Letter from the Chairman of the Board of Directors of the National Center for Privatization

The Kingdom of Saudi Arabia has marked its Vision 2030 by the title: "Our Vision for the Kingdom's Future". The Vision is based on three pillars: a vibrant society, a thriving economy, and an ambitious nation. This Vision acknowledges that the Kingdom must create new tools in order to open investment avenues for our most promising economic sectors; and by doing so, the Kingdom can generate a more diverse economy and new employment opportunities for its people. The Vision also stresses that economic development and improving the quality of services requires the privatization of certain government services. Privatization will also lead to an improved business environment thereby helping to attract new talent and additional global investment to the Kingdom. Each of these initiatives will also serve to enhance the unique strategic location of the Kingdom as an interface between three continents.

Recognizing how important the privatization projects are to achieving the Vision's objectives; both social and economic, it is incumbent that we expand the user base of the privatization model by applying the rules and procedures that would help relevant stakeholders (both within the public sector and the private sector) better understand how to engage and participate in these projects. The National Center for Privatization and PPP had been assigned the mandate of developing a comprehensive governance model for the Supervisory Committee's works/functions and procedures to execute privatization projects pursuant to Council of Ministers Resolution No. (665) dated 8/11/1438H approving the Rules of Conduct of the Supervisory Committees for the Sectors Targeted for Privatization and its Tasks, and the Council of Ministers Resolution No. (355) dated 7/6/1438H, approving the organization of the National Center for Privatization and PPP.

The National Center for Privatization and PPP has started this mission by developing "The Rules Governing the Work of the Supervisory Committees, their Teams and Advisors" and that directive was adopted by the Board of Directors by its resolution No. (3/5/2018) dated 03/08/1439H corresponding 19/04/2018G.

Complementing the efforts to develop a governance model, the National Center for Privatization and PPP has prepared this Manual, which has been adopted and approved by the Board of Directors pursuant its resolution No. (2/5/2018) dated 03/08/1439H corresponding 19/04/2018G.

This Manual includes technical and specialized reference materials that privatization participants should utilize on all activities and work associated with the Privatization Program. The manual is specifically intended to provide necessary information to the Supervisory Committees, their work teams, and consultants on the most appropriate way for a team to define, qualify, evaluate and procedurally manage a proposed privatization project.

The Manual is designed to regulate all phases of a privatization project as detailed below:

1.  Defining whether privatization is the most appropriate option for achieving the objectives of the proposed project.

2.  Developing the proposed project for privatization implementation.

3.  Approval of privatization projects.

Due to its importance, the National Center for Privatization and PPP will keep this Manual under continuous review and make updates as needed in order to ensure it tracks with all international developments in the area of privatization and governance while also addressing the specific challenges and obstacles that are unique to the Kingdom's initiative.

The National Center for Privatization and PPP is fully prepared to provide technical support and advice to stakeholders in all matters related to this Manual and its application. We stand prepared to answer and address any queries, comments or suggestions related to this Manual and its applicability to your efforts.

The National Center for Privatization and PPP can be contacted through any of the following means:

  Visit the headquarters of the National Center for Privatization and PPP located in Riyadh, Tamkeen Tower, Floor 40.

  The National Center for Privatization and PPP E-mail: Law.Regulations(S).ncp.gov.sa