Home Business Saudi Arabia. Adoption of the executive regulation of the new privatization system

Saudi Arabia. Adoption of the executive regulation of the new privatization system

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As part of Saudi Arabia’s efforts to implement privatization plans in government agencies and achieve the goals set for the transformation project, the Board of Directors of the National Privatization Center approved the implementing regulations for the system, which have been developed by exploiting practices. And local experiences in carrying out projects of this type.

The executive regulation of the privatization system aims to organize the work of privatization projects and to clarify the procedures and working mechanism in they contained.

The new regulation reveals the methods of transferring ownership of the assets, the mechanisms for their offer, implementation and procurement, the conditions and controls necessary for the purpose.

According to the decision of the council, the executive regulation will replace the project guide and the rules governing the work of the monitoring committees, their working groups and their advisors, and most of the components of the general regulatory framework for privatizations, which it includes the privatization system, the rules governing privatization and the organization of the National Center for Privatization.

The regulation aims to organize the work of privatization projects, clarify the procedures and the working mechanism in they, and include the detailed provisions necessary to implement the system, the detailed governance framework that regulates the projects and the tasks and responsibilities of the various parties involved in the projects.

The regulation specified the principles to be taken into account in the implementation of projects, which are justice, transparency, contract execution, planning and feasibility, and established controls for the studio of privatization projects and the drafting of the project document which forms the basis for the Government’s decision to approve it, in addition to the controls and obligations associated with the offer that ensure real competition and protect the public interest, integrity and justice in the Offer and in the award procedures and provisions that ensure impartiality for all participants and avoid conflicts of interest.
The regulation also highlighted, among its clauses, the governance framework for the contract management phase, the monitoring of project implementation and the commitment of the private individual to the provisions of the contract, in in particular that the duration of public-private partnership contracts can reach 30 years or more.

Riad

With the adoption of the regulation, a major possibility was added to the regulatory framework for privatization, as these capabilities have become a major supporter of increasing the number of projects, raising their quality and accelerating the pace of mechanisms. and procedures, and will also improve the reduction of risks and delays.

In addition, the regulation will stimulate investors to increase participation in the opportunities presented to play a greater role in economic development and to increase their participation in the domestic product in order to achieve the Kingdom’s Vision 2030 goals in making state assets available to the sector. private and the allocation of specific public services.

During the previous year the Saudi Council of Ministers had approved the rules governing privatization, the approval of the government came to complement the system of the recently approved privatization program. in a phase of organizing the projects of the program and its powers and the competent authorities to issue the necessary authorizations for the projects.

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