Saudi Arabia adopts new governance for government entity transformations

The Saudi Arabian Council of Ministers has approved a new governance framework to regulate requests from government and public entities seeking transformation or privatization. A specialized committee, chaired by the Ministry of Finance and including the Ministry of Human Resources and Social Development and the Ministry of Economy and Planning, will oversee the process.

The framework requires requesting entities to provide clear justifications linked to their roles and national strategies, such as Saudi Vision 2030. Entities must submit comprehensive financial analyses covering three consecutive fiscal years, identifying funding sources and ensuring they do not exceed established financial ceilings.

Regarding human resources, the governance mandates a workforce plan coordinated with the Ministry of Human Resources and Social Development. This includes managing surplus staff through options such as transitioning to the private sector, early retirement, or termination of service. Additionally, data on unused competencies from redundant positions must be recorded in the Ministry of Human Resources database. The regulations apply to all new and existing transformation requests effective immediately.