Privatization Law

Purpose and scope

• Governs privatisation and public-private partnership projects, aiming to rationalise public spending and raise service quality and economic efficiency (Article 3).

Key rules, rights and obligations

• Infrastructure or public-service projects above the set value, or with a contract of five years or more, are referred to the centre to study whether privatisation suits them before tender (Article 7).
• The executing body may cancel a tender before signing in the public interest, and bidders get no compensation unless the centre's board decides otherwise (Article 13).
• The private party must treat beneficiaries with full equality and may not refuse or restrict service except as the contract allows (Article 23).
• The contract may include delay penalties, a penalty clause or compensation for breach (Article 27).

Violations, penalties and common problems

• With approval, the executing body may end a partnership contract unilaterally in cases including a material breach by the private party not cured after written notice (Article 28).
• Staff of the executing body and its consultants may not have an interest in the project, for themselves or relatives, and must disclose any conflict and stand aside (Article 43).

Procedures and key deadlines

• A complaint about tendering or award goes to the competent committee within ten working days of the action, with a bank guarantee (Article 39).
• With approval, the executing body may amend the contract in writing or suspend the project in the public interest, as the contract allows (Article 21).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.