A look at decision on allowing govt entities to use income sharing to secure commodities, services

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The Saudi official gazette Umm Al Qura published yesterday, Nov. 26, the details of the decision on allowing the government entities to use the income-sharing method to secure commodities and services, which was approved by the Council of Ministers earlier this month.

The decision grants the Minister of Finance the authority to approve the income-sharing rules, while keeping the signed contracts until their expiry. In addition, the Minister of Finance is allowed submit a request to complete the necessary procedures to cancel Council of Ministers' Resolution No. 110 referred to after the expiry of the contracts signed accordingly.

The decision also stipulates granting the Minister of Finance the power to make an exception from the provisions of the Tenders and Procurement Law, which cannot be implemented when applying the income-sharing rules, for a period not exceeding three years.