Article 41 of the Saudi Privatization Law
المادة 41 من نظام التخصيص
This article refers to the Implementing Regulations the rules on unsolicited offers from permitted sectors, their conditions, procedures and the offeror's rights; an offer goes to the contracting authority for initial study, then proceeds under the Law if suitable.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تُحدّد اللائحة التنفيذية الأحكام المتعلقة بالعرض التلقائي، بما في ذلك ما يأتي:
أ- تحديد قطاعات البنى التحتيّة والخدمات العامة المسموح بتقديم عروض تلقائية في شأنها.
ب- الشروط والعناصر الواجب توافرها في العرض.
ج- الضوابط والإجراءات المتعلقة بتقديم واستقبال ودراسة العرض التلقائي، واتخاذ قرار في شأنه.
د- الحالات التي يجوز فيها فرض مقابل مالي لدراسة العرض التلقائي.
هـ- حقوق مُقدّم العرض التلقائي، التي يجوز أن تشمل التعويضات المستحقة له.
و- الضوابط المرتبطة بحقوق الملكيّة الفكريّة والأسرار التجاريّة وغير ذلك من الحقوق التي تتعلق بالعرض التلقائي.
2- يُقدّم العرض التلقائي إلى الجهة التنفيذية المعنيّة التي تتولى دراسته مبدئيًّا للنظر فيه، وإذا رأت أن المشروع المقترح في العرض التلقائي مناسبًا من حيث المبدأ، فتُستكمل إجراءات دراسته، وتحضيره، وطرحه، وترسيته؛ وفقًا لأحكام النظام.
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 41 explained in plain English
An unsolicited offer is when an investor takes the initiative to propose a privatization project to the government without it having requested offers. This article regulates it at two levels:
First: what the Implementing Regulations determine:
- The infrastructure and public service sectors in which unsolicited offers are permitted.
- The conditions and elements an offer must contain.
- The controls and procedures for submitting, receiving, studying and deciding on an offer.
- The cases in which a fee may be imposed for studying the offer.
- The offeror's rights, which may include compensation to it.
- The controls on intellectual property rights, trade secrets and other rights relating to the offer.
Second: the path of the offer:
- The offer is submitted to the relevant contracting authority.
- It studies it in an initial study.
- If it considers the proposed project suitable in principle, the procedures for studying, preparing, tendering and awarding it are completed under the provisions of the Law.
The important point is that submitting an unsolicited offer does not mean its submitter will get the project; the project is tendered and awarded under the Law. The offeror's rights are set by the Regulations. Anyone thinking of submitting an unsolicited offer should review the Regulations and consult a lawyer who specializes in commercial matters to protect their ideas and trade secrets.
Practical example
A company in Jeddah prepared a study for a waste-to-energy project and submitted it as an unsolicited offer to the relevant contracting authority. The authority studied it initially and found it suitable, so it completed the tendering and award procedures under the Law, and the company's rights as the offeror are determined under the Regulations.
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 41 of the Saudi Privatization Law
What is an unsolicited offer in privatization projects?
An offer relating to a privatization project that the investor submits on its own initiative, not in response to a request for proposals.
Does the submitter of an unsolicited offer get the project directly?
No. If the contracting authority considers the project suitable in principle, the procedures for studying, tendering and awarding it are completed under the provisions of the Law.
Is the submitter of an unsolicited offer compensated?
The Regulations set the offeror's rights, which may include compensation due to it.
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 32
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.
1- يضع مجلس إدارة المركز الأحكام المنظمة للمنافسات والمشتريات لجميع التعاقدات اللازمة لتنفيذ عمليات التخصيص. 2- يضع مجلس إدارة المركز -بالتنسيق مع الهيئة العامة
- 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
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.