Saudi Arabia: Data and Artificial Intelligence Authority Signs Cooperation Agreement with Red Sea Authority

Arab News, 12 February 2024: Saudi Arabia’s Data and Artificial Intelligence Authority has signed a cooperation agreement with the Red Sea Authority to promote integration across government bodies and provide a safe digital environment.

Under the agreement, the Data and Artificial Intelligence Authority will provide government cloud services to the Red Sea Authority to support infrastructure, facilitate digital transformation and ensure compliance with cybersecurity standards to maintain a secure digital environment.

The two bodies will also share knowledge and technical consultancy in smart city technologies.

The agreement was signed for the Data and Artificial Intelligence Authority by the Assistant Director of its National Information Centre for Cloud Computing, Nawaf Al-Sahan and for the Red Sea Authority by its Vice President for Digital Transformation, Khalid Al-Thonyan.

It was signed during the Global Smart City Forum in Riyadh.

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Saudi Arabia: New Privatisation Project Rules Announced

Arabian Business, 4 February 2024: Saudi Arabia’s National Centre for Privatisation & PPP has published new guidelines for privatisation projects in the Kingdom.

The new guidelines are contained in the Implementing Regulations to the country’s Privatisation Law (Saudi Arabia Administrative Decision No. 1/4/2023/1445).

The Privatisation Law is contained in Saudi Arabia Cabinet Decision No. 114/1443.

They have done so following the approval of amendments late last year.

The new rules have been issued to provide businesses with more clarity.

Among the amendments, new minimum value thresholds are specified for different project types.

The minimum for public-private partnership schemes is 200 million Riyals.

The minimum for deals involving the transfer of asset ownership is 50 million Riyals.

This minimum has been based on the estimated value determined by the executive entity for the target assets.

Projects below these thresholds can still go ahead if they are approved by relevant authorities.

If the minimum threshold is not met but the relevant authority infrastructure or public service project has to go ahead, the regulations and rules related to that project will apply.

In addition, the amendments provide clearer criteria for determining if a company has been set up specifically for privatisation.

Among other considerations, a company will be deemed to have been set up for privatisation if the establishment or ownership of the company by the government is for the purpose of offering a project related to infrastructure or public services through privatisation.

The amendments have taken international practices and local experiences into account. They will replace the previous guidelines and specify the principles that must be taken into account in implementing projects. These are fairness, transparency, contract enforcement, planning and feasibility.

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Saudi Arabia: New Whistleblowing Strategy Announced by General Authority of Endowments

Arab News, 5 February 2024: Saudi Arabia’s General Authority of Endowments has announced a new whistleblowing strategy.

Under the strategy, whistleblowers who report unauthorised endowments with a value of more than nine million Riyals will be rewarded with a cut of any funds seized.

The Authority also approved new legislation to protect whistleblower rights.

They have done so to encourage the public to report unauthorised endowments.

Rewards for tipoffs that lead to a seizure will be capped at 5% of the total confiscated funds or one million Riyals.

Reports must meet specific criteria, including being submitted online. The endowment must also have no supervisor and appropriate documentation must be provided.

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Saudi Arabia: Investment Ministry Launches Inventory of Foreign Direct Investments of Private Sector

Saudi Gazette, 29 January 2024: Saudi Arabia’s Investment Ministry has announced it has launched an inventory of foreign direct investments of the private sector.

It has been launched as part of efforts to provide services and incentives to support Saudi investors and companies in their efforts to expand globally especially in concluding bilateral investment agreements.

The Investment Minister said the Ministry was doing so in line with its regulatory remit and roles and responsibilities.

The Ministry has also prepared a questionnaire to record private sector companies’ foreign direct investments. Its questions include the name of the company, the year investment started, the name of the country in which the investment is made, the city in which the investment is made, the name of the sector, the value of the investment in US Dollars, the percentage of partnership or ownership and notes about foreign investment.

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Saudi Arabia: Bonded Zone Rules Issued

Arabian Business, 27 January 2024: Saudi Arabia’s Zakat, Tax and Customs Authority has announced it has issued Bonded Zone Rules.

The rules aim to outline the statutory provisions for licensing of bonded zones and for practicing activities in these zones.

The rules specify the obligations of operators and Authority control and supervisory functions relating to the bonded zones.

In addition, they clarify the procedures for licensing activities in bonded zones and the conditions for applying for licences.

They clarify the requirements, specifications and obligations and the provisions related to the obligations of operators and the Authority’s powers in this area too.

Bonded zones are a special customs area. Importers, exporters and logistics companies in these areas can store goods and carry out logistic activities and operations with customs duties and taxes suspended until they are entered into the local market, sold or re-exported.

This gives these companies increased liquidity and management flexibility.

It also enables an environment that supports movement of goods to be created.

In addition, it provides increased flexibility of clearance, storage and re-exporting to different destinations.

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Saudi Arabia: First Administrative Enforcement Court to be Established

Saudi Gazette, 21 January 2024: The first administrative enforcement court is going to be established in Riyadh.

It will have jurisdiction to enforce court decisions issued.

This will apply even where the decision is issued against ministries and government agencies.

The enforcement of administrative rulings will be carried out by submitting a request for enforcement in a statement of claim deposited in the court.

This will be referred to the relevant department to execute.

The department will then notify the party against whom enforcement is requested with a period of five days for urgent judgments and 30 days for other judgments.

Under the Implementing Regulations to the Enforcement Law before the Courts under the Board of Grievances, convicted individuals, including state agencies and companies partially owned by the state should take the initiative to implement the final rulings subject to expedited enforcement.

In terms of enforcement against administrative agencies, such as ministries and government agencies, the Administrative Enforcement Courts will issue a warning to the administrative authority for enforcement within a specific period.

The department may inform the Oversight and Anti-Corruption Authority or Nazaha of details including in its disciplinary jurisdiction.

The Administrative Enforcement Court may order the imposition of a fine amounting to 10,000 Riyals on the individual against whom the enforcement rule is carried out.

An employee in the public sector will be jailed for up to seven years and fined up to 700,000 Riyals if they exploit their position to prevent enforcement of the ruling.

The employee will also be jailed for five years and fined up to 500,000 Riyals if they deliberately refrain from executing the required document, partially or completely, with the intention of obstruction, eight days after they were notified of the warning or the receipt of the enforcement procedures.

The implementation must be within their jurisdiction.

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Saudi Arabia: Penalties for Violating Security Surveillance Cameras Law Clarified

Saudi Gazette, 22 January 2024: Saudi Arabia’s Interior Ministry has clarified the penalties which will be imposed on those who violate the Security Surveillance Cameras Law.

Offenders will be fined 20,000 Riyals if they transmit or publish recordings in violation of the Law or damage or sabotage security surveillance camera system devices or recordings.

They will be fined 10,000 Riyals if they install security surveillance cameras in places where their installation is banned.

They will be fined 5,000 Riyals if they fail to keep recordings according to the period stipulated in the terms and conditions documents.

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Saudi Arabia: Dress Code Regulations Introduced for Health Ministry Medical Staff

Saudi Gazette, 16 January 2024: Saudi Arabia’s Health Ministry has announced it has introduced new dress code regulations for its medical staff. Under the regulations, employees must be well dressed. They must appear decent and be well-suited to public etiquette.

They should avoid wearing pyjamas and men should avoid wearing shorts. Inappropriate clothes with offensive connotations or drawings should not also be worn.

Strange hairstyles should be avoided as well and personal hygiene standards should be maintained.

Women should wear opaque head coverings and not wear tight, open, or short clothes.

They should also not wear chains or slogans or excessive makeup, manicures, nails, and perfumes.

Any coats they wear should be wide and come down to their knee.

Official work clothes should not be worn in public places during breaks or outside working hours.

In addition, clothing must be modest and non-transparent and must be worn during work hours.

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