Article 43 of the Saudi Privatization Law
المادة 43 من نظام التخصيص
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 شخصية مباشرة أو غير مباشرة، مرتبطة بمشروع التخصيص، أو لزوجه، أو أحد أصوله، أو فروعه.
2- في حال توافر أي حالة من حالات تعارض المصالح، يجب على الشخص المعني الإفصاح عنها فورًا، والامتناع عن المشاركة في أي إجراء، أو التصويت بشأن أي قرار مرتبط بمشروع التخصيص؛ لحين زوال سبب تعارض المصالح.
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 43 explained in plain English
This article protects the integrity of decisions in privatization projects through conflict-of-interest rules:
First: the prohibition.
- Who is covered: any member of the contracting authority's staff, any of its consultants, or any other public employee who takes part in tasks connected with the privatization project.
- What is prohibited: having any private interest or personal benefit, direct or indirect, connected with the project.
- It extends to: their spouse, any of their ascendants (such as father and mother), or descendants (such as children).
Second: disclosure and abstention. If any conflict-of-interest situation arises, the person concerned must:
- Disclose it immediately.
- Abstain from taking part in any procedure or voting on any decision connected with the project.
- This continues until the cause of the conflict ends.
In practice: an employee of the contracting authority whose son holds a share in a competing company must disclose immediately and keep away from any decision on the project. The text does not state a penalty for violation.
It follows Article 42 on confidentiality, and the two articles together safeguard the integrity of tendering and award. Anyone facing a suspected conflict of interest should consult a lawyer who specializes in administrative or criminal matters.
Practical example
An engineer was appointed to a team evaluating bids for a privatization project, then discovered that his wife's company is among the bidders. He must disclose immediately and abstain from taking part in any evaluation or vote relating to the project until the conflict ends.
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 43 of the Saudi Privatization Law
Can a contracting authority employee take part in a project in which a relative has an interest?
No. They, their spouse, ascendants or descendants may not have an interest connected with the project, and they must disclose it and abstain from taking part.
When must a conflict of interest be disclosed?
It must be disclosed immediately when it arises.
Does the prohibition cover consultants?
Yes. It covers any consultant of the contracting authority and any other public employee who takes part in tasks connected with the project.
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 42
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.
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
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.