Article 42 of the Saudi Privatization Law
المادة 42 من نظام التخصيص
This article requires anyone who learns confidential information through their job or work, or holds documents not authorized for publication about a privatization project, to keep them confidential and not disclose them except as the laws allow.
Official text (Arabic)
This article has not been amended since the law was issued.
يتعين على كل من يطلّع بحكم وظيفته أو عمله على معلومات سرية أو يحوز وثائق مرتبطة بمشروع تخصيص غير مصرّح بنشرها؛ الالتزام بالمحافظة على سريّتها، وعدم إفشائها إلاّ وفق ما يسمح به النظام والأنظمة الأخرى، وعليه اتخاذ ما يلزم من إجراءات لحماية سرية المعلومات والوثائق.
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 42 explained in plain English
Privatization projects involve sensitive information, such as bid details, prices and financial studies. This article protects that information:
Who is bound? Anyone who learns confidential information through their job or work, or holds documents connected with a privatization project that are not authorized for publication. This includes employees of government entities, consultants, employees of the private party, and others.
What are the obligations?
- Keeping the information and documents confidential.
- Not disclosing them except as this Law and other laws permit.
- Taking the steps needed to protect their confidentiality. The obligation is therefore not only passive but includes actual protection, such as storing documents securely.
In practice, leaking a competitor's bid, or publishing a project's financial study before it is authorized, is a breach of this obligation. This article itself does not state a penalty.
It is followed by Article 43, which bars the contracting authority's staff and consultants from any private interest in the project; together the two articles protect the integrity of privatization projects. Anyone harmed by the disclosure of confidential information about their bid may consult a lawyer who specializes in commercial matters to assess their rights.
Practical example
Khaled works as a financial consultant for a contracting authority on a privatization project and has seen the competitors' financial bids. He may not show these bids to anyone, and must store the files in a way that prevents unauthorized people from reaching them.
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 42 of the Saudi Privatization Law
Is a consultant bound to keep privatization project information confidential?
Yes. Anyone who learns confidential information about the project through their job or work must keep it confidential and not disclose it except as the laws allow.
Is it enough not to disclose the information?
No. The steps needed to protect the confidentiality of the information and documents must also be taken.
More articles on Privatization Project Register and Conflicts of Interest
- Article 31
The Center maintains a register of privatization projects open to entities and the public; the contracting authority and private party must supply it with information, and project documents may not be published before the Center publishes them without approval.
1- يُعدّ المركز سجلًّا لمشاريع التخصيص يتضمّن قاعدة بيانات كاملة، ومُحدّثة، ودقيقة؛ تتضمن جميع المعلومات المتعلقة بمشاريع التخصيص. 2- يتعيّن على الجهة التنفيذية
- Article 43
This article bars the contracting authority's staff, its consultants and participating employees from any interest or benefit in a privatization project for themselves or their spouses, ascendants or descendants, and requires immediate disclosure and abstaining from participation.
1- يحظر على أي من منسوبي الجهة التنفيذية، أو أي استشاري لها، أو أي موظف عام آخر يشارك في المهمات المرتبطة بمشروع التخصيص؛ أن تكون له أي مصلحة خاصة، أو منفعة شخص
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.