As with PPPs, a dedicated legal framework for privatization is often needed to address any shortcomings in existing laws. Existing laws that might need to change include corporatization law, competition law, labor law, laws protecting foreign investors, and laws governing land ownership. A privatization law can also specify the acceptable methods of privatization and any limitations on potential bidders. Such a law would demonstrate government's commitment and build investor confidence, because laws tend to be more binding than policies.
In many cases, sector laws will be required to cover sector-specific privatization issues, especially those that encompass reform and restructuring efforts. When required, these sector laws should clearly allocate government roles within the sector and, if needed, create new institutions, such as an independent regulator. This is particularly useful in sectors within GCC states in which the same entity may play multiple roles that have conflicting interests, including shareholder, operational manager, policymaker, regulator, and customer.