Statute of the Saudi Organization for Industrial Estates and Technology Zones

Article 1

Previous Amendments

The following words and phrases shall have the meanings indicated next to each of them unless the context requires otherwise:
The Authority:
 Saudi Authority for Industrial Cities and Technology Zones.
The Council: Board of Directors of the Authority.
The Minister: Minister of Energy, Industry, and Mineral Resources.
The Director General: Director General of the Authority.
The Designated Industrial City: The existing industrial city, or the government land approved by the Council of Ministers as an industrial city or technology zone, or the land designated for industrial use owned by the private or public sector that is approved by the Council as an industrial city or technology zone.
The Developer: The natural or legal person that is contracted with the Authority to develop a designated industrial city.
The Operator: The natural or legal person that is contracted with the Authority to manage, operate, and maintain a designated industrial city.
Development or Operation Contract: A contract between the Authority and a Developer, or between the Authority and an Operator, for the Developer to develop a designated industrial city established on government land and for the Operator to manage, operate, and maintain a designated industrial city established on government land.

The Investor: A natural or legal person that is linked to the Authority by a contract or approval for investment in a designated industrial city.

The License: The document issued by the Authority to the Developer, Operator, or Investor to conduct an activity or provide a service within a designated industrial city.
The Implementing Regulation: The regulation issued to implement the provisions of this organization.

Article 2

A public authority is established under this regulation, called the "Saudi Authority for Industrial Cities and Technology Zones," which enjoys independent legal personality and is affiliated with the Minister. Its main headquarters is located in the city of Riyadh, and the council may establish branches in other cities within the Kingdom.

Article 3

Previous Amendments

Article 4

Previous Amendments

Article 5

The Council is the supreme authority over the affairs of the Authority, managing its matters and making all necessary decisions to achieve its objectives within the provisions of this Statute, and in particular has the following:
1- Determining the general policies of the Authority.
2- Approving the Authority's budget draft, its final account, the auditor's report, and the annual report in preparation for submitting them according to the Law.
3- Approving the plans, programs, and proposals necessary for establishing, developing, managing, operating, and maintaining the designated industrial cities.
4- Taking the necessary measures to encourage the private sector to establish, develop, manage, operate, and maintain the designated industrial cities.
5- Approving privately owned lands as designated industrial cities.
6- Issuing rules, specifications, performance standards, and procedures related to the establishment, development, management, operation, and maintenance of the designated industrial cities.
7- Concluding agreements, contracts, or licenses necessary to facilitate the establishment, development, management, operation, and maintenance of the designated industrial cities.
8- Setting the foundations, rules, and standards that enable the Authority to sell lands in the designated industrial cities to investors after the approval of the Council of Ministers.
9- Determining and reviewing the financial consideration charged by the Authority for the services it provides.
10- Approving the internal, financial, and administrative regulations and the organizational structure of the Authority to ensure the efficient and effective operation of the Authority.
11- Appointing the Director General and determining his salary and benefits.
12- Proposing amendments to the laws related to industrial cities.
13- Utilizing specialized experts and consultants.
14- Forming special committees from Council members or others to carry out specific tasks.
15- Approving the establishment of offices in the designated industrial cities to facilitate the work of developers and operators.
16- Issuing and amending the Implementing Regulation.
17- Delegating some authorities to the Director General.

Article 6

Previous Amendments

The Council meets at least once every three months at the invitation of its President. The President must call the Council if requested by at least half of the members. The invitation must include the agenda, and for the meeting to be valid, a majority of the members must be present, including the President of the Council or their representative. Decisions are made by a majority of the votes of those present, and in the event of a tie, the side that the President of the Hearing votes with is favored. The Council may invite individuals whose information and expertise are deemed beneficial to attend its sessions, without granting them the right to vote. The deliberations and decisions of the Council are recorded in minutes signed by the President of the Hearing and the attending members. The Council may not issue decisions by presenting them to the members individually except in cases of necessity, in which case the written approval of all Council members on the decisions is required. These decisions are then presented to the Council at the first subsequent meeting to be recorded in the minutes of the meeting.

Article 7

If a member of the Council becomes aware of any matter related to the authority in which he has a personal interest, whether directly or indirectly, he must notify the Council immediately, clarify that interest, and record it in the minutes of the Council meeting. He shall not have the right to attend the discussion of that matter.

Article 8

The Director General is the executive responsible for managing the Authority and conducting its affairs, with his responsibilities limited to what is stipulated in this Statute and what the Council decides. He exercises the following powers:
1- Supervising the preparation for Council meetings.
2- Following up on the implementation of the Council's decisions.
3- Preparing the Authority's draft budget, draft final account, and annual report, and presenting them to the Council.
4- Supervising the Authority's personnel according to the powers granted to him and as determined by the regulations.
5- Proposing plans and procedures to develop the Authority's performance and presenting them to the Council.
6- Issuing orders for the Authority's expenses pursuant to the approved annual budget.
7- Providing periodic reports to the Council on the Authority's work, achievements, and activities.
8- Representing the Authority in its relations with other entities and before the judiciary.
The Director General may delegate some of these powers to officials within the Authority.

Article 9

The provisions of the Labor Law and the Social Insurance Law apply to the employees of the Authority.

Article 10

Previous Amendments
  • First - The financial resources of the authority consist of the following sources:

    • 1- All movable and immovable property that is transferred to the authority from the Ministry of Industry and Electricity.

    • 2- The income generated by the authority from engaging in activities that fall within its purposes, such as:

      • A- The revenue collected by the authority from the developer or operator, represented by 20% annually of the total revenue received by the developer or operator in exchange for developing or operating the specified industrial city established on government land, and the Council of Ministers may reconsider amending this percentage based on the Minister's proposal.

      • B- The financial fee for studying the application for a license to develop a specified industrial city.

      • C- The financial fee for studying the application for a license to operate a specified industrial city.

    • 3- The proceeds from the sale of lands in the specified industrial cities.

    • 4- Returns on the investment of the authority's funds.

    • 5- Any other funds that the Council decides to accept, such as donations, gifts, grants, and aids.

    • 6- The aids provided to the authority by the state.

  • Second - The authority's funds shall be deposited in an account opened for it at the Saudi Central Bank, and disbursements shall be made in accordance with the financial regulation of the authority.

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