Saudi Arabia has published a draft law covering partnerships between the government and private sector, a step towards launching billions of dollars worth of infrastructure projects and attracting foreign investment.
The draft law, which was published on The National Centre for Privatization website on Sunday, offers investors exemptions from labor laws, real state ownership restrictions and other regulations.
The center said it would accept public comment on the draft for three weeks, starting July 8, before promulgation of the law on an unspecified future date.
In April, the Kingdom announced plans to generate SAR 35 billion to SAR 40 billion ($9 to $11 billion) of non-oil state revenues from its privatization program by 2020. A part of that money would come from asset sales, while the rest would come from public-private partnerships (PPPs).
Saudi Arabia is expecting to commence PPPs initiatives in school facilities, water desalination plants, transport infrastructure and other projects.
The draft law mentions that state employees may need to be transferred out of projects and that certain companies may be exempted from meeting minimum Saudization requirements in their workforces.
Meanwhile, rules are likely to be relaxed to let foreigners own real estate, except for properties in Mecca and Medina. However, companies may lease real estate for limited periods within Mecca and Medina.
The draft also allows bidders for PPP contracts to appeal awards by the government - a move aimed to increase transparency and draw more bidders.
On Sunday, the Ministry of Energy, Industry and Mineral Resources said it had modified regulations to facilitate private investment in the mining industries.
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