Article 48 of the Saudi Water Law
المادة 48 من نظام المياه · الفصل العاشر: خدمات المياه
The article prohibits a licensee for a service provision activity from assigning its license or disposing of the licensed assets in any way before obtaining the Authority's written permission, without affecting the performance of the activity.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمرخَّص له بنشاط تقديم الخدمة -قبل الحصول على إذن مكتوب من الهيئة- التنازل عن رخصته، أو التصرف في الأصول المرخَّص لها، سواءً بالنقل، أو البيع، أو الرهن، أو أي تصرف آخر، وتحدد لوائح الهيئة الشروط الخاصة بذلك، على ألا يترتب على أي من هذه التصرفات إخلال بأداء النشاط المرخَّص به.
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 48 explained in plain English
This article protects the continuity of water services from being affected by the licensee's dealings in its license or assets. It provides that the licensee for a service provision activity may not, before obtaining written permission from the Authority, do either of the following:
- Assign its license.
- Dispose of the licensed assets, whether by transfer, sale, mortgage or any other disposition.
Note that the permission must be in writing and must come before the disposition. The phrase "any other disposition" also means the list is not limited to transfer, sale and mortgage.
The article adds two things:
- The Authority's regulations determine the conditions for this.
- These dispositions must not result in any disruption to the performance of the licensed activity.
The article connects with Article 47, which makes issuing licenses for service provision activities a matter for the Authority, and with Article 49, which requires the Authority's approval before merging with other persons or acquiring most of their shares or assets.
In practice, a person negotiating to buy the assets of a licensed service provider, or wishing to finance them through a mortgage, should take this condition into account in the transaction arrangements. Anyone facing a transaction of this kind is well advised to consult a lawyer who specializes in water regulations, commercial matters and companies.
Practical example
A company licensed to distribute water in the Eastern Province wants to mortgage some of its licensed assets to a bank in return for financing. Under this article it must first obtain written permission from the Authority, meet the conditions the Authority's regulations set, and ensure the mortgage does not disrupt the performance of the distribution activity.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 48 of the Saudi Water Law
May a water company sell its licensed assets?
Not before obtaining written permission from the Authority, under Article 48, and the rule applies to transfer, mortgage and any other disposition.
Can a water service license be assigned?
It may not be assigned except after written permission from the Authority and in accordance with the conditions its regulations set.
What is the basic condition for any disposition of the license or assets?
That the disposition does not disrupt the performance of the licensed activity.
More articles on Water Service Licenses and Infrastructure
- Article 17
The article bars the relevant bodies from issuing licenses or approvals for any facility that may obstruct the use of surface water except with the Ministry's prior approval.
على الجهات المعنية عدم إصدار رخص أو موافقات على إقامة أيّ منشأة قد تعوق استخدام المياه السطحية إلا بموافقة مسبقة من الوزارة.
- Article 47
The article makes issuing, renewing and amending licenses, exemptions and permits for service provision activities the Authority's responsibility, and bans carrying out any of these activities without a license except those exempted by the Authority's regulations.
1- تتولى الهيئة إصدار الرخص، والإعفاءات، والتصاريح اللازمة لمزاولة أي نشاط من أنشطة تقديم الخدمة، أو الإعداد لمزاولته، وتجديدها، وتعديلها. 2- فيما عدا الأنشطة ا
- Article 49
Article 49 requires a service-activity licensee to get the Authority's approval before merging with others or acquiring most of their shares or assets, and to notify the Authority of any preliminary agreement.
يجب على المرخَّص له بنشاط تقديم الخدمة الحصول على موافقة الهيئة قبل الاندماج مع أشخاص آخرين، أو امتلاك معظم حصصهم، أو موجوداتهم، ويجب عليه إشعار الهيئة بأي اتفا
- Article 50
Article 50 requires the Authority, in coordination with the Ministry, to make the necessary arrangements to ensure service continues if a service-activity licensee is unable to carry out its activity for any reason.
إذا تعذر على المرخَّص له بنشاط تقديم الخدمة القيام بنشاطه المرخَّص له به لأي سبب، فعلى الهيئة -وبالتنسيق مع الوزارة- اتخاذ الترتيبات اللازمة؛ لضمان استمرار تقدي
- Article 51
Article 51 gives the Authority's inspectors the right to enter sites and facilities licensed by the Authority to check compliance with the Law, and allows the Authority to coordinate with the competent bodies if they are prevented or obstructed.
1- لمفتشي الهيئة الحق في دخول المواقع والمنشآت المرخَّص لها من قبل الهيئة؛ للتأكد من مدى الالتزام بتطبيق أحكام النظام. 2- في حال منع أو إعاقة مفتشي الهيئة عن تأ
- Article 52
Article 52 tasks the Ministry or its delegate with building water harvesting infrastructure and networks outside the jurisdiction of the secretariats, municipalities and special zones when there is no licensee, and treats public water infrastructure as state property.
1- تقوم الوزارة أو من تفوضه في حال عدم وجود مرخَّص له في المناطق الواقعة خارج نطاق اختصاص الأمانات والبلديات والمناطق الخاصة؛ بإنشاء بنى أساسية، وشبكات، وأنظمة
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.