Riyadh: Fairness, transparency, and feasibility will now all be taken into consideration before private public partnerships are given the green light in Saudi Arabia after a law change was signed off.
The National Center for Privatization and PPP have approved a new set of rules which govern how such agreements are reached.
The Private Sector Participation Law Implementing Regulations will also require there to be real competition in the tendering process and make sure the public interest is protected.
The new laws also provide provisions that ensure all participants are dealt with fairly and any conflict of interest is avoided.
The change has been made in a bid to encourage investors to bid for contracts and therefore increase private sector contribution to Saudi Arabia’s gross domestic product.
It is also a key aim of Saudi Vision 2030 to unlock state-owned assets to the private sector and privatize selected government services.
The new rules were first published in the official newspaper Umm Al-Qura.