By Innovation-sa on July 12, 2018 in News
Saudi Arabia has issued a draft law on partnerships between the government and private sector as the kingdom prepares to unlock infrastructure projects worth billions and attract new foreign investments.
The 50-page draft offers investors exemptions from labor laws, real estate ownership restrictions and other regulations. The National Center for Privatization and Public-Private Partnerships has invited the public to submit comments on the draft law by 29 July after which the law will be declared on an unspecified future date.
Saudi Arabia has plans to increase its non-oil revenues to around 40 billion riyals by 2020. The money is expected to come from asset sales as well as public-private partnerships (PPPs) in which private companies invest in infrastructure and are paid to operate it for a period, before finally transferring it to the government.
Meanwhile, the draft law agrees that state employees may need to be transferred out of some projects and that some companies may be exempted from meeting the minimum requirements for the ratio of Saudi citizens in their work forces. The draft also allows bidders for PPP contracts to appeal awards by the government,in order to attract bidders and improve transparency of public-private partnerships.
Saudi Gazette – 9 July 2018