Implementing Regulation of the Statute of the Saudi Authority for Industrial Cities and Technology Zones

Chapter 1: Definitions

Article (1): Definitions

The following words and phrases shall have the meanings indicated next to each of them unless the context requires otherwise.
Statute: The Statute of the Saudi Authority for Industrial Cities and Technology Zones issued by Council of Ministers Decision No. (235) dated 27/8/1422 AH.
Authority: The Saudi Authority for Industrial Cities and Technology Zones.
Council: The Board of Directors of the Authority.
Minister: Minister of Industry and Electricity and Chairman of the Board of Directors of the Authority.
Director General: Director General of the Authority.
Specified Industrial City: The existing industrial city, and the government land submitted to the Supreme Economic Council for approval as an industrial city, technology zone, or business and technology incubators and approved by the Council of Ministers, or privately owned land approved by the Council as an industrial city or technology zone.
Developer: The natural or legal person who is contracted with the Authority to develop a specified industrial city.
Operator: The natural or legal person who is contracted with the Authority to rehabilitate, manage, operate, and maintain a specified industrial city.
Investor: The natural or legal person who is contracted with the Authority to provide services in the specified industrial city.
Development Contract: A contract between the Authority and a developer whereby the developer undertakes to develop, operate, maintain, and manage a specified industrial city.

Operation Contract: A contract between the Authority and an operator whereby the operator undertakes to rehabilitate, operate, maintain, and manage a specified industrial city.
Service Provision Contract: A contract between the Authority and an investor to provide or operate facilities or to provide services in the specified industrial city and its workers.
Existing Industrial Cities: Lands and sites allocated for establishing various industries according to an engineering plan that provides the infrastructure, services, and facilities required by those industries.
Technology Zones: Lands and sites for scientific clusters where infrastructure and additional services are available to create an advanced scientific environment that encourages invention, innovation, and creativity in various fields to ensure the development of knowledge-based, service, and vital industries, business and technology incubators, and the like.
License: A document issued and approved by the Authority for the developer, operator, or investor specifying the terms, duration, fees, and other conditions of the license.
Inspection: The act of the competent official inspecting and examining the works and activities to ensure proper execution in accordance with the terms of the contract or license.
Infrastructure: The basic works executed on land or a site for the purpose of establishing a specified industrial city thereon, including leveling, construction of road networks, water, sewage, electricity, gas, communications, and the like.
Right to Benefit: The benefit obtained by the developer or operator in return for developing or operating a specified industrial city or part of its facilities or services, or obtained by the investor, pursuant to a contract.
Beneficiary: The natural or legal person who benefits from the services available in the specified industrial city, including factory owners.

Chapter 2: Objectives of the Authority

Article 2: Strategy for the Development of Designated Industrial Cities

The Authority develops and implements the strategy for the development of industrial cities as specified in the industrial strategy of the Kingdom of Saudi Arabia.

 

Article 3: Establishment of Industrial Cities Designated by the Private Sector

1- The Authority prepares programs and sets plans to promote and activate the establishment of specified industrial cities, operate them, and maintain them with the highest efficiency available by the private sector, providing the best services, preparing the legal and economic environments, and facilitating procedures to achieve that goal.
2- The development, operation, and maintenance of the specified industrial cities are offered to the private sector. If this is not possible and the strategy for developing the specified industrial cities necessitates development, the Authority shall undertake the development, management, operation, and maintenance of these industrial cities and may coordinate with the relevant government agencies in this regard.

Article 4: Provision of Facilities and Services

The Authority coordinates with relevant entities to deliver or provide all facilities and services to the boundaries of the designated industrial city areas at the best prices, operational efficiency, within the specified times, and in the required quantities.

Chapter 3: Internal Regulations and Rules

Article 6: Board of Directors

1- The Council is considered the supreme authority over the affairs of the Authority, managing its matters and making all decisions in accordance with the Statute. The Board of Directors is responsible for setting the policies and rules governing the Authority's work, monitoring their implementation, approving executive plans, programs, periodic budgets, and overseeing their performance.
2- The Council appoints a Secretary, defines his competencies and remunerations. The Secretary's competencies include: preparing and organizing Council sessions, recording the minutes of its meetings and decisions in regular registers. The Secretary sends the invitation—issued by the Council Chairman pursuant to Article Six of the Statute—for convening the Council to its members at least two weeks before the scheduled date. The Secretary also sends the agenda and memoranda on the topics to be discussed to the members one week in advance. The Council's deliberations and decisions are recorded in minutes signed by the Council Chairman and the attending members. The Board of Directors' deliberations are confidential and may not be disclosed except with the permission of the Board Chairman.

Article 7: Internal Regulations

The Authority shall establish internal regulations and bylaws and have them approved by the Council, which include the following:
1- An organizational structure for the main executive units and functions of the Authority that defines their tasks and authorities in a manner consistent with the nature of the Authority's work, enabling it to perform its duties as specified in the statute and its executive regulations.
2- Financial and administrative executive regulations appropriate to the nature of the Authority's work, including the financial and administrative authorities granted to the various administrative levels within the Authority.
3- A regulation for the Authority's employees, consistent with its statute, specifying provisions related to them such as their appointment, promotion, determination of their salaries, allowances, bonuses, duties, and the manner of termination of their services.

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