Article 44 of the Saudi Privatization Law
المادة 44 من نظام التخصيص
The Board of Directors of the National Center for Privatization issues the Implementing Regulations, tender templates and documents, contract templates, and templates of mandatory and guidance contract clauses for privatization projects.
Official text (Arabic)
This article has not been amended since the law was issued.
يصدر مجلس إدارة المركز ما يأتي:
1- اللائحة التنفيذية.
2- نماذج المنافسة، ونماذج وثائق المنافسة، ونماذج العقود المتعلقة بمشاريع التخصيص.
3- نماذج البنود التعاقدية الإلزامية والاسترشادية المتعلقة بمشاريع 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 44 explained in plain English
This article sets out what the Board of Directors of the National Center for Privatization issues, which is three kinds of documents:
- The Implementing Regulations of the Law, which contain the details that the Law refers to in many articles.
- Templates: tender templates, tender document templates, and contract templates relating to privatization projects.
- Templates of contract clauses, of two kinds:
- Mandatory: contracts must include them.
- Guidance: to be consulted for guidance.
The practical effect for an investor is significant: the Center's Board of Directors issues contract templates and contract clause templates, some of which are mandatory. It is therefore advisable to review these templates early.
The text does not state the content of these templates or which clauses are mandatory; that becomes clear from the templates themselves once issued. This article comes after Article 43 on conflicts of interest and before Article 45 on the Law's entry into force. Anyone preparing for privatization contract negotiations should consult a lawyer who specializes in commercial matters and partnership contracts.
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 44 of the Saudi Privatization Law
Who issues the Implementing Regulations of the Privatization Law?
The Board of Directors of the National Center for Privatization issues them.
Are there mandatory clauses in privatization contracts?
Yes. The Center's Board of Directors issues templates of mandatory and guidance contract clauses for privatization projects.
More articles on Authorities Responsible for Privatization Projects
- Article 2
The article leaves it to the regulatory rules issued by the Council of Ministers to identify the competent authority for approvals, the executing entity that studies, offers and awards projects and concludes contracts, and the related entities.
1- تحدد القواعد المنظمة -بحسب مشروع التخصيص- الجهة (الجهات) التي لها صلاحية إصدار الموافقات اللازمة لمشاريع التخصيص بما في ذلك الموافقة على طرح المشاريع، وترسيت
- Article 6
The executing entity must carry out a comprehensive analysis and study when requesting approval from the Ministry or the competent authority, and the competent authority issues its approval only after the Ministry of Finance approves.
1- يتعيّن على الجهة التنفيذية عند طلب موافقة الوزارة أو الجهة المختصة على أي من المهمات الموكولة إليها بموجب أحكام النظام؛ إجراء تحليل ودراسة شاملة لموضوع الطلب
- Article 7
A government infrastructure or public service project whose estimated value exceeds a limit set by the Council of Ministers, or whose contract lasts five years or more, is referred to the Center for a preliminary study within 60 working days.
1- في حال صدور موافقة من الجهة المعنية نظامًا على مشروع بنية تحتيّة أو خدمة عامة لجهة حكومية، وكانت القيمة المقدرة للمشروع تتجاوز الحد الذي يُعيّنه مجلس الوزراء
- Article 11
Where a license or permit needed for a privatization project cannot be issued or is delayed by the competent government entity, the Council of Economic and Development Affairs issues its direction to it on the basis of a report prepared by the executing entity.
دون الإخلال بأحكام العقد المتعلقة بتوزيع المخاطر بين أطراف العقد، عند تعذر إصدار رخصة، أو ترخيص، أو تصريح لازم لأي مشروع تخصيص، أو تأخر إصداره من قبل الجهة الحك
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.