Article 6 of the Saudi Privatization Law
المادة 6 من نظام التخصيص
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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؛ وفقًا لما تحدده اللائحة التنفيذية.
2- تصدر الجهة المختصة الموافقة على مشاريع التخصيص بعد حصول الجهة التنفيذية على موافقة الوزارة، وذلك 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 6 explained in plain English
This article regulates the sequence of approvals in privatization projects:
- The study comes first: when the executing entity requests the approval of the Ministry of Finance or the competent authority for any of its tasks under the Law, it must carry out a comprehensive analysis and study of the subject of the request, as the Implementing Regulations set. A bare request is not enough.
- The Ministry of Finance's approval comes before the competent authority's: the competent authority issues its approval of privatization projects after the executing entity obtains the Ministry's approval, in accordance with the Law's provisions.
The practical meaning is that the Ministry of Finance has a prior oversight role: it considers the project's financial impact before the competent authority gives its final approval. This protects the public treasury from commitments that have not been studied.
The text does not set the content or duration of the study, but refers that to the regulations. This article is linked to Article 5 on privatization methods, and to Article 7, which requires some projects to be referred to the Center for a preliminary study.
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 6 of the Saudi Privatization Law
Is the Ministry of Finance's approval required for privatization projects?
Yes. The competent authority issues its approval of privatization projects after the executing entity obtains the Ministry's approval.
What is the executing entity required to do before requesting approval?
Carry out a comprehensive analysis and study of the subject of the request, as the Implementing Regulations set.
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 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
- Article 44
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.
يصدر مجلس إدارة المركز ما يأتي: 1- اللائحة التنفيذية. 2- نماذج المنافسة، ونماذج وثائق المنافسة، ونماذج العقود المتعلقة بمشاريع التخصيص. 3- نماذج البنود التعاقدي
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.