The Council of Ministers

After reviewing the transaction received from the Royal Court numbered 32789 dated 15/6/1442 AH, regarding the establishment of a general framework for the treatment of employees and workers in the targeted sectors for transformation and privatization.

And after reviewing the rules and arrangements concerning the treatment of Saudi employees and workers in the targeted sectors for privatization, upon the transition of these sectors to the private sector (which have been canceled), approved by Council of Ministers Decision No. (210) dated 18/7/1429 AH.

And after reviewing the rules and arrangements concerning the treatment of employees and workers in the targeted sectors for transformation and privatization, issued by Council of Ministers Decision No. (616) dated 20/10/1442 AH.

And after reviewing memoranda No. (249) dated 25/1/1443 AH, No. (2011) dated 4/9/1443 AH, and No. (2871) dated 25/12/1443 AH, prepared by the Bureau of Experts at the Council of Ministers.

And after reviewing the recommendation prepared in the Council of Economic and Development Affairs No. (24-1/44/D) dated 6/1/1444 AH.

And after reviewing the recommendation of the General Committee of the Council of Ministers No. (2019) dated 30/2/1444 AH.

It is decided as follows:

The entities that commenced operations prior to the issuance of the rules and arrangements regarding the treatment of employees and workers in the sectors targeted for transformation and privatization, approved by Council of Ministers Decision No. (616) dated 20/10/1442 AH, shall carry out transformation or privatization operations and place their employees on the new scales as follows:

• 1- For the entities that commenced transformation or privatization operations based on the rules and arrangements regarding the treatment of employees and workers of Saudi employees in the sectors targeted for privatization, when these sectors are transferred to the private sector (now repealed), approved by Council of Ministers Decision No. (210) dated 18/7/1429 AH, or based on specific rules and arrangements issued by decisions from the Council of Ministers, they shall continue to apply the transformation or privatization procedures in accordance with those rules and arrangements.

• 2- For the entities that commenced transformation or privatization operations without specific rules and arrangements issued by decisions from the Council of Ministers, and are not among the entities covered by the rules and arrangements issued by Council of Ministers Decision No. (210) dated 18/7/1429 AH, they shall complete the transformation or privatization operations based on the rules and arrangements approved by Council of Ministers Decision No. (616) dated 20/10/1442 AH - after obtaining the approval of the Ministry of Finance - without linking the transformation or privatization operations to the application of paragraph (5) of Article (26) of those rules and arrangements, provided that those entities apply the provisions of that paragraph after completing the transformation or privatization procedures.

The entities that did not initiate operations before the issuance of the rules and arrangements approved by Council of Ministers Decision No. (616) dated 20/10/1442 AH, shall carry out transformation or privatization operations and assign their employees to the new scales as follows:

• 1- For the entities that have previously had specific rules and arrangements issued by decisions from the Council of Ministers, the transformation or privatization operations shall be carried out in accordance with those rules.

• 2- For the entities that have not previously had specific rules and arrangements issued by decisions from the Council of Ministers, the transformation or privatization operations shall be carried out in accordance with the rules and arrangements approved by Council of Ministers Decision No. (616) dated 20/10/1442 AH.