يضع مجلس إدارة المركز -بالتنسيق مع الهيئة العامة لعقارات الدولة- الأحكام المنظمة لاستئجار الدولة للعقار وإخلائه، وذلك لأغراض مشاريع التخصيص.
3- تسري الأحكام النظامية المنظمة للمنافسات والمشتريات الحكومية، والأحكام المنظمة لاستئجار الدولة للعقار وإخلائه؛ على مشاريع التخصيص الخاضعة لأحكام النظام، وذلك فيما لم يرِد به نص خاص فيما يصدره مجلس إدارة المركز من أحكام وفقًا للفقرتين (1) و(2) من هذه المادة، أو يقرر مجلس إدارة المركز عدم سريان تلك الأحكام على مشاريع التخصيص.
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 32 explained in plain English
This article sets out the rules governing procurement and real estate in privatization projects:
- Tenders and procurement: the Center's Board of Directors sets the rules governing tenders and procurement for all contracts needed to carry out privatization operations.
- Leasing and vacating real estate: the Center's Board of Directors, in coordination with the General Authority for State Properties, sets the rules governing the State's leasing and vacating of real estate for the purposes of privatization projects.
- General laws: the general statutory provisions on government tenders and procurement, and on the State's leasing and vacating of real estate, apply to privatization projects, but they do not apply in two cases:
- If there is a special provision in what the Center's Board of Directors issues under paragraphs (1) and (2).
- Or if the Center's Board of Directors decides they do not apply to privatization projects.
In practice, the Center's special rules take precedence over the general rules, and the general rules fill in what the Center's rules do not address. Anyone dealing with a privatization project should first look at the Center's rules, then turn to the general laws for anything not covered.
The text does not state the content of these rules. Anyone facing an issue in a tender or real estate matter connected with a privatization project should consult a lawyer who specializes in administrative or real estate matters.
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 32 of the Saudi Privatization Law
Does the government tenders and procurement law apply to privatization projects?
It applies where there is no special provision in the rules of the Center's Board of Directors, unless the Board decides it does not apply.
Who sets the rules for State leasing of real estate in privatization projects?
The Center's Board of Directors, in coordination with the General Authority for State Properties.
More articles on Tendering and Awarding Privatization Projects
- Article 5
The article leaves it to the Implementing Regulations to specify the privatization methods available for public-private partnerships or asset ownership transfers, and the conditions and controls for each method.
تحدد اللائحة التنفيذية أساليب التخصيص الممكن اتباعها والمتعلقة بالشراكة بين القطاعين العام والخاص، أو بنقل ملكية الأصول، والشروط والضوابط اللازمة لكل أسلوب من ه
- Article 12
Privatization projects are generally offered through public competition, and may be offered through limited competition, direct contracting or other means suited to the project; the regulations set the rules for each means.
1- يتم طرح مشروع التخصيص من خلال منافسة عامة، ويمكن طرحه عن طريق منافسة محدودة، أو بالتعاقد المباشر، أو غير ذلك من وسائل الطرح المناسبة بحسب طبيعة المشروع. 2- ي
- Article 13
The executing entity may cancel the offering of a privatization project at any time before signing the contract, with the competent authority's approval, in the public interest. Competitors are not entitled to compensation unless the Center's board of directors decides otherwise.
للجهة التنفيذية في أي وقت قبل توقيع العقد إلغاء طرح مشروع التخصيص، بعد موافقة الجهة المختصة متى رأت في ذلك تحقيقًا للمصلحة العامة. وفي هذه الحالة؛ لا يستحق أي م
- Article 35
Arabic is the language of privatization tender documents and of concluding contracts and subsidiary contracts, and another language may be used after the competent authority's approval.
تكون اللغة العربية هي اللغة التي تصدر بها وثائق الطرح ويُبرم بها العقد -أو العقد التابع- ويجوز إصدار وثائق الطرح وإبرام العقد -أو العقد التابع- بلغة أخرى بعد مو
- Article 36
This article applies to foreign investors the same criteria and procedures as local ones in tendering and awarding privatization projects, and gives them the same treatment in everything arising from the Law or the contract.
دون الإخلال بأحكام الأنظمة، وبأي التزام للمملكة بموجب الاتفاقيات الدولية أو الإقليمية التي تكون المملكة طرفًا فيها، تُطبَّق على المستثمر الأجنبي المعايير والضوا
- 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
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.