Saudi sets minimum project value of public assets to be privatized at $13.3mn

By Arya M Nair, Intern Reporter
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Saudi Arabia
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The minimum project value of public assets that are meant for privatization has been set at $13.3 million, according to the executive regulations of the Privatization Law.

The law also requires that a public-private partnership (PPP) project must have a minimum value of $53.2 million. It further states that all significant positions created as a result of the privatization of government projects will be reserved for Saudis.

The executive authority in charge of the assets will calculate the estimated minimum value of the privatization project and the minimum value of the PPP project will be estimated based on the total expected nominal value during the period of the project, after calculating capital and operating expenditures, potential financial obligations on the state’s public treasury, in addition to the financial revenues expected to be obtained by the government.

The rules of the Privatization Law and its executive regulations will apply to the privatization of projects offered or contracted by government-owned or controlled companies that own more than 50 percent capital of companies created for the purpose of privatization.

The proposed project shall be one of the requirements of the goals of the Kingdom’s Vision 2030 and contribute to achieving them. Saudis with a rank of at least 14 or its equivalent will be awarded senior positions on the Steering Committee.

Similarly, members of the working team must be qualified Saudi nationals. Those Saudis who are holding leadership positions of the working teams shall have five years of experience while other members are required to have at least three years of experience with fluency in Arabic and English.

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