Saudi Arabia: Flag Law Amendments Approved

Saudi Gazette, 1 February 2022: Saudi Arabia’s Shoura Council has approved proposed amendments to the national flag, emblem and the national anthem law.

However, their contents will not change.

The proposed changes in the rules governing the green flag, which is emblazoned with a sword and inscribed with Islam’s creed, aim to define the proper uses of the state emblem more clearly.

They also aim to improve awareness about the importance of the flag and anthem and protect the flag from infringements or neglect.

The amendments also specify the penalties which will be imposed on violators.

In addition, they introduce a legislative provision for the protection of the national anthem.

There is a provision to determine the body authorised by law to control violations as well as the competent authority to issue rules over them too and the method of submitting grievances or appeal against verdicts.

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Saudi Arabia: Details of Implementing Regulations to Privatisation Law Announced

Saudi Gazette, 24 January 2022: Well-placed sources have given details of the Implementing Regulations to the Privatisation Law to local media.

Among other provisions, the minimum value of Public and Private Partnership or PPP projects is 200 million Riyals.

The minimum value for the PPP project will be calculated by the executive authority on the basis of the total expected nominal value during the project once the capital and operating expenditures have been estimated as well as the potential financial obligations on the Treasury and the financial revenues expected to be obtained by the Government.

The Regulations are aimed at organising the work of privatisation projects and clarifying the procedures and mechanism of the relevant workflows.

They include detailed provisions necessary to implement the Privatisation Law and the detailed governance framework regulating projects and tasks and responsibilities of various parties involved in privatisation projects as well.

In addition, they clarify the Law and list the principles of privatisation and project plan implementation priorities as well as public-private partnership methods.

The National Centre for Privatisation will be responsible for implementing privatisation initiatives and opportunities in 16 sectors. The aim is to provide the best services in line with the objectives of the Kingdom’s Vision 2030.

The executive authority can include more than one project of a similar nature to achieve the minimum stipulated project value in the Law. If the minimum is not achieved and the relevant body considers it is better to continue offering the project related to the infrastructure or public service, the rules and regulations will then apply to it.

Under the regulations, 10 working days will be given to complete the procedures from the date of announcing the list of persons who expressed their desire to compete in the privatisation project. The regulations are aimed at encouraging investors to increase their participation in the national economy.

The regulations go on to define the principles which should be observed when implementing projects. These are fairness, transparency, contract enforcement, planning and feasibility. There are also special controls for studying privatisation projects and preparing the project document in the relevant form to enable the Government to consider it.

There are controls and requirements associated with the offering as well, which ensure real competition and protect the public interest and integrity and fairness in the procedures for offering and awarding projects. There should be impartiality for all participants and no conflicts of interests.

There are provisions on procedures for transferring the ownership of assets, the mechanisms for offering, implementing and contracting them and the conditions and controls necessary to achieve this. Finally, there are provisions on governance. They cover the contract management phase, monitoring of project implementation and commitments by the private sector party in the contract. Public-private partnership contracts will last for 30 years or more.

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Saudi Arabia: Requirements for Selling Vacant Lands Off Plan Amended

Al Riyadh, 18 January 2022: The Programme for Selling or Renting Land Off Plan or Wafi has announced it has amended the requirements for the licences related to selling vacant land off plan.

The amendments limit the requirements for signing, i.e., adding notes to the margin of the land deed instead of offering a financial guarantee or a ratified cheque.

The General Secretary of the Committee for selling or renting off plan said the decision limits the requirement to sign the margin of the deeds as one of the guarantees offered by the developer instead of the financial guarantee of 20% of the cost of the project to speed up the process of developing the land.

This aims to make the procedures to obtain a licence more easily and encourage the owners of these lands to develop their lands as part of the continuous efforts to support the real estate demand and offer residential solutions in a sustainable way by introducing and amending supporting legislation.

The aim is also to increase the level of property ownership by Saudi families to 70% by 2030 to achieve the objectives of the housing programme.

For full story, click here.

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Saudi Arabia: Expectations for Saudi Fintech Sector

Arab News, 9 January 2022: Saudi Arabia saw a significant jump in venture capital investments in the financial technology sector, with 16 deals in the first eight months of 2021 totaling $157.2 million.

This compared with seven deals worth $7.8 million in 2020. 2021 also saw backing spread across a range of early-stage projects, with 46% at series A and B stages, 38% at the seed stage, and 15% at pre-see levels (where funding often comes from the founders, their family and supporters).

The payments sector remains the most attractive fintech area in Saudi, so far accounting for around 93% of total venture capital investments.

However, the median deal size in Saudi Arabia is $2.7 million compared to a global median deal size of $7.3 million.

The launch of Open Banking in Saudi Arabia in 2022, which allows firms to share consumer current account data once permission has been given, is also expected to speed up the pace of fintech development.

Experts expect this move will provide existing fintech investors with more opportunities, and will attract funds to the sector.

The Financial Sector Development Programme, launched in 2017 should also assist.

The plan includes developing the digital economy, and allowing financial intermediaries to support private sector growth by opening up the financial services industry to new players. It is also encouraging building of an advanced capital market in the Kingdom.

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Saudi Arabia: Anti-bribery Law Amended

Saudi Gazette, 7 December 2021: The Saudi Arabian authorities have approved amendments to the Kingdom’s Anti-bribery Law.

The first amendment sees the phrase every public employee replaced with every person.

Article 8(7) has been amended to read ‘Foreign public officials and employees of international institutions and organisations in connection with the conduct of international business’.

Finally, Article 15 has been amended to read ‘Judgment shall be issued in the case of a person, who has been proven guilty of the crime of bribery, to confiscate the money, advantage or benefit that involved in the crime whenever possible, or confiscate its value, as the case may be, and confiscate any proceeds from the money or advantage or benefit’.

The amendments were approved following a letter from the Oversight and Anti-Corruption Authority or Nazaha on proposed amendments to the Law. Also reported in Okaz on 7 December 2021. For full story, click here.

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Saudi Arabia: Residency Permits Now Being Issued and Renewed Quarterly

Saudi Gazette, 23 November 2021: The General Directorate of Passports or Jawazat has announced residency permits can now be issued and renewed quarterly.

The new service is being executed together with the Human Resources and Social Development Ministry and the Saudi Authority for Data and Artificial Intelligence.

It has been launched to implement a new Cabinet Decision which was issued to this effect.

Domestic workers and similar workers are exempt.

The residency permit will be renewed once the expatriate fee has been paid.

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Saudi Arabia: Landmark Insurance Product for Self-driving Vehicles Launched

Al-Eqtisadiya, 14 November 2021: Saudi Arabia’s Central Bank has announced it has launched a landmark insurance product for self-driving vehicles.

It is the first insurance product to cover self-driving vehicles and the associated risks.

It has been launched as part of efforts to support the insurance sector in developing and introducing new and innovative insurance products to achieve the objectives of the Financial Sector Development Programme.

It covers self-driving vehicles which can drive themselves from a starting point to a predetermined destination, using various technologies and sensors, including adaptive cruise control, active steering, anti-lock braking systems and GPS technology as well as laser technology, in places qualified and licensed by official authorities to use these types of vehicles.

For full story, click here.

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Saudi Arabia: Non-Saudis Can Invest in Real Estate Funds in Mecca and Medina

Arab News, 8 November 2021: Saudi Arabia’s Capital Market Authority has announced it will allow non-Saudis to invest in real estate funds in Mecca and Medina.

Financial market institutions can accept subscriptions of non-Saudis in these funds.

They invest in assets in these locations.

They can own real estate for their own residential purposes, once they have obtained a license from the Interior Ministry. Their foreign representatives will be able to own their official headquarters after obtaining a license from the Foreign Affairs Minister.

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Saudi Arabia: Fines for Building Without License Announced

Al Madina, 2 November 2021: Saudi Arabia’s Municipal and Rural Affairs and Housing Ministry has set the controls for dealing with buildings built without a legal license.

The aim is to limit violations.

The Ministry has also set out the mechanism for municipalities and secretariats to deal with these violations. These include removing the building completely if it contradicts with organisation planning. The violator must pay the costs of removal as well.

If the building is in line with the plans and does not cause harm to neighbouring buildings then the violator must pay a fine equivalent to 25% of the total value of the building plus the license fees. However, if the building does cause harm to others, it must be removed. For full story, click here.

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Saudi Arabia: Correction Period for Building Code Violation Announced

Okaz, 26 October 2021: Saudi Arabia’s Commerce Minister has announced an amendment to the regulation for classifying violations of the Saudi Building Code has been approved.

The Code started to be implemented recently.

Violators will have 90 days to undo the violation. After this they will be fined up to 10,000 Riyals among other penalties.

Violations include issuing an occupancy certificate for a building despite the presence of serious construction violations. The supervising office will be fined 7,500 Riyals in this case. Another violation includes assigning the supervising engineering office or the contractor executing their tasks, or part of them, to an individual who is not qualified in the relevant specialist field.

The supervising office will be fined 2,000 Riyals and the contractor will be fined 4,000 Riyals.

For full story see https://www.okaz.com.sa/news/local/2086247.

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