Article 9 of the Saudi Privatization Law
المادة 9 من نظام التخصيص
On the recommendation of the Center's board of directors, the Council of Economic and Development Affairs may decide to treat or not treat any infrastructure or public service project as a privatization project.
Official text (Arabic)
This article has not been amended since the law was issued.
للمجلس بناءً على توصية من مجلس إدارة المركز النظر في أي مشروع مرتبط بالبنية التحتية، أو الخدمات العامة؛ ليقرر اعتباره (أو عدم اعتباره) مشروعاً من مشاريع الشراكة بين القطاعين العام والخاص، أو مشاريع نقل ملكية الأصول، الخاضعة لأحكام النظام، سواء انطبق عليه تعريف الشراكة بين القطاعين العام والخاص أو تعريف نقل ملكية الأصول؛ أو لم ينطبق.
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 9 explained in plain English
The rule is that a project counts as a public-private partnership or an asset ownership transfer if it meets the definition in Article 1. But this article adds a discretionary power:
- Who decides: the Council of Economic and Development Affairs.
- On the basis of: a recommendation from the board of directors of the National Center for Privatization.
- What it decides: to treat any infrastructure or public service project, or not to treat it, as a partnership or asset ownership transfer project subject to the Law.
- The scope: whether or not the definition applies to it.
The practical meaning is that the definition applying is not the only criterion. A project that does not have all the elements of a partnership, for example one with a term of less than five years, may be made subject to the Law, and a project to which the elements apply may be excluded. This gives flexibility to deal with special projects.
An investor wondering whether a particular project is subject to the Law should therefore check whether a decision of the Council exists on it, in addition to considering the definition. This article follows Article 8 on the Ministry of Finance's tasks, and precedes Article 10 on financial support not provided for in the contract.
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 9 of the Saudi Privatization Law
Can a project be made subject to the Privatization Law even if the definition does not apply to it?
Yes. The Council of Economic and Development Affairs, on the recommendation of the Center's board of directors, may decide to treat it as a privatization project whether or not the definition applies.
Can a project be excluded from the Privatization Law?
Yes. The Council may decide not to treat the project as a privatization project even if the definition applies to it.
More articles on Scope and Aims of the Privatization Law
- Article 1
The article defines the terms of the Privatization Law, including privatization, public-private partnership, asset ownership transfer, private party, subsidiary contract and unsolicited offer.
يقصد بالألفاظ والعبارات الآتية -أينما وردت في هذا النظام- المعاني الموضّحة أمام كل منها ما لم يقتض السياق غير ذلك: النظام: نظام التخصيص. المجلس: مجلس الشؤون الا
- Article 3
The article sets the government's aims in privatization projects, including rationalizing spending, increasing revenues, raising service quality, encouraging the private sector, widening citizens' participation and creating jobs.
تسعى الحكومة من خلال مشاريع التخصيص إلى تحقيق الأهداف الآتية: 1- المساعدة في تحقيق الأهداف الاستراتيجية للجهات الحكومية، وترشيد الإنفاق العام، وزيادة إيرادات ال
- Article 4
The Privatization Law applies to contracts of ministries, government bodies and government companies more than 50% owned that are set up to carry out a privatization project. It does not apply to earlier contracts unless amended, extended or renewed after it takes effect.
تسري أحكام النظام على جميع العقود التي تجريها الوزارات والأجهزة الحكومية الأخرى، والشركات التي تؤسسها الحكومة، أو تتملك فيها وتصل نسبة ملكيتها فيها -بشكل مباشر
- Article 40
The Implementing Regulations set the rules for implementing the Privatization Law, including the project document, project priorities, selecting consultants, monitoring contracts, the effect of emergencies, and criteria for treating a project as privatization.
1- تحدد اللائحة التنفيذية الأحكام اللازمة لتنفيذ النظام بما في ذلك ما يأتي: أ- الأحكام المتعلقة بوثيقة مشروع التخصيص، وآلية التواصل بالقطاع الخاص. ب- الأسس اللا
- Article 45
The Privatization Law repeals any provisions that conflict with it and takes effect 120 days after its publication in the Official Gazette.
يلغي النظام كل ما يتعارض معه من أحكام، ويُعمل به بعد مضي (مائة وعشرين) يومًا من تاريخ نشره في الجريدة الرسمية.
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.